N.B. doctors ready to leave if new tax measures are implemented: survey - Action News
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New Brunswick

N.B. doctors ready to leave if new tax measures are implemented: survey

The president of the New Brunswick Medical Society says a survey of 500 doctors indicates nearly half would be willing to leave the province if the federal government's new tax changes for small businesses are implemented.

Medical society survey indicates 46% would move their practice outside New Brunswick

A survey by the New Brunswick Medical Society shows 45 per cent of doctors say they will leave the province if new federal tax measures are put in place. (Canadian Press)

The president of theNew Brunswick Medical Society says a survey of 500 doctors in the provinceindicates nearly half would be willing to leave the provinceif the federal government's new tax changes for small businesses are implemented.

Dr. Lynn Murphy-Kaulbecksaid doctors and small businesses pay some of the highest corporate income taxes in New Brunswick, and46per cent said they'd look elsewhere or consider moving to other jurisdictions if the changes took effect.

"I think it's going to have a fairly large impact," she said.

She said 65 per cent of the doctors surveyed said they would seriously look at decreasing the number of hours they worked and25 per cent would look at early retirement.

"It's going to have a big impact and I'm not sure the public realizes that."

Opt to move

Murphy-Kaulbecksaid moving to other jurisdictions would provide some level of taxation relief even if the federal government implements its proposed changes.

Dr. Lynn Murphy-Kaulbeck, president of the New Brunswick Medical Society, says some doctors are ready to reduce the number of hours they work if new federal tax measures for small businesses are put in place. (CBC)

"The level of taxes will be lower than what we have in New Brunswick," she said. "You've got to remember, physicians are portable and there are jobs across the border and in other places as well and so there are members considering that."

Murphy-Kaulbeck said the province's doctorsobject to all three changes being suggested by federal Finance Minister, BillMorneau.

A75-day consultation period is focusing on the contentious proposals in the federal budget:

  • The curtailment of "income sprinkling," a method by which business owners shift a portion of income to family members, either through salary or dividends
  • The curbing of "passive investment income," which the government describes as the investment of money left in a corporation, for purposes other than to invest directly in growth
  • The conversion of a corporation's regular income into capital gains, which typically attract a lower tax rate

Morneau has said the government wants a tax system that is fair for Canadians.

ButMurphy-Kaulbecksaid fee for service physicians are small business owners and are not equivalent to salaried physicians or other salaried professionals.

"To compare the two is not a fair comparison," she said,pointing out they, along with small business owners have no medical benefits, no retirement plans and other benefits enjoyed by salaried employees.

With files from Harry Forestell