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Dr. Coates is a veterinarian based in the other “Sunshine State” – that's Colorado to the rest of you – where she lives and plays with a varied range of animals. She shares her professional and personal experiences, Monday through Friday, here on petMD's blog, the Fully Vetted. Log in for your daily dose of her insight and wisdom.

 

Big Gov Moves to Tax Our Littlest Members of Society

April 08, 2011 / (9) comments


I've been traveling again. This time to California to lecture at Western University's new-ish veterinary school, which kind of left me bereft of a planned Friday post, so distracted was I by the charms of Claremont, California.

 

Luckily, my hosts and I got to talking on all kinds of veterinary topics that are specific to California. I was reminded of a late Cali issue of a couple of years ago: The Governator's proposal to add a sales tax on veterinary services — as if Californians weren’t already suffering from the highest rates for veterinary care in the nation.

But it's not just California dreaming. Three other states already tax veterinary medical services directly: Hawaii, South Dakota and New Mexico. They make sure that when you pay your veterinarian your veterinarian plays accountant for the state and collects these extra revenues on your behalf.

California's measure turned out to be dead in the water. Still, that hasn't kept other states from getting in on the act. After all, increasing revenues where you might not miss it is every bit as popular these days as cutting Medicare funding.

In case you didn’t know, it’s generally considered a given that healthcare services are not taxed. Whether you’re in for a tummy tuck or an angiogram there’s no sales tax applied. Prescription drugs are similarly exempt.

But even as Governor Schwarzenegger’s late plan died its much-deserved death, momentum for similar taxation emerged from the concept that some medical services are not "essential," and that these, in particular, deserve to be taxed.

Now, I have no problem putting a sales tax on non-prescription products as well as on services such as grooming. If "non-essential" services such as getting your drain unclogged by a plumber or having your muffler replaced are also taxed, I figure these niceties deserve it, too. But veterinary services?

It's my wholehearted belief that these services should be off the tax table, along with all prescription drugs. And that's not only because I believe pets are family — which I do — but because veterinarians are an important part of the entire healthcare system, and need to be acknowledged as such.

After all, threats to human health often start in animal populations — everything from viruses to tainted foods often find their ground zero in veterinary settings. Hence, why we need to keep our veterinarians as part of the public health team, which is largely why we don’t need any more barriers to keeping people from availing themselves of veterinary services.

And there's more that meets the eye on these veterinary tax proposals. Consider that animal agriculture uses veterinary services, too. How will that be received by the animal agriculture industry? I'll bet their lobbyists are already looking in the mirror, Taxi Driver-style, repeating to themselves, "You talkin’ to ME?"

Sure, animal agriculture may get spared in the end. After all, this plan is still in the works. But if legislators anywhere manage to get their way with either branch of the veterinary tree (companion or agriculture animal) I think it's only fair that we start taxing cosmetic surgery services — something our legislators are almost assuredly more likely to consume with wilder abandon than the rest of us.

 

 

Dr. Patty Khuly

 

 

Pic of the day: Some dogs just aren't cut out for tax law by cdk

 

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COMMENTS (9)
1
Taxation
by on 04/08/2011 06:35am

You hit a nerve on this one, Dr. Khuly.

Due to their own mismanagement of funds for years, there doesn't seem to be a government around that isn't trying to figure out how to squeeze every last dime from us.

Any time there's an article that talks about slashing government budgets, they always threaten the citizenry with a cut in police and firefighting services. What a political ploy! I have no doubt there are other things that could be cut. When they travel, do they *really* need to stay in 5-star hotels and should they be allowed to voucher liquor with their meals? Do they travel coach or first class?

If a bill would be passed taxing any type of animal services but exempting agriculture, would that exempt puppy and kitten mills? Probably.

2
Taxes in British Columbia
by on 04/08/2011 09:39am

We pay a 12% tax on veterinary services up here in BC. That sure ramps the bill up to a whole other level. I'm sure it puts services beyond some people.

3
Pet-Kids-Taxes
by on 04/08/2011 10:22am

Gov, Blows our Tax dollars-now wants more and more, while they gave them-self raises. OK Few are not getting paid...never-mind-they-are-rich-already and looks good for another Vote-in, Hey wake-up, VOTE these Blood sucker-out or keep them maybe you like gaving our hard earn money to Banks, etc, so they can forclose, on good hard working AMERICANS who lost their jobs....Yep Doc. just open a can of worms..need to go Fishing no-body-listening anyway. How Sad for us all.

