A new tax on doctors flatlined in the Michigan Senate yesterday, despite multiple attempts by Gov. Jennifer Granholm to resuscitate it. The 3% tax hike, which has been a priority of Granholm and some legislators, suffered a clear and bipartisan defeat when Senators rejected it by a whopping 32-4.

The misnamed “Quality Assurance Assessment Program” (QAAP) was a $300 million tax hike that would have increased the cost of medical care by forcing doctors to pass the tax on to patients and insurance companies, ultimately raising premiums. Proponents argued that the tax would also bring in another $500 million in matching federal Medicaid money. However, federal matching aid is certainly not “free money.” It saddles the nation – Michigan included – with higher debt or higher taxes.
The move is a win for taxpayers, families and doctors, but there are still numerous tax hikes on the table – including on sporting events, cigarettes, bottled water, and more. Granholm has pushed for the hikes despite stating in 2007 that she was done raising taxes, and repeating in 2008, “You will not see a tax increase from me in this year coming up.” For your entertainment, click here to hear Granholm recently say she regrets making those commitments; in other words, lying to Michiganders.
Michigan residents: CLICK HERE to write your lawmaker and tell them to continue their opposition to tax hikes. Also, click here for ATR’s recent letter to the Senate.

(photo by brykmantra)