Doctors have been thrust into a heated debate over the Liberal government’s proposed changes to the federal tax system, without a collective diagnosis on what impact the plan would have.

Those in favour of clamping down on the tax-saving “loopholes” identified by Finance Minister Bill Morneau - by mandating a test to justify income sprinkling, steeper capital gains taxes, and less corporate shelter for passive investments - argue the plan will increase fairness and pad government coffers for underfunded social assistance measures. A vocal faction of physicians disagree. They predict dire consequences for their profession if the changes are enacted.

The Trudeau government has faced sharp criticism from opposition MPs who insist the changes will hurt a broad range of small business owners. Morneau argues the tax package will smooth out inequalities facing the middle class. He will defend the proposals before the House of Commons finance committee on Thursday.

The government has said the income-sprinkling change alone would raise an estimated $250 million in additional federal revenue.

A New Brunswick Medical Society poll of more than 500 doctors found 65 per cent would consider working less, a quarter would think about retiring early and nearly half would weigh options to leave the province in search of a more favourable tax climate.

Dr. Lynn Murphy-Kaulbeck, the society’s president, told CTV’s Your Morning that her membership feels victimized by government leaders.

“There seems to be somewhat of an attack on physicians by our prime minister. We heard in the House of Commons that we are being referred to as ‘wealthy physicians,’” she said.

The New Brunswick Medical Society points out the tax overhaul would impact 70 per cent of doctors who operate as a small business in that province, saying those individuals are already forced to grapple with pricy equipment, insurance, and office space without a pension plan, paid vacation, and ironically sick leave and health benefits.

Data from the Canadian Medical Association suggests a majority of doctors are incorporated across Canada, giving them access to a host of levers to reduce their tax footprint.

Dr. Murphy-Kaulbeck feels those mechanisms are vital to her society’s membership. She warns New Brunswick is already struggling to retain a baseline of doctors to support its healthcare system and expects Morneau’s plan will weaken access to care, especially in rural communities.

“Income splitting is one of the things that they are looking at taking away, that’s often used by physicians in rural areas,” she said. “Spouses and partners often have a hard time finding employment, income splitting is one way for that spouse to get income.”

Emergency physician Dr. Edward Xie said he is one of nearly 500 doctors and medical students who recently signed an open letter to Morneau saying they see things differently. As an incorporated physician, he will be directly impacted by the prosed tax overhaul.

“What we have is a problem with inequality in the system,” he said. “We believe in a fair and equitable tax system. These changes bring us close to that.”

Dr. Xie is calling for a broader review of Canada’s tax regime, which he believes is more advantageous to corporations and the wealthy.

The letter to Morneau takes direct aim at the reactionary tone of physician organizations opposing the changes and highlights the wage gap between the average Canadian and the average doctor.

“The median income of an individual in Canada was $33,920 in 2015, a fraction of the income of most full-time physicians,” the letter states. “We need adequate tax revenues to fund social programs such as affordable housing, pharmacare, social assistance, legal aid, and the healthcare system itself.”

With the clock winding down on the government’s 75-day consultation process announced on July 18, both Dr. Xie and Dr. Murphy-Kaulbeck say more time is needed for the government and their colleagues to determine the best fiscal prescription, and how it should be administered.

“I think that what would help the situation is if there was a clear transition plan from the government,” Dr. Xie said. “There is a lot of fear and uncertainty around this.”