Council on Government Affairs Report
Dr. Scott D. Hamilton
The Council on Governmental Affairs (COGA) met January 28th in conjunction with the 2008 Governmental Affairs Conference January 29th and 30th in Washington. This was the last meeting for our chair Dr. Rob Merrill, so two possible replacements were nominated to the BOT to consider. Dr Merrill’s dedication and leadership will be missed. Following are the topics we felt were most important to address with congress this year, in no order of importance:
- Passing an economic stimulus package that would benefit small businesses and allow immediate expensing, and accelerated depreciation, of major purchases.
- Abolishment of the Alternative Minimum Tax (AMT). This tax was passed years ago and was never meant to extend to the millions it now affects. Congress passes a “patch” to mend it every year, but it needs to be dealt with permanently, without raising income tax in other areas.
- Raising the threshold for application of the Estate Tax. Under a 2001 change in the law, the estate tax exemption level increases yearly, and the tax rate for the assets decreases on a similar schedule through 2010 at which time the tax will be zero. Then, in 2011, it increases back to its old rate of $1 million exemption and 55% tax rate. We would like to see it have continuity and raise the exemption level to at least $5 million and index it to inflation for the future.
- Currently, interest deductions on student loans phases out at income levels of $60,000 or more. We would like to see the level increased since many orthodontists graduate with debt of $300,000 or more.
- Graduate Medical Education (GME) funding has recently been cut, which curtailed dental training in hospital settings and increased debt for students; we would like to see funding reinstituted.
- SCHIP funding has been reauthorized thorough March 2008 at 200% of the Federal Poverty Level (FPL). The AAO supports the funding and encourages inclusion of primary dental care, but not necessarily orthodontics, unless it is for medically needed procedures. We would prefer the funding be left at 200% FPL, since some proposals increase it to as much as 400%, which would equal an income of roughly $80,000, thus taking many off private insurance and putting them on public roles.
- The AAO would like to see increasing health care options for small businesses. We would support Association Health Plans, HSAs, and other means by which health insurance can be made more affordable.