While doctors fume, nurses support tax changes

In a blow to the political efforts of doctors to halt proposed tax changes that will hit their income, the Canadian Nurses Association has come out in favour of the federal government’s plan.

A statement posted Tuesday evening by the CNA, which represents about 139,000 registered nurses, said it supports the government’s “aim to achieve federal tax policy that treats all sources of income similarly and equitably, based on the principles of social justice.”

The CNA is also encouraging its members to write to their local MP about the changes, mirroring a campaign by doctors to do the same in opposition to the proposal.

“CNA supports the proposed changes to the federal tax code, which reasonably strengthen the rules on increasingly popular but potentially unfair tax advantages for incorporated highincome earners,” the statement says.

Unlike doctors, most registered nurses are salaried and unlikely to get much in t he way of t ax benefits from incorporating (though some nurses are self- employed). Doctors, by contrast, are considered independent contractors and get their income through fees regulated by provincial governments.

Barb Shellian, CNA’s president, said in an interview that registered nurses aren’t trying to provoke a confrontation with doctors, but have studied the government’s proposal and broadly support its aims.

“We don’t see this as a foundational change for a large number of people in the health- care system,” she said.

Federal Finance Minister Bill Morneau has proposed sweeping reforms to the way private corporations are taxed, with the stated goal of reducing tax avoidance by the wealthy. A wide range of small business groups and professional associations who are worried about the effect of the proposal have joined efforts to oppose the government.

Speaking before a Liberal caucus retreat in Kelowna, B.C., Prime Minister Justin Trudeau emphasized the government has no plans on backing down.

“I want to be clear: People who make $ 50,000 a year should not pay higher taxes t han people who make $250,000,” he said. “We’re always open to better ways to fix that problem, but we are going to fix that problem.”

Around two-thirds of Canadian doctors are incorporated.

There are extensive guides for doctors on how they can save tens of thousands of dollars through incorporating. As one example, doctors can name family members as shareholders and then split their income through the corporation to drop the doctor’s income into a lower tax bracket.

The proposed changes, announced on July 18 for a 75- day consultation period, would include requiring all family members named as shareholders to pass a test to ensure they are legitimately earning the dividends.