Taxing Residents

The Supreme Court heard arguments yesterday in a case with both financial and philosophical repercussions for medical schools. Employers and employees must pay a portion of their salaries to the federal government for Social Security and Medicare. Students working for the university while studying are exempt from the taxes.

In 2005, the U.S. Treasury Department ruled that medical residents do not qualify for the exemption, which was intended to support students working part-time. Medical residents work full-time and then some, so the government reasoned that they should be treated as employees and subject to the tax. At stake is $700 million in additional revenue.

The Mayo Foundation and the University of Minnesota appealed the decision, winning a round in court, but then a federal appeals court overturned the ruling. In appealing the case to the  Supreme Court, the petitioners received friend of the court briefs from a consortium of academic medical centers including Boston Medical Center.  They argue that residents are indeed students in that they attend classes, receive training, and learn about patient care.

The Supreme Court did not seem to indicate its thinking. The debate reminds me of the conflict between universities and doctoral students over unionization. In the end, many graduate students made the case that they were both students and employees and won the right to unionize. Medical residents already belong to unions, so how does that complicate the question of whether they are students or employees?

Tags: ,

9 Responses to “Taxing Residents”

  1. Very interesting information!Perfect just what I was looking for! “Justice delayed is justice denied.” by William Gladstone.

  2. You can certainly see your enthusiasm within the paintings you write. The arena hopes for more passionate writers like you who are not afraid to mention how they believe. Always go after your heart.

  3. Erinn Rosich says:

    oure so cool! I dont suppose Ive read anything like this before. So nice to find somebody with some original thoughts on this subject. realy thank you for starting this up. this website is something that is needed on the web, someone with a little originality. useful job for bringing something new to the internet!

  4. You have pretty much covered everything your post. But you didn’t mentioned few points.

  5. With all the doggone snow we have had as recently I am bound inside , fortunately there is the net, cheers for leaving me something to do

  6. I would like to thank you for the efforts you’ve put in writing this blog. I’m hoping the same high-grade site post from you in the upcoming also. In fact your creative writing skills has encouraged me to get my own web site now. Actually the blogging is spreading its wings fast. Your write up is a good example of it.

  7. Janey Burman says:

    Keep up the fantastic work, I read few articles on this site and I think that your website is real interesting and contains sets of excellent info.

  8. One important issue is that if you are searching for a education loan you may find that you will need a cosigner. There are many circumstances where this is correct because you will find that you do not use a past credit score so the financial institution will require that you have someone cosign the money for you. Great post.

  9. צביעת שיער says:

    רשת מעצבי השיער של ארי שומר מבצעת מזה זמן רב החלקה יפנית תוך התחייבות ל-100% הצלחה ותוך עדכון תדיר של החידושים והטכנולוגיות האחרונים בתחום החלקה יפנית ו החלקה ברזילאית . החלקת שיער יפנית / החלקה ברזילאית מתבצעת ע"י ארי שומר ואלכס (מנהל קניון "הבאר") בלבד, ללא הפרעת עובדים או לקוחות אחרים, תוך אבחון minute ומיומן של סוג השיער והטיפול המומלץ לו.