Tuesday, October 13, 2009

Michigan Dems propose 3% Doctor Tax

When Michigan House Democrats shook the tax tree last week, a 3% tax on the gross receipts of the state's approximately 28,000 physicians dropped. Nothing on other professions.

Just doctors. And a lot of them are grumbling as the bill heads to the Senate for a hearing next week.

Dr. Betty Chu said the tax would cost $72,000 for her four-doctor obstetrics and gynecology practice in Clarkston and Utica. They treat only a handful of Medicaid patients. Already, she said, she pays a $20,000 state business tax.

"It's like taxing teachers to pay for schools," said Chu, 38.

Doctors generally would have to absorb the tax, rather than raise their fees, said Jessy Sielski, spokeman for the Michigan State Medical Society, because rates are set by agreements with insurers.