This is an issue that includes general provider taxes and specific taxes on things like cosmetic surgery or ambulatory surgery.

Minnesota, for instance, has had a health care provider tax or "sick tax" since 1993. It is currently 2 percent of gross revenues from patient services. This is a tax that adds to health care costs and has been found by both the Minnesota Department of Revenue and the Minnesota Taxpayers Association to be one of the most regressive taxes in Minnesota, hitting low-income individuals the hardest.

New Jersey, on the other hand, has put in taxes on cosmetic surgery and ambulatory surgery centers with the idea that it would provide big revenues for the state. Evidence so far has indicated that not only have these taxes failed to produce the revenues projected, the costs of administering the program have far outweighed the benefits.

AAOS continues to monitor state activity relating to the taxation of health care.