Canada Taxes: Doctors Group Behind Tax Increases For Wealthy Canadians

Doctors For Fair Taxation

First Posted: 03/22/2012 12:03 am Updated: 03/22/2012 1:55 pm

TORONTO - A group of doctors is calling on federal and provincial governments to raise income taxes levied on high-income Canadians.

They are launching a campaign to get support for the idea, using the slogan "Tax us. Canada's worth it."

Doctors for Fair Taxation are proposing new surtaxes that would tax any income over $100,000.

People who earn between $100,000 and $170,000 would pay an extra one per cent on the income between those two figures and income between $170,000 and $640,000 would be subject to an extra two per cent levy.

Income over $640,000 and less than $1.85 million would be hit with an additional three per cent and income over $1.85 million would be subject to an additional surtax of six per cent.

The group estimates that the federal government would earn an extra $3.5 billion a year and Ontario would raise an extra $1.7 billion.

One of the organizers of the campaign, Dr. Michael Rachlis, says more than 50 doctors have signed the petition so far. A website hosting the petition will go live Thursday afternoon.

"Our group considers higher taxes a small price to pay for a more civilized Canada," says Rachlis, a public health physician and associate professor at the University of Toronto.

"We're becoming a more economically unequal society and we feel this is bad for our country's health."

Rachlis says the aim of the campaign is to get Canadians who would be paying the higher taxes to indicate their willingness, saying the organizers feel it would carry more weight that way.

Though the campaign has been started by doctors, anyone earning over $100,000 who supports the proposal can sign the petition.

One of the early signatories is Dr. Irfan Dalla, a Toronto-based physician who is also a member of Canadian Doctors for Medicare.

"Governments don't have the resources they need to address some of the causes of ill-health and some of the social programs that people want and need. And I think that people like me who are paid reasonably well can afford to contribute a little bit more to ensure that we have a fair society," Dalla says.

Rachlis says action needs to be taken to spare crucial public programs.

"We feel that this is a moral argument. We cannot talk about throwing people out of work and cutting needed programs for people," he says

"If the situations is that dire that governments are really feeling that that should be done, it seems to me that the only way to think of that is to tax higher-income earners who've seen their taxes fall a lot."

———

Online:

http://doctorsforfairtaxation.ca/

Loading Slideshow...
  • What Canada's Bank CEOs Earned Last Year

  • 6. Louis Vachon, National - $7.5 Mln

    <strong>Profit per dollar earned by the CEO: $162.27</strong> National Bank's Louis Vachon took home $7.5 million, the lowest total of any of the six major banks, but the most in terms of the bank's net income.

  • 5. Gerry McCaughey, CIBC - $9.5 Million

    <strong>Profit per dollar earned by the CEO: $326.32</strong> Gerry McCaughey's total compensation grew 12 per cent, to $9.5 million, in 2011. Source: <a href="https://www.cibc.com/ca/pdf/investor/proxy2012.pdf" target="_hplink">CIBC Management Proxy Circular</a>

  • 4. Bill Downe, BMO - $9.9 Million

    <strong>Profit per dollar earned by the CEO: $330.81</strong> Bill Downe's total compensation for 2011 was up 4.2 per cent from his 2010 pay of $9.5 million. Source: <a href="http://ca.reuters.com/article/businessNews/idCATRE81Q1W320120227" target="_hplink">Reuters</a>

  • 3. Gordon Nixon, RBC - $10.1 Million

    <strong>Profit per dollar earned by the CEO: $480.40</strong> Gordon Nixon's total compensation fell 8 per cent in 2011, to $11 million. Source: <a href="http://www.rbc.com/newsroom/2012/0206-proxy.html" target="_hplink">RBC Management Proxy Circular</a>

