Wednesday, October 14, 2009

Michigan House Democrats' Anti-Doctors Plot

A great new proposal to solve Michigan's medicare and budget deficit - single out a group of people based on their profession and levy a 3% tax on their income.

The Detroit News Editorial: Physician tax would be unhealthy
Michigan doctors would be hit with a 3 percent gross receipts tax under a plan by House Democrats to create new state revenues and avoid some of the painful cuts in the 2010 state budget. This poorly considered plan to revise an already passed departmental budget for community health, shifting more of the cost of Medicaid from the state to the federal government, should be dropped.

The goal is to leverage additional federal funds with the state physician tax. The proposal is strongly opposed by the state's two major physician organizations, which point out that doctors already pay income, personal property, small business and sales taxes.

They see it as a hindrance to physician recruitment and are rightly skeptical the promised federal bounty would materialize, once they've anted up the $300 million to $400 million this proposed levy is designed to raise. Skepticism is understandable when lawmakers continue to shift funds around and dream up boutique taxes to balance the budget without making needed government reforms. . . .


Hmmm, everyone remember back in Econ 101 where you learn that when you tax something you get less of it? Once Michigan scares the great doctors away, the state's outstanding health care system is going to decline.

Of course its politically appealing for the Democrats to go after "rich" doctors, (never-mind the crushing student debt a lot of them are starting out with so if this passes new doctors are less likely to come here - great). But once we get started with doctors what stops the Dems from going after lawyers, accountants, architects and heck there's a lot of well off skilled tradesmen and small businessmen just waiting to be taxed.

Just slightly more sophisticated approach to class warfare from the Democrats folks, nothing useful to see here.

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