Provincial Economies III

[whatnext]

Originally Posted by YOWetal

Yes but we no longer pay doctors substantially less. They have seen an explosion in compensation. Much more than almost any other profession since 2000. Like civil servants who were once paid less but got a pension they are now getting the best of both worlds.

Although there is no shortage of civil servants and it is highly unlikely people would die if there were.

[YOWetal]

Originally Posted by 1overcosc

Also - the rest of us - basically anyone who is a employee of an employer - gets a tax shelter much better than anything doctors got prior to 2024 - the RRSP program.

Everyone can use an RRSP but the tax shelter of a corporation is better. Or was at least the gap is narrowing for sure and in some instances you might want to pay yourself and use RRSP.

[1overcosc]

Between this and the 2017 tax reform, and looking at the whole Trudeau policy suite since 2015, you'd get the sense that there is a deliberate policy to attack small business and self-employed people, and create an economy where everybody is either a government employee, an employee of a large Canadian oligarchy, or an employee of a branch office of a foreign multinational giant.

[MonctonRad]

Originally Posted by YOWetal

Everyone can use an RRSP but the tax shelter of a corporation is better. Or was at least the gap is narrowing for sure and in some instances you might want to pay yourself and use RRSP.

The RRSP is best considered to be a retirement supplement program. It is useful in addition to any pension you may have, or to your other retirement savings. If you are solely reliant on your RRSP, OAS and CPP, you will certainly not be able to maintain anything near your pre-retirement lifestyle.

The capital gains changes to professional corporations are a major kick in the nuts to physicians, dentists, and other personally incorporated professionals. We saved within these corporations for the last couple of decades operating under certain assumptions as to what this would afford us in terms of post retirement income, and, then when it comes time to withdraw our savings, JT and the gang change the rules. This is a blindside, pure and simple.

[thewave46]

For pure dastardliness, this does rate high for incorporated professionals. Admittedly, they're not exactly Liberal Party of Canada target demographics.

Perverse incentive to improve healthcare, perhaps. 'Work longer near retirement MDs, because we just pulled the capital gains rug out from under you!' laughs LPC braintrust.

Meanwhile realtors and federal government employees send their love to the party.

Canada 2024, ladies and gentlemen!

[MonctonRad]

Originally Posted by thewave46

Perverse incentive to improve healthcare, perhaps. 'Work longer near retirement MDs, because we just pulled the capital gains rug out from under you!' laughs LPC braintrust

I was already planning to work until I was 69. Will I now have to work until I'm 72?

C'mon JT - when is enough enough????

The problem with physicians is that we have no pension. We also have no guarantee how long we'll live. If I'm typical for my family and drop dead when I'm 82, I'll be OK, but what happens if I unexpectedly live to be 95. At some point I will become a burden to my children under JT's new plan......

[lio45]

Originally Posted by MonctonRad

The problem with physicians is that we have no pension. We also have no guarantee how long we'll live. If I'm typical for my family and drop dead when I'm 82, I'll be OK, but what happens if I unexpectedly live to be 95. At some point I will become a burden to my children under JT's new plan......

Isn't that what MAID is for?




(Just kidding!)

[MonctonRad]

Originally Posted by lio45

Isn't that what MAID is for?




(Just kidding!)

I hear JT''s favourite movie is "Logan's Run."

[casper]

Originally Posted by MonctonRad

I was already planning to work until I was 69. Will I now have to work until I'm 72?

C'mon JT - when is enough enough????

The problem with physicians is that we have no pension. We also have no guarantee how long we'll live. If I'm typical for my family and drop dead when I'm 82, I'll be OK, but what happens if I unexpectedly live to be 95. At some point I will become a burden to my children under JT's new plan......

The plan is to increase CPP coverages and there are always RRSPs.

Originally Posted by thewave46

For pure dastardliness, this does rate high for incorporated professionals. Admittedly, they're not exactly Liberal Party of Canada target demographics.

Meanwhile realtors and federal government employees send their love to the party.

Canada 2024, ladies and gentlemen!

Well these "incorporated professionals" we are talking about are mostly what Doctors (who own their practice), Lawyers, and realtors.

I value the work all three groups do for society, however the average Canadian is not going to get super excited over a tax avoidance scheme used by either of those three groups.

[theman23]

Yes, telling someone near the end of their working career to choose to invest in an RRSP is great advice.

A reminder that the ability to incorporate and defer income taxes for retirement was a negotiated benefit between the provinces and physicians, in lieu of increased payments. Last I checked there aren't any jurisdictions in Canada with an excess of physicians, so its not hard to guess how this will effect provincial coffers.

[ToxiK]

Originally Posted by MonctonRad

I hear JT''s favourite movie is "Logan's Run."

Or Soylent Green...