  • 2. Rick Waugh, Scotiabank - $10.6 Mln

    <strong>Profit per dollar earned by the CEO: $501.71</strong> Waugh's total earnings for 2011, at $10.6 million, were down slightly from the $10.66 million he earned in 2010. Source: <a href="http://www.thestar.com/business/article/1137400--scotiabank-ceo-s-pay-down-slightly-from-2010" target="_hplink">Toronto Star</a>

  • 1. Ed Clark, TD Bank - $11.3 Million

    <strong>Profit per dollar earned by the CEO: $517.45</strong> Ed Clark's total compensation for 2011 was meant to be around $12 million, but the bank's board scaled it back to $11.3 million -- roughly the same as in 2010. Source: <a href="http://www.thestar.com/business/article/1135817--td-bank-ceo-ed-clark-s-pay-down-to-11-3-million-in-2011" target="_hplink">Toronto Star</a>

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TORONTO - A group of doctors is calling on federal and provincial governments to raise income taxes levied on high-income Canadians.They are launching a campaign to get support for the idea, using the...
TORONTO - A group of doctors is calling on federal and provincial governments to raise income taxes levied on high-income Canadians.They are launching a campaign to get support for the idea, using the...
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06:37 AM on 03/23/2012
Here's a thought cut the government down by 50% across the country. Save a lot of money that way.
I remember Reagan had 12 cabinet members helping him run the most powerful country in the world and here in Canada Mulroney had over 32 cabinet members helping themselves at the trough.
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whoknew42
Credulity is not a virtue
09:59 AM on 03/23/2012
There are a lot of misconceptions about Reagan - take it from an American

The republicans sing his praises, but he did a lot of things that they would frown upon today

All of his cuts did nothing but destroy the disenfranchised and poorer communities over here - and caused the great divide in the income/wealth gap

That's nothing to be proud of
11:24 AM on 03/23/2012
Whoknew2012, if you look at how Obama solved the problem with auto industry, you will realize that although he did give a bailout, the union workers had to take a paycut, the auto manufacturers have to come up with a sound plan on how they can cut spending, invest in innovation and retool the plants.

This is the same approach that is needed to fix our healthcare, these doctors cannot simply ask for a tax hike, yet do not provide any suggestions to make the system better. If you read my post, just a brief tally will net you two billion dollars wasted and I am not even looking hard. This 1-2 billion is not even due to inefficiently, it is blatant fraud. The healthcare issue requires a comprehensive plan, neither tax hike alone nor cuts alone will address the issue. Would be happy if you went to a doctor with a knife wound and doctor just put a bandaid on you and say you'll be fine? There are many issues we need to look at before putting the bandaid on. That's my analogy to the situation.
11:24 AM on 03/23/2012
As it stands what this plan is doing is shift the blame to tax payers for the frauds that are happening in the systems. Asking people making 100plus to make sacrifices without actually fixing the system. That is not fair. If they fix the system and still find the system needing more resources. I am willing to pay more than just 1% because I do love and believe in Canadian health care
01:44 AM on 03/23/2012
Here is a more democratic solution. Let all people pay extra taxes (say an extra 5%) and also let each tax payer decide where that extra 5% will be spent-ie. education, health, pensions etc. and have a law enforcing governments to abide by the tax payers wishes. This will enable each person to have a better say in the finances of the country.
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Harry Bradford
11:53 PM on 03/22/2012
Wow! So many people on this forum are missing the point. Extremely well-educated, thoughtful doctors are VOLUNTEERING to accept tax hikes and cynical people criticize them? To the first two commenters, green advisor and L3mon, I have to ask, what is your problem with accepting the GENEROSITY of these kind doctors? To many other posters, I must ask, why are you ranting about things that have nothing to do with the doctors' offer?
12:06 AM on 03/23/2012
If they are so generous, they should just write a cheque to the hospital and be done with it. This is not what they are doing.
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Harry Bradford
12:20 AM on 03/23/2012
Either way, they are willing to make sacrifices for their country and do not deserve your criticism.
12:18 AM on 03/23/2012
Harry, the doctors did not volunteer themselves alone for this tax increase. They volunteered everyone making above 100k.

