Hospitals and medical schools arguing for a tax exemption reasoned that residents are essentially students, who do qualify for an exemption.
Payroll taxes levied against residents are estimated at $700 million per year, half of which is paid by hospitals as employers.
“At a time when our members are looking at reduced resources, we could have used these resources for other things, like patient care and education programs,” said Ivy Baer, regulatory counsel at the Association of American Medical Colleges, which represents teaching hospitals.
Read the Wall Street Journal report on payroll taxes for residents.
Read more coverage of teaching hospitals’ finances:
– Federal Debt Panel Proposes 20 Major Cuts for Hospitals, Physicians
– 10 Key Trends for Hospitals in 2011
– Teaching Hospitals Face New Round of Duty Hour Restrictions on Residents
