Scottsdale – Can you imagine a government that says they want to reduce the costs of health care and then goes on to create a series of new taxes to pay for it all? Well, which is it? Raise or lower costs?

That is exactly what the U.S. Senate Democrats have done. They want to raise your taxes to fund a less expensive form of health care? Does that even make sense? It looks like the government is saying “pay us a bunch of money now (via taxes), and you’ll feel great later, because you won’t pay so much for your health care”. By the way, this is literal! Pay NOW, get benefits in 2013.

The current plan raises taxes on small businesses 8%, adds a new value-added-tax of 5% on the sale of all new products, taxes over-the-counter medications, taxes medical devices, and taxes drugs companies. The plan also calls for an increase in Medicaid benefits and will require individual states to raise taxes to pay for these medical benefits. California alone will have to generate 10 billion dollars to pay for this Medicaid expansion.

To top it all off, the Senate bill slapped the faces of all American middle class women by adding a 5% tax on elective cosmetic surgery procedures. I already mentioned (on the blog) that this is an unfair and sexist tax against women that make up 86% of the plastic surgery population. These types of taxes have already failed in some states, like New Jersey.

NJ is the only state to adopt a tax on elective medical procedures. A 6% tax on elective medical procedures was enacted in 2004. The NJ Department of Taxation experienced a 59% shortfall on projected revenue estimates. New Jersey Assemblyman Joseph Cryan, the sponsor of the 2004 bill, is now leading efforts to repeal the tax. This experience shows that these types of taxes are not going to work!

The big problem with this type of tax is that it is arbitrary and difficult to administer. Evidence in NJ, demonstrates that the line between “cosmetic” and “reconstructive” surgery is not always clear and leaves the determination of medical necessity up to state tax auditors. Can you imagine it now – a bunch of government cronies – telling you that your surgery is cosmetic and taxable as opposed to reconstructive? This is a completely inappropriate proposition for any government to hold over those they represent.

The part I hate the most about this bill is that it makes physicians tax collectors. Not only does that bill place physicians in the role of tax collector, it also holds physicians liable should an individual fail or refuse to pay the tax. Arguing about taxes and money with patients? What effects will that have on the doctor-patient relationship, I wonder?

The bill, if passed, will start taxing Americans on January 1, 2010. Remember their motto: “pay NOW, Benefits 2013″. This type of tax will place an incredible burden on physician offices, at a time when the economic recovery is very weak.

I believe that taxes on physicians and patients, in any form, will have deleterious effects on health care costs and limit access to quality patient care. I believe all Americans should oppose any legislation that increases costs and taxes and makes access to quality health care worse. Stay tuned to the blog to find out what you can do to Stop the Cosmetic Tax.