I have no problem with tax increase if our tax dollars were used efficiently.
Just google e-health waste and ORNGE and you already have $1.5 billionCDN dollars wasted without doing anything. Can this be put towards better use? This is not a small amount $1.5billion we are talking about here and it is only the tip of the iceberg. I work in healthcare and see money poured down the drain everyday.

How can we just increase taxes without holding people in the system accountable when they use our dollars? That is the problem I have with their proposal. Increasing taxes is only problem shifting, shifting the problem onto people with a higher income without actually looking at why the system is failing. Like putting a bandaid on a knife wound without stitches.
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Harry Bradford
12:54 AM on 03/23/2012
All systems have a certain amount of waste and fraud because humans are flawed. Our corruption is nothing compared to what is going on elsewhere.
In some countries, one must pay a bribe to get a job or receive government services. But even with the scandals you rightly cite, it still cost me and my wife a whopping $33.75 for 12 days of hospitalization in 2009. My wife and I make a combined $85000 while supporting two unemployed adult children, and I would still be willing to pay a bit more because I'm grateful for the
treatment my family has received
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10:46 PM on 03/22/2012
Sorry I dont buy it....half the doctors I see here are East Asians that got their degree in Canada and headed for greener pastures.
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Harry Bradford
12:08 AM on 03/23/2012
This is a disgusting, racist comment. My wife and I go to a local clinic which has several "East Asians" who have stayed at the clinic for the last 20 years. Three different "East Asian" doctors discovered my 13 year old daughter's pre-cancerous lymph node condition, my wife's uterine cancer, and my high blood pressure. I remember the "Caucasian" staff at the front desk complaining about Dr. Shukla ordering so many tests for my wife. "Why does he always have to be so thorough?" Then it turned out that the VERY LAST test showed the cancer.
But, go ahead, see what you WANT to see.
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08:43 AM on 03/23/2012
Harry you miss my point entirely, You need to stop with your quixotic,self centered posts and employ some critical thinking if you ever wish to benefit your country. After reading through a few of your posts I have learned the following about you:
you make 85k
your wife stayed in a hospital for 12 days and you only paid 33.75
you grew up on welfare
your whole family has been treated for serious ailments by Dr. Shukla and you presumably paid nothing for it.
you are grateful for the system
you currently support your two adult children because they are unemployed,
Presumably you have or will apply for unemployment benefits for your children because its your right..correct? Conclusion: you get a lot of free stuff and its fun,your offspring are starting out just like you did, you should be proud. Do you understand that if all citizens were like you the system would become unsustainable pretty quickly? Will you still love the system when you have to pay what it actually costs? The streets of Greece of full of simpletons like you that believe it is your right to consume more than you produce and when the money runs out demonstrate violently in the streets at the people bailing you out.
09:21 PM on 03/22/2012
This is a load of crap. As someone working in the healthcare sector, let me tell you. Hospital pays $5 to Staples for a box of pen that is 99cents at Staples because of exclusive contract. e-health wasted ONE BILLION dollars. Just this week, ORNGE helicopter scandal, google it. Buying helicopters when we don't need them and at outrages prices. So many contracts WITHOUT bidding process. Anyone working in healthcare can point to wasteful spending without even trying to look. This is how bad our resources are being allocated, lining pockets of the people who abuse the system and get takebacks. No one wants to change the system, no one wants to solve the problems and just shift it to tax payers.
10:02 PM on 03/22/2012
continued. No one is held accountable for their spending. I am ALL FOR the Canadian Healthcare. I do not have a problem with raising taxes if our money was spent efficiently. There are so much wasteful spending, it is like pouring water into a severely leaky pipe to transport water.

