State Privilege Tax Talking Points
Only one state has the privilege to work tax; however, other states have made an attempt to pass this type of tax. In times of financial crisis, more states may see this as a way to increase funds.
What can practitioners do to ensure that they are not burdened with this type of tax?
- Be aware of what is going on in your state and get involved with your state association
- Participate during your state association’s advocacy day
- Ask your state association to advocate against this tax if it is proposed in your state
- Respond to requests from ASHA and your state association to send letters to your legislators and/or regulators on this issue.
- Attend hearings and provide testimony on how the issue affects you personally.
- Leave your business card and the ASHA issue brief on state privilege tax when attending meetings.
How would this tax impact the practice of audiology and speech-language pathology?
- Shortage of Providers: A professional tax would lead to an increased shortage of providers in the state because additional taxing discourages professionals from moving into the state.
- New Graduates Leaving the State: A professional tax would discourage new graduates from remaining in the state; thereby, decreasing the pool of highly qualified professionals available to meet the needs in your state.
- Telepractice: Out-of-state providers would no longer offer services due to the burden of this excessive tax. This will impact children in the public schools who receive qualify for Individualized Education Program under the Individuals with Disabilities Education Act.
- Decreased Tax Revenue: Businesses that are currently providing audiology and speech-language pathology services in the state may reconsider providing these services and relocate out-of-state to avoid paying the tax; thereby, decreasing tax revenue.