[WarrenC12]

Originally Posted by 1overcosc

Also - the rest of us - basically anyone who is a employee of an employer - gets a tax shelter much better than anything doctors got prior to 2024 - the RRSP program.

Corporations are far better tax shelters than RRSPs.

[P'tit Renard]

Originally Posted by WarrenC12

Corporations are far better tax shelters than RRSPs.

Far better in what way? The only real downside to RRSPs relative to CCPCs is the hard annual contribution caps. But then CCPCs now contend with their own passive income SBD clawbacks, which makes it a weaker tax deferral mechanism than RRSP.

In terms of administrative expenses, tax compliance, tax audit etc CCPCs would be way more costly.

[WarrenC12]

Originally Posted by P'tit Renard

Far better in what way? The only real downside to RRSPs relative to CCPCs is the hard annual contribution caps. But then CCPCs now contend with their own passive income SBD clawbacks, which makes it a weaker tax deferral mechanism than RRSP.

In terms of administrative expenses, tax compliance, tax audit etc CCPCs would be way more costly.

Corporations allow a ton of flexibility. RRSPs have pretty strict rules around contributions and withdrawals, and of course are subject to personal income tax rates, the highest of all tax rates. You can't even take advantage of income splitting with your spouse.

RRSPs are a useful tool, but not as good as TFSAs.

[whatnext]

Jayzus, where do the Libs get them?

Alan Fryer 🇨🇦🇺🇦🇮🇱
@alanfryermedia
Incredible. Minister admits capital gains increases could cause family doctors to leave Canada. Not to worry, though, she says, we’ll just bring in more foreign trained docs.

https://twitter.com/alanfryermedia/s...25859140055419

[theman23]

This is one of those things that seems like low lying fruit and often gets repeated if you have no idea what you're talking about. It seems the the minister of small business had no idea how to answer the question and had to ad lib.

There is no country in the world that has a surplus of medical workers. It's also not true that Canada makes it exceptionally difficult for foreigners to practice. Is there delay and bureaucracy? Yes, but that's true regardless of where you were trained. It would take me 6 months to get a license to practice in Ontario, and I did all of my training there. BC is just as slow. For reference, 36% of practicing doctors in this country are immigrants, which is higher than the proportion of immigrants in the general population (22% when comparing the same year).

[casper]

Originally Posted by theman23

This is one of those things that seems like low lying fruit and often gets repeated if you have no idea what you're talking about. It seems the the minister of small business had no idea how to answer the question and had to ad lib.

There is no country in the world that has a surplus of medical workers. It's also not true that Canada makes it exceptionally difficult for foreigners to practice. Is there delay and bureaucracy? Yes, but that's true regardless of where you were trained. It would take me 6 months to get a license to practice in Ontario, and I did all of my training there. BC is just as slow. For reference, 36% of practicing doctors in this country are immigrants, which is higher than the proportion of immigrants in the general population (22% when comparing the same year).

So, I think what your saying is we need to open up more seats in Canadian medical schools. The government out in BC is doing its part, its opening up a new medical school. SFU in Surrey. Sounds like we need to do the same in other parts of Canada.

[theman23]

Originally Posted by casper

So, I think what your saying is we need to open up more seats in Canadian medical schools. The government out in BC is doing its part, its opening up a new medical school. SFU in Surrey. Sounds like we need to do the same in other parts of Canada.

Yes, problem solved.

[SpongeG]

Fossil fuel subsidies cost Canadians a lot more money than the carbon tax
Published: April 1, 2024 10.56am EDT Updated: April 2, 2024 2.22pm EDT

Every year, federal and provincial governments use taxpayer dollars to provide financial supports or tax breaks to fossil fuel companies.

These subsidies cost Canadian taxpayers at least $6.03 billion, or roughly $214 per taxpayer every year. And unlike the federal carbon tax, Canadians don’t get a rebate on this tax.

https://theconversation.com/fossil-f...n%20this%20tax.

[MonctonRad]

Originally Posted by whatnext

Jayzus, where do the Libs get them?

Alan Fryer ������������������������������������
@alanfryermedia
Incredible. Minister admits capital gains increases could cause family doctors to leave Canada. Not to worry, though, she says, we’ll just bring in more foreign trained docs.

https://twitter.com/alanfryermedia/s...25859140055419

Well, it's good to know where my profession stands with the Liberal Party of Canada under Justin Trudeau.

I guess we are all expendable to the God of Liberal fiscal anarchy.

Granny's GP might be more than happy moving to Texas - there is no state income tax in Texas, and, you don't have to buy snow tires in the winter. I wonder though if Granny will be happy with her replacement physician, a recent graduate from the University of South Sudan with poor English skills and no experience in working in a high tech Canadian medical environment.

But, I guess a doctor is a doctor is a doctor. As long as we have an MD behind our name, that's good enough.