Increasing cost of healthcare is a burden and I believe everyone should shoulder the burden. If I play my part(accepting a tax raise), will the government take away these billions of wasteful spending? This is what angers me the most. Dumping millions and billion dollars on NOTHING, and then hold out a hand asking for more money.
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10:54 PM on 03/22/2012
A government big enough to provide everything you need, is big enough to take away everything you have. Big government is not always the answer.
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10:50 PM on 03/22/2012
Makes a lot of sense....Never will understand why people are so trusting that their tax dollars will be spent more intelligently by a government bureaucracy.
09:11 PM on 03/22/2012
If these doctors had articulated this view in the U.S., the media would have already branded them as communist. Although I fully agree with raising taxes on the richest 10%, the problem is compounded by the fact that there are so many loopholes in the current tax system which need to be done away with first. This is what prompted Warren Buffett to famously declare that his effective tax rate is less than his secretary's. When a multi million dollar company like General Electric not only doesn't pay taxes but gets millions of dollars in tax refunds, you know that something's rotten at the core. Moreover, the present system makes it easy for the rich to move their money to tax havens to avoid taxes.Countries could use more ethically minded rich people like J.K Rowling (of Harry Potter fame), who, when asked why she didn't imitate other British celebrities and move her money out of Britain, simply said that it would not be the patriotic thing to do since she benefited from society when she was in dire need and now she feels it's time to pay society back.
09:15 AM on 03/23/2012
We don't need to raise anymore taxes! Government can not responsibly handle the tax money it takes in now! Case in point: Ontario
08:16 PM on 03/22/2012
This is just common sense. There is a minimum lifestyle and security for a person. It costs X amount. The wealthier you get, the more choice you have to add comfort to that. As you should.But your wealth is a product of the common resource. The more wealth you accrue, the more of it is taken from the common resource. A sliding scale of reimbursement is not punitive. You are still wealthy and have a large percentage of comfort. I have recently just gotten into the next tax bracket. I thank all who contribute to this. And I gladly pay that tax. It is a small percentage that goes back to the common resource, that I earn it from. It goes back into this wonderful country that I love. Wonderful due to ALL who have worked to make it so.
09:22 AM on 03/23/2012
Well said comrade. However effort, hard work and creativity are not part of the "common resource." Capitalism rewards twice: Once for that hard work and creativity. And then it rewards society with the creation of jobs and opportunities produced by the original hard work and creativity. This is all that's needed and it's the system that has lifted 200 million people out of poverty in Asia over the last 2 decades.
04:02 AM on 03/24/2012
But it is unfortunate that the creation of those jobs was at so much expense of others jobs and wages. Also the creation of staggering debt to buy stuff in spite of stagnant wages and lost quality jobs. A lot of fiat currency was printed, borrowed or computed into existence with less real economy to back it. Money has to move to work and make growth. It is pooling in few pockets. While phoney money and debt grows instead. At least a progressive tax scheme can pry some more money back into circulation of paycheques and such.
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Latzy von Biron
Just living is not enough.
07:30 PM on 03/22/2012
Great news! Bravo doctors! Canada should emulate the civilized societies of Europe like Britain, Germany, France, Benelux, Scandinavia etc.... not the backward regions of the south governed by religious and political fundamentalism and social inequality of citizens.

(I meant of course countries like Saudi Arabia, Pakistan or Sudan)
11:18 PM on 03/22/2012
What you did there, I see it
09:25 AM on 03/23/2012
Yes lets emulate civilized societies that are on the verge of going broke. So civilized in fact that they would in debt their own children, grandchildren and great grandchildren for their own enlightened lifestyle of entitlement.
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Latzy von Biron
Just living is not enough.
01:13 PM on 03/23/2012
Well, honestly, no one has larger debts than the US, and they have negligible taxes and next to no social program with infrastructure falling apart.
Germany going broke? France going broke? Britain going broke? Norway broke? Netherlands broke? Denmark broke? Which planet or dimension are you from?
Those in EU who are going broke are the countries which tried to emulate the American way of life fed down the throats through the media, and literally with McDonald and Coke. Their fault to stretch beyond their means (Like Greece, Italy or Spain).
compro01
Conservatism : Policy-based evidence making
11:42 AM on 04/12/2012
Yep, Germany, France, and the Scandinavian countries are going broke.

