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March 17, 2021 Hon. Ben Chipman, Senate Chair

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March 17, 2021 Hon. Ben Chipman, Senate Chair ANN R. ROBINSON, ESQ. Merrill’s Wharf 254 Commercial Street Portland, ME 04101 157 Capitol Street, Suite 3 Augusta, ME 04330 PH 207.791.1186 FX 207.791.1350 [email protected] pierceatwood.com March 17, 2021 Hon. Ben Chipman, Senate Chair Hon. Maureen Terry, House Chair Joint Standing Committee on Taxation 100 State House Station Augusta, Maine 04333 RE: L.D. 498, An Act To Reauthorize a 3 Percent Tax on Income over $200,000 To Lift All Maine Workers out of Poverty; and L.D. 501, An Act To Amend Maine's Corporate Income Tax by Increasing the Top Rate from 8.93 Percent to 12.4 Percent Dear Senator Chipman and Representative Terry: I am writing to respond to a request for additional information that I received following my testimony on behalf of Spectrum Healthcare Partners at the public hearing on L.D.s 498 and 501. The question was whether we have any data that compares physician recruitment levels in Maine to those of other states with more favorable tax policies and economic conditions. We do not have data from national surveys or reports. However, Spectrum Healthcare does retain annual data pertaining to its own percentage rate of physician employment offer acceptances versus total offers extended, as well as information gleaned from interviews with applicants, and from discussions with them regarding their decisions on the employment offers extended to them. In 2019, a total of 37 offers were extended to physician candidates. Of those candidates, 20 (54%) declined. In 2020, a total of 36 offers were extended, and 18 (50%) declined. While there are certainly various factors that bear upon a given candidate’s decision to reject an offer, Spectrum Healthcare’s experience in speaking with candidates during the recruitment process has been that salary potential in Maine versus other states, along with comparative attendant tax consequences, is a meaningful factor in a candidate’s ultimate decision. Certainly, the empirical data, alone, demonstrates that physician recruitment is a highly competitive process. We wish to take this opportunity to reiterate that physicians emerge from medical school with substantial debt, followed by several years of significantly reduced earnings during residency. Thus, compensation and cost of living for entry level physicians is a significant issue as they consider how to begin repaying it. We hope that this additional information is helpful to the committee. Again, we urge the committee to reject LDs 498 and 501. 12946147.1 Taxation Committee March 17, 2021 Page 2 Thank you for your consideration of our comments. Sincerely yours, Ann R. Robinson Cc: Senator Nate Libby Senator Matthew Pouliot Representative Bruce Bickford Representative Micky Carmichael Representative Benjamin Collings Representative Lori Gramlich Representative Jeffery Hanley Representative Ted Kryzak Representative Ann Matlack Representative Joe Perry Representative Melanie Sachs 12946147.1 .
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