The industry responsible for pacemakers, chemotherapy systems and defibrillators is now facing a heavy tax that could cripple its ability to provide life-sustaining products. The Affordable Care Act’s tax on medical devices will ruin an industry that is productive and drives the economy, says Evan Bayh, a former governor and U.S. senator from Indiana.
- More than 400,000 employees are employed in the medical device industry, not to mention another 2 million for those involved in supply and distribution.
- Average compensation is $58,188 in this industry.
- In contrast, the national average for all employment is $41,673.
- The U.S. device industry earned $5.4 billion more in exports than on imports of such devices.
The average American derives immense benefits from a thriving medical device industry. Much advancement has been made in areas such as: artificial hips and knees, devices for cancer treatment, vascular surgery, and more. However, all that is threatened by the Affordable Care Act that was recently upheld by the Supreme Court.
- There will now be a 2.3 percent tax on medical device sales.
- This equals a 15 percent tax on profits.
- Add this to a 35 percent corporate tax and state corporate taxes, the industry will have a tax rate that exceeds 50 percent.
- The result of this is being felt already — for example, Cook Medical in Indiana has cancelled plans to build new facilities annually.
- Device maker Zimmer plans to lay off 450 workers while another device maker, Stryker, is anticipating a layoff of 1,000 workers.
- Compounding the job loss is the fact that production is moving overseas to Europe and Asia, permanently taking U.S. jobs away.
The tax was imposed under the theory that the addition of newly insured patients would cause an increase in medical devices being sold. However, that calculation ignores that medical device consumers are already covered by Medicare, Medicaid and private insurers. According to the Congressional Budget Office, there will be no increase in sales to offset the added $30 billion cost.
The tax increase will come at the expense of research and development or operations of many medical device companies. As a result, the industry will lose innovative vigor that gave it a competitive edge in the international arena.
Source: Evan Bayh, “Evan Bayh: ObamaCare’s Tax Raid on Medical Devices,” Wall Street Journal, September 27, 2012.
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Hasn’t both senator Bayh and budy Hatch been recieving large medacare sums for their pharmaceuticals interest including these devices. I wonder if they are concerned about their profits over their concerns for those that need the work and those that need the devices.
Damned good use of your morning marching orders from the Huffington Post.
You really need to expand your sources.
Come on Dan you are aware that the major propaganda outlets are six global companies. To conquer you must first divide, funny how those six don,t give info on other choices..
Up here in the mile high aNd it is a real blood bath the “two” parties are really going at it in this swing state, the funny thing about it is both candidates have a past record and aside from their bs their records show little difference.
You go ahead and believe it is healthy for the nation to be divided some day we will be united, let’s hope it is not a false flag that unites us.
And you get your info from AOL Number 2 propagandist.
Saw a Gary Johnson Ad on Fox…… He is putting his message out there,
And by the way….. this country has always be divided…. Day one until now. That is why it works. Its called a Republic. If everyone were united on every issue it would be called a dictatorship.
War is Peace
Not for a dictatorship, but my observation is we are divided like never before, the vile and out right hate is getting carried away
Now back to the local PC Nazis, and the rest of the greedy bastards
Looking over rommeys record what stands him apart from bushama, guns, romababa care, taxes, economy, what is the difference in their actual record? Who is the libera?
Are you NEW to our Country young Fellow? Have you heard of the 1960s? Have you heard of Kent State? Have you heard of the Bonus March? Did you miss the Civil Rights era all together? Did you miss Jim Crow and the Klu Klux Klan? How about prohibition or the Sedition Act of 1917? Did you miss the great battles over Silver and Gold? Did you miss the Civil War and the Draft Riots of New York? Did you forget Slavery? How about the whiskey rebellion?
Let me tell my dear friend this is not the most divided we have ever been…. Not Even Close. Get a Grip.
Got me, I guess I will have to go with so evenly divided some where around the 47% s that live off the government, plus the 15% that work for big brother, oops that isn’t working either. I surrender
Are we having fun yet?
The Los Angeles Times bombing was the purposeful dynamiting of the Los Angeles Times building in Los Angeles, California, on October 1, 1910 by a union member belonging to the International Association of Bridge and Structural Iron Workers. The explosion started a fire which killed 21 newspaper employees and injured 100 more. Termed the “crime of the century” by the Times, brothers John J. (“J.J.”) and James B. (“J.B.”) McNamara were arrested in April 1911 for the crime. Their trial became a cause célèbre for the American labor movement. J.B. admitted to setting the explosive, was convicted, and sentenced to life in prison. J.J. was sentenced to 15 years in prison for bombing a local iron manufacturing plant, and returned to the Iron Workers union as an organizer.
James and John McNamara 1910