That's why their debt is so much higher than hours.

Oh wait, Germany's debt is lower than ours (as % of GDP), so is France's, and Norway and Finland have less than 2/3rds our debt.
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Lou on Vancouver Island
Allin, Lou: Mystery Author
06:58 PM on 03/22/2012
Tax and regulate pot like alcohol. Why should the dealers have all the money? I am serious and hope BC leads the way.

In case you think I'm a pothead, I've never even tried it and I'm 66. I'm such a purist that I've been waiting for it to be legal.
08:40 PM on 03/22/2012
Recreational and casual use of weed is OK, I guess. All it ever did for me was make me sleepy, hungry, and not want to party.

But I've never seen a stoner amount to anything.
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10:25 PM on 03/22/2012
Don't be so hard on yourself.
07:52 AM on 03/23/2012
Sir Richard Branson (Virgin brands), Michael Bloomberg (founder of Bloomberg L.P. and Mayor of NY), Ted Turner (media mogul, and too many other things to list) just a few pot smoker names you'd know.
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Lou on Vancouver Island
Allin, Lou: Mystery Author
06:44 PM on 03/22/2012
Proud of you, Canada. And I totally agree. I've never paid enough taxes. Really. Not for what we get.

Vancouver Islander
09:29 AM on 03/23/2012
Well then go down to your local government office and hand them a cheque for the amount that would make you feel paid up for what you get. Freedom of choice would allow me to decline doing the same. But i know that's not what you mean is it? You will only be happy when were all doing what you think we should be doing.
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Gathled
I am an extreme moderate...
06:28 PM on 03/22/2012
Thank the gods we Canadians are not rabidly insane like the American republican party.
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rickthaluddite
What noisy cats are we
08:05 PM on 03/22/2012
Unfortunately, we have the rabidly insane with a majority position in the House of Commons right now.
08:42 PM on 03/22/2012
You mean those Left-wing socialist Conservatives?!

That is funny.

They support the nanny-state concept 100%.
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Poster999
A promise made is a debt unpaid.
05:40 PM on 03/22/2012
It sounds reasonable. Now if only the government doesn't blow the money on prisons we don't need.
09:30 AM on 03/23/2012
No, better they blow it all McGuinty style.
05:35 PM on 03/22/2012
1st thing you learn in the Canadian Securities course is that money will gravitate to where it gets the best return. If it is out of Canada , so be it. I think the days of raising taxes and getting more money are done. For every percentage increase, you will see the same mount leave for Greener Pastures . Might be a few less Doctors too. 50 Doctors making a list is not a big list. EVeryone always wants the tax increases to apply to other people earning "more". I love the claim that if you make 100K in Toronto you are not rich. There are people making $12 per hour or less in Toronto.
05:34 PM on 03/22/2012
To put it bluntly, the Doctors behinds this are HYPOCRITES.

If the doctors are going to suggest raising tax rates, why didn't they start with eliminating their professional corporation status. Some of the benefits they receive having their revenue received by their professional corporation ---- Corp pays a lower tax rate, split income with family members thereby lower effective tax, dividend out income to themselves and family members to lower their effective tax rate, generous tax writeoffs.

Personally I have argued in favor of doctors getting more money with my lawyer friends and in a nutshell, the lawyers believe they are worth more than a doctor.(that's another story in itself)

However, the doctors cannot propose this policy and not address their own loopholes.
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DeceitinDrugs
05:08 PM on 03/22/2012
An excellent plan to for those, who live well to help others.
09:37 AM on 03/23/2012
Why aren't others helping themselves? The occupy movement was populated with students who thought the wealthy should pay down their student loan debt. Why should they? Don't like the debt? Don't accrue it. Who are these others? And why do they merit a hand out?