Calif. provider tax idea is a bad idea that could spread across the country

Regarding "Physician revenue tax draws heat in California universal care proposal" (Article, Jan. 29): Perhaps, a 2% tax on physician gross revenues doesn't go far enough. Gov. Arnold Schwarzenegger should impose a 2% tax on the gross revenues of all health care insurers, pharmaceutical, medical equipment and medical suppliers, and a 2% tax on the gross revenues of all tort attorneys who include medical liability as part of their practices.

We physicians can't be so naive as to believe that increases in Medi-Cal payment rates will cover the cost of the tax. If that were so, Schwarzenegger's plan should just take the planned tax revenues out of the increased Medi-Cal payments and save the millions of dollars required for claims processing and tax collecting expenses.

The truth is a provider tax is included because politicians know it is an easy cash cow. Sure, have the rich pay for health care for the poor. We physicians are generally generous to a fault and politically naive. But even if you taxed physicians at 100% of net revenues, it wouldn't match the potential revenues of a 1% tax on gross revenues of either the insurance industry or pharmaceutical industry.

Politicians just know that the physicians don't have lobbyists who can squawk as loudly, or peel off the Franklins as easily, as do the insurance, medical tort and pharmaceutical industries. Physicians shouldn't be forced into indentured servitude by shortsighted and unfair political initiatives slabbed together by special interest lobbies.

California physicians must stand together and steadfast against a health care provider tax. This could be a model for universal health care nationwide.

Universal health care will require higher taxes, but that tax burden should be spread fairly across the entire population.

Benjamin T. Hu, MD, Coupeville, Wash.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/02/26/edlt0226.htm.