Coping with rising taxes

A: Various taxes are expected to rise as the nation and states attempt to recover and cope with trillions of dollars of debt and deficit. Higher tax rates can reduce the future return on investment (net after-tax income) in both simple employment and practice ownership-and therefore the value of practices. However, most physicians don't manage their practices to create business value; they manage their practices to create current income, so focus on increasing income, and talk to your accountant quarterly about tax planning.