A doctor wears a lab coat and stethoscope in an exam room at a health clinic in Calgary on July 14, 2023.Jeff McIntosh/The Canadian Press
Great pains
Re “Calm down, the sky isn’t going to fall with the capital gains tax hike” (Report on Business, April 23): The latest budget is perhaps the most irresponsible of this Trudeau government.
Yes, there are many unmet needs in Canada to possibly justify increased spending and, yes, I understand the political appeal of tax increases for the wealthiest taxpayers. But I find that the proposed policies are precisely the opposite of what the economy needs.
Per capita income is in decline, the result of abysmal productivity performance and a reflection of our poor record of capital investment. Yet this government undertook measures that will likely aggravate the emergency.
The Finance Minister insists this government is fiscally responsible. Why? Because there is no forecasted increase in debt-to-GDP ratio. The government never needs to restore budget balance as long as the economy is growing – that creates more room for more debt.
We are left to dream about what better uses we could make of the $54-billion we now send annually to bondholders.
Lloyd Atkinson Former chief economist, Bank of Montreal; Toronto
Before last week’s budget, 50 per cent of a $250,000 capital gain was tax-free.
Now, half of that $250,000 will still be tax-free. Tax accountants will likely find ways to plan away the increased inclusion rate for gains greater than $250,000 for most people.
Much ado about nothing for most everyone, unless maybe one’s compensation includes stock options or someone sells a family cottage that has appreciated nicely. Time to move on to real problems.
Harry Beach Hebbville, N.S.
I consider myself far from rich, but I have had good fortune in property investment.
Fifteen years ago, we bought a second property using a company. It has fortuitously earned $2-million in capital gains. An enormous windfall.
Under previous rules, we would be taxed on half of those gains, or $1-million. Tax at 9 per cent would have been $90,000, leaving $1.91-million. Does anyone feel sorry for us?
Under new rules, we will now be taxed on two-thirds of the gain, or $1.33-million. Tax at 9 per cent will be about $120,000. We will be left with only $1.88-million. Does anyone feel sorry for us now?
As Warren Buffett famously said, “My friends and I have been coddled long enough.”
Dick Hamilton Gabriola, B.C.
Re “Tax me?” (Letters, April 22): “What did I do to be hammered by this budget?”
I think the question should be turned around. What work did a letter-writer do to earn large increases in the value of a cottage?
Apart perhaps from some maintenance and upkeep, likely nothing. Yet even after the increase, capital gains will still be taxed at a lower rate than employment income.
All this and he gets to enjoy the wonderful benefits of a cottage while still owning the asset unlike, for example, stocks.
Andrew Clark Ottawa
Doctor is out
Re “Changes to capital-gains tax may prompt doctors to quit, CMA warns” (Report on Business, April 23): So doctors cashing in their personal corporations on retirement face tax on 66 per cent of gains.
As my company, of which I was a salaryman, had no pension plan, I depend on RRIFs for retirement. I face tax on 100 per cent of withdrawals.
I have no sympathy.
James Astley Ottawa
Some doctors in Ontario incorporate themselves to maximize income.
That means throughout their professional careers, doctors get to keep more of their income than the multitude of wage earners in Ontario, while having to pay some tax on their accumulated wealth when they retire. Nobody wants to pay more taxes, but it has become apparent to me that the wealthy pay something less than their fair share.
In this case, methinks they doth protest too much.
David Kister Kingston
New prescription
Re “The failure of Canada’s health care system is a disgrace – and a deadly one” (April 19): The accountability issue is huge in health care and should be top of mind. Do Canadians know what they pay for health care? Let’s track health investments against outcomes in ways we all can understand.
Removing barriers to doctor mobility and reducing administrative burdens are “quick wins” that can make meaningful differences now. We should amplify and accelerate work on integrated health human resource planning to deploy the right kind of care, in the right place, at the right time. We need to know who is doing what and where, and what services Canadians should reasonably expect in their communities.
Then the hard work begins: Break the silos and the “my skillset is better than yours” mindset. We should start training in teams, respect expertise and include patients in the dialogue.
All levels of government should stop quibbling over jurisdiction and get down to the basics of what Canadians need.
Kathleen Ross MD; president, Canadian Medical Association; Coquitlam, B.C.
The provision of health care in Canada is a provincial responsibility.
In Ontario, for example, it is because of the health care policies of successive governments that there is a major shortage of family physicians and nurses and a low level of care for the elderly; that among regions of countries in the Organization for Economic Co-operation and Development, Ontario has one of the lowest number of hospital beds per capita and one of the lowest financing levels of health care.
Yes, the Canada Health Act should be reviewed and renewed. That, however, will require tough negotiating with pharmaceutical and health insurance corporations, as well as the Canadian Medical Association and Canadian Dental Association, whose priorities, I believe, are in maintaining wealth and power.
The problems are clear to me. Aligning national, provincial and sectoral interests and responsibilities will be difficult and drawn out, but we should make a start.
Mervyn Russell Oakville, Ont.
One and only
Re “Being an only child gave me the best of both social and private worlds” (First Person, April 18): I too am an only child.
I was never lonely, never bored. I have always cherished a wonderful group of friends. I too have been comfortable in my own skin and enjoy my own company.
Until now. At 75, I have no spouse, no siblings, no close cousins. My friends are also 75 or older.
As I assist one after another of my nonagenarian friends as they decline physically and cognitively, I wonder: Who will assist me?
Kathryn Mikoski Ottawa
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