Pushback on the proposed income tax changes increased in intensity, with the Canadian Medical Association launching broadsides at the policy under the rubric that it’s “sexist” and will drive doctors out of the country, while Conservatives have taken these arguments to social media, Lisa Raitt policing news aggregators and Kellie Leitch penning fundraising letters. Jane Philpott, addressing a CMA conference, assured them that they were operating under misinformation and that the goal of the changes was tax fairness – that those with spouses earning significantly less money or having adult children shouldn’t unfairly benefit from the existing system than those who don’t.
I did try to get some answers as to how this policy was “sexist,” because I’m not entirely convinced that these changes prevent people from using money in the corporation to finance parental leaves, never mind the fact that the previous government made a Very Big Deal about changing the EI system to allow self-employed people to contribute in order to finance maternity leaves – something that received very little uptake. And most of the stories that Raitt pointed to were anecdotal that didn’t point to where these policy changes were a problem – one example was a Facebook post where a dentist insisted that these current policies were what allowed her to keep up with male counterparts, which is an argument that makes no sense at all. They don’t prevent incorporation. They don’t prevent deductions of expenses or reinvestment in the business – it’s about not letting people use income sprinkling or splitting for the sole purposes of reducing their taxes. Not that it’s stopped the narratives that this hurts doctors or struggling small businesses.
Amazing trickle-down spin. This measure won't affect *anyone* earning $45k/yr, small biz owner or not
C'mon, guys. This stuff doesn't scan. https://t.co/pihb1DrWPq
— Stephen Gordon (@stephenfgordon) August 22, 2017
https://twitter.com/kevinmilligan/status/899703766282190848
Being a doctor – even a female doctor – doesn't confer special privileges for avoiding taxes.
— Stephen Gordon (@stephenfgordon) August 21, 2017
Also male MDs. Which do you think are more likely to be using income splitting/sprinkling?
— Stephen Gordon (@stephenfgordon) August 21, 2017
That's a bit of anon sequitur. Lots of people work long/irregular hours and still pay taxes.
— Stephen Gordon (@stephenfgordon) August 21, 2017
That's an argument for why doctors should be paid well, not for special tax treatment.
— Stephen Gordon (@stephenfgordon) August 21, 2017
This, I think, is your strongest argument.
— Stephen Gordon (@stephenfgordon) August 21, 2017
And this is a salient point – in Ontario, the provincial government encouraged this kind of incorporation rather than increase what they’re paying doctors, so you can see why they’re upset that these tools are being taken away from them. Nevertheless, it also largely proves that their arguments are fairly disingenuous, especially when they insist that “it’s not about the money.” But with none of their other arguments actually panning out, it seems to be that’s exactly what it is, and it’s fine if they come out and just say it. But to put on this song and dance about how the changes are “sexist” and that it somehow disproves Trudeau’s feminism, and ignoring the stated purpose of the changes with regards to tax fairness, makes the excuses start to ring fairly hollow.