The Michigan Osteopathic Association today warned of potentially dire consequences from a proposed 4-percent tax on physicians’ income currently being debated in the Michigan House of Representatives.
One of the association’
MOA Interim Executive Director Fred Anderson, J.D. believes the new tax could be devastating to our already overburdened health care system. Michigan is third in the nation behind New York and Pennsylvania in physician training, but has trouble convincing physicians to stay in the state after graduation.
“We already have a shortage of physicians and this new tax will only compound that problem,” he said. “If a doctor can locate in another state with better weather and better economic conditions while avoiding this tax, why wouldn’t he or she do that?”
“New primary care physicians, with their enormous educational debt loads, will be hit especially hard by the tax, seeing their incomes subject to further gross tax assessment,”
The new tax will also hurt Michigan’s ability to attract specialists, as their services are in high demand. States with lower tax burdens will have a decided advantage.
Anderson also noted that health care is an essential service, much like fire, EMS and police protection and education that should be paid for through general tax revenues, just like other basic services. He said the tax is a burden that unfairly targets providers.
“Providing health care for the 1.7 million Michigan residents who rely on Medicaid is a core responsibility of state government and should be funded by the general fund,” he said.
“We wouldn’t tax teachers to teach, firefighters to fight fires or police officers to enforce the laws. Why would we tax physicians to provide health care?,” he asked.
About the MOA
The Michigan Osteopathic Association represents more than 7,000 osteopathic physicians and students and promotes osteopathic medicine in Michigan by helping to shape the health care delivery system to better serve the community. To learn more about the MOA and osteopathic medicine, visit the MOA website at www.mi-osteopathic.org.