4
Lil' Governator
by on 04/08/2011 12:05pm

Well Dr. Patty,
As you know, our used teabag of a governator will be trying to tax the s**t out of us, directly or indirectly by handing out more unfunded mandates to counties, while giving big Corp. all the tax breaks they could ever ask for. I would not be surprised if this might raise it's ugly head here too. In times of trouble, it's sort of a maxim to Kick the Dog.

..........Watch all the teachers flee the state......there they go----->>

5
Taxing Vet Services
by on 04/08/2011 02:00pm

Georgia tried to do this. Vets marshalled their resources and got their clients to bombard their state reps with valid reasons to NOT tax these services. It worked. I already pay sales tax on pet meds. Can't imagine having to pay another 6+% on a large bill like surgery. People are still struggling; let's not make it any harder to pay for these necessary services.

Corporate welfare is alive and well. Quit giving my hard earned $$$ to profitable companies. They just spend it hiring lobbyists to avoid paying taxes at all.

We need an accounting of where all our $$ has gone and why we're in such debt. Can anyone say spending spree?

6
Good points!
by on 04/08/2011 02:32pm

Thank you for bringing this to light. I wholeheartedly agree with your point that veterinarians need to be acknowledged more. It's so frustrating for an MD to inform their vet that "Well, I'm a *real* doctor, and that's not how we treat our patients." They would be more on our side in this battle though, I would think.

The complaint we hear most often is how expensive veterinary services are. Our prices are comparable to other clinics in the area, as we like to stay competitive. I can't imagine how much worse it would be for our clients if they started taxing what can already be expensive treatments.

7
I wouldn't be surprised
by on 04/08/2011 10:33pm

I truly would not be surprised if states pass tax on veterinary services while exempting big agriculture. This is the trend now.

To address budget crises, governments at all levels are looking to squeeze every last bit of blood from those in society least able to absorb more hardship, while continuing to warp our laws to benefit the already rich and the corporations.

The way we are going life in America will soon be like living in a scene from a Dickens novel, in which poor beggar children are teeming on the streets (maybe begging for food for their dogs . . . ) while wealthy scrooges count their growing mountains of wealth in penthouses above.

Welcome to capitalism run amok.

Where the little guy pays for everything, and the big guy laughs all the way to the bank.

So, tax "regular folks" needs including vet care for their beloved pets -- milk em for all they got -- as long as heaven forbid, neither GE nor big oil nor big Ag have to pay much -- if any -- tax at all.

8
I'm surprised...
by on 04/10/2011 09:01am

...that Americans DON'T pay tax on vet and medical services. In Canada we have always done so (last 20 years, at least).
Considers yourselves lucky!

9
Here it comes in FL
by on 04/12/2011 07:01am

4-11 Editorial in Tampa Trib complained about the lack of leadership in addressing the budget shortfall, noting that funding has been cut drastically for education and numerous services that affect the sick, poor and disabled. Then they rail about tax exemptions that ought to be axed............like animal feeds........for horses for recreation.

As if there weren't already too many horses starving or being put down because owners could no longer afford to feed them and there's no room in rescue.

As if balancing the budget on the backs of pet owners makes the plight of the sick, poor and disabled better. As if they would restore funding to any of the human services they cut if they could tax recreational horse food. As if the choice must be between people and animals.

I'm sure they didn't pick this example out of the air........there must be rumblings. Gotta do something you know. FL supposedly has one of the highest corporate tax rates - gotta cut that to encourage jobs.......as if they don't know that the source of jobs are small biz, not giant corporations.

I'm sick of these people, and I want new ones.

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About fully vetted

Patty Khuly, VMD, MBA

Photo of Dr Khuly

Dr. Khuly is a former petMD blogger and small animal veterinarian in Miami, Florida, where she practices medicine at Sunset Animal Clinic and serves on the board of the South Florida Veterinary Medical Association. She is a graduate of Wellesley College, the University of Pennsylvania School of Veterinary Medicine, and The Wharton School of Business.

As a significant sideline, she writes...a lot. She authors pet health columns for USA Today, The Miami Herald and Vetstreet. She also writes a popular monthly column for Veterinary Practice News and serves as regular contributor to Veterinary Economics, The Bark, and the Veterinary News Network.

Dr. Khuly lives in South Miami with her brood of hens, goats, dogs, cats...and humans.

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