The Doctor Tax
October 14, 2009 – 5:23 pmMichigan’s lack of leadership is on display again. This time, in the face of a prolonged and deepening budget crisis, the State House has passed a ‘Doctor Tax’ to help fund Medicaid, which suffers from reductions in federal support via tax dollars repatriated to Michigan. The plan, which must still pass the State Senate and then be signed into law, would impose a 3% income tax on doctors. The 3% tax would be in addition to the regular state income tax. (The total hit may be as high as 9%, however, since it applies to gross income, before expenses, and many doctors are self-employed, own their practices, et cetera.)
The idea is so ludicrous that no further comment should be necessary before dismissing it with derision. Nonetheless, some thoughts: Why should doctors be singled out? Who made them their patients’ keeper? Why not extend the idea – tax teachers to restore cuts to the state per=pupil funding to public school why not tax professors to help fund the endangered ‘Michigan Promise’ scholarship program? Why not tax legislators (who gave themselves a fat 38% raise a few years ago, with strings attached to ensure that it could not be easily undone) to help balance the budget? How about a lawyer tax?
Singling out a small group of ‘rich people’ to fund bleeding-heart priorities is as bad, policy-wise as it is morally. If doctors are rich enough to be soaked for practicing medicine in Michigan, then, absent some tie of obligation, they can afford to leave, too. If this foolish notion becomes law – and it stands a very good chance – then I hope that as many as can leave do so. Even if I and mine must suffer as a result, I will take solace, both from knowing that some of the intended victims escaped, as well as from satisfaction at seeing Economics 101 taught so forcefully to an electorate responsible for voting in the current crop of incompetents, petty tyrants and grafters.
4 Responses to “The Doctor Tax”
Did you see the dismemberment of Jennifer Granholm of Fox News Sunday? She was shocked, SHOCKED I say, that someone (Steve Wynn) actually knows and would dare to describe how job creation works.
ssgconway reply on October 19th, 2009 6:58 pm:
I missed that one (I avoid TV like swine flu shots). I doubt that she is much different than the run of the mill of our rulers, however, in understanding little of how the world works beyond the shadow of the Capitol dome. They may be nice (she is), even well-intentioned in some cases, but no one is smart or wise enough to be the Invisible Hand of economics, though they think otherwise.
By Nik on Oct 14, 2009
I am a young physician. A non-primary caregiver, but hospital driven specialty. It had been my intention to stay in MI and practice, as this is where my family is. But, as I will be in my mid-thirties by the time I have fully completed my training. Income and paying off my large medical school debt is a high priority. I think 3% of my gross income will be better spent paying off loans than going to a dying and highly abused Medicaid system. I will set up shop somewhere else. Doctors are caring people, not known for our business sense, but we are not stupid. I guarantee I will not be the only one to leave this state. Too bad, it is a wonderful place to live and I will miss my family.
ssgconway reply on October 18th, 2009 7:35 am:
I will be sorry that Michigan must lose you, but I certainly understand that you didn’t spend 80 hours a week in school, racking up heavy debt, with the prospect of burdensome malpractice premiums in your future, so that you could be singled out for this pernicious tax. Leaving family behind is a hard thing, and I am sorry that our government forces you to consider it. I wish you the best in whatever place you find that welcomes, rather than abuses, hard work and merit.
By k on Oct 17, 2009