State Senate says no to tax on doctors

The Michigan Senate voted 32 to 4 to kill a proposal which would have placed a three percent tax on doctor’s incomes.

The bill had already been approved by the State House.

The revenue raised would have been used to leverage more federal Medicaid funds. According to Democrats who supported the tax, for every dollar raised and allocated for the programs, the federal government would send three to the state. As the state’s unemployment rate has spiraled and the economy continued to nosedive, Michigan has seen an increased demand for Medicaid. The program is partially funded by state dollars, with federal matching funds.

The bill would have raised an estimated $300 million to anemic state coffers, and would have been bolstered by an estimated federal match of $822 million.

Many doctors have opposed the bill, because they are not obligated to take Medicaid patients and thus would not be impacted by the eight percent cut to Medicaid reimbursements passed by the legislature earlier this month, says a Democratic operative.

Progress Michigan, a statewide policy advocacy group called the Senate move a terrible action.

“Virtually every day now, Sen. Mike Bishop and Senate Republicans find another way to say ‘No!’ to Michigan seniors, families and our future,” Progress Michigan Executive Director David Holtz said. “By refusing to lead on this one issue alone, Sen. Mike Bishop and the Senate Republicans will drive up health care costs, force more people to lose insurance and send more families to get their care at emergency rooms across the state. This is a complete failure of leadership and the blame belongs to Sen. Bishop and the Senate Republicans.”

While Holtz would like to lay the blame at the feet of the Republicans, the fact is only Democrats Mike Prusi of Ispheming; Mickey Switalski of Roseville, Deb Cherry of Flint and Buzz Thomas of Detroit supported the bill. Every other Democrat voted against it.