Health Minister Mark Holland said that despite his "deep appreciation" for the work that doctors do in Canada, the federal government has no plans to cancel the proposed changes to the capital gains tax outlined in the recent budget, despite the opposition from the Canadian Medical Association (CMA).

Holland told CTV question period host Vassy Kapelos in an interview that aired on Sunday: "I believe these are fair changes, and there are still many tax advantages, and accumulated benefits for them, that will be maintained and continued."

The budget proposes increasing the inclusion rate of capital gains from 50% to 67% for individuals earning more than $250,000 from capital gains in a year, and for all corporations and trusts, without this minimum threshold.

This means that the share of capital gains subject to tax is rising, a change that the government says will bring in over $19 billion over the next five years.

But doctors have expressed concerns about the proposal, warning that it could undermine their retirement plans, as many have incorporated their medical practices.

Prime Minister Justin Trudeau has dismissed these concerns, stating that the change is about "fairness," while Dr. Kathleen Ross, the head of the Securities Commission, told CTV News' Power Play that it sounds like a "defeat" for a "morally defeated" and "overwhelmed medical workforce coming out of the pandemic."

She pointed out that provinces have "encouraged" family doctors over the past 15 to 20 years to incorporate as a "retirement savings vehicle" ... "instead of increasing fees at that time." Ross added that the Securities Commission estimates that about eight percent of doctors' retirement savings will be "captured" by the tax change, which she described as "substantial."

According to the CMA, more than two-thirds of doctors in Canada have incorporated.

When Kapelos asked him if this could be interpreted from the Prime Minister's and government ministers' comments that doctors would have to pay more to support government spending, Holland replied, "No, not at all."

Holland stated, "I greatly appreciate the work done by doctors, nurses, personal care workers, and the work that everyone does in our health system is truly exceptional," adding that the goal of increasing the capital gains tax is to ensure that those who "have seen their wealth grow tremendously" pay more to reduce the "huge inequality" in society.

Kapelos pressed further, asking whether Holland believes that doctors deserve to keep more of the wealth they have worked for.

Holland said, "Of course they are working for their assets. But look, we can choose the type of society we want to live in. Do we want to be in communities where there are great disparities?"

According to the Canadian Institute for Health Information, the average total payment per doctor in Canada in 2022 was $357,000, including family doctors, specialists, and surgeons. But registered doctors also pay their staff and cover overhead costs of their practice from this amount.

However, Holland stated that there is "misinformation" circulating about the effects of the capital gains tax change on doctors, and that despite the increase in the inclusion rate, there are still many tax advantages to incorporation.

"Clearly, we want to work with them to make sure - and I know they care deeply about this fairness across the country as a whole - that we're investing in things like healthcare, and that there is a healthcare system in place." He said, "They work well for them and for their patients."