Tax Bill Isn’t All Negative News For Health Industry: Independent Doctors See Perks In Package
The legislation sharply reduces the personal income tax rate for owners of pass-through entities, which is how most physician and dental practices are organized.
Modern Healthcare:
Independent Doctors Get Sweet Deal Under GOP Tax Cut Bill
While many healthcare industry groups are unhappy about the Republican tax cut bill, primary-care physicians and dentists in independent practices may be smiling. That's because the bill, which passed Congress Wednesday, sharply reduces the personal income tax rate for owners of pass-through entities such as partnerships, Subchapter S corporations, and sole proprietorships. That's how most physician and dental practices are organized. Under the Tax Cuts and Jobs Act, owners of pass-through entities will receive a 20% deduction on their taxable income, dropping their maximum effective tax rate from the current 39.6% (or 37% under the bill) to about 29.6%. (Meyer, 12/20)
In other news on the overhaul —
Politico Pro:
GOP Fails To Pressure Hospitals On Community Benefits
Despite Republicans’ boasts about closing tax loopholes, there’s one sector that the sweeping tax reform bill mostly leaves alone: The tax-exempt hospital sector, which enjoys billions of dollars in tax breaks even as big hospitals raise prices and perform less free care. (Diamond, 12/20)
Sacramento Bee:
CA Health Insurance Costs Expected To Rise Under GOP Tax Plan
Despite successfully beating back Republican efforts to repeal and replace the Affordable Care Act, the future of the federal health care law appears uncertain after congressional Democrats were unable to defeat a provision of the GOP tax plan that dismantles the foundation on which Obamacare is built. Republicans’ $1.5 trillion tax bill scraps the so-called individual mandate in Obamacare that requires most Americans to have insurance or pay a tax penalty. (Hart, 12/20)
