December 14, 2012

“We’ve literally put all of our new product development on hold … so we can afford to pay the stupid tax.” [Darleen Click]

That would be the ObamaCare tax on medical devices – everything from tongue depressors to insulin pumps.

[O]ver at Uresil, LLC, in Skokie, Ill., the layoffs have already started. The company laid off six people from its 52-person workforce this year, “primarily related” to the tax, President Lev Melinyshyn said.

“We had never laid off anybody,” he told FoxNews.com. “We bought the company in 2004, never had a layoff. In fact, even during the recession, we added jobs. … It wasn’t until this tax hit us that we had to do it.” […]

The Affordable Care Act imposed the 2.3 percent tax on medical devices with the goal of raising nearly $30 billion over the next decade. Manufacturers say the impact of the tax is far greater than meets the eye — the 2.3 percent tax is on gross sales, meaning it’s a much greater percentage of net income.

Melinyshyn, for instance, said his total tax burden on profits will rise from 43 percent to 65 percent next year.

“It’s huge,” he said. […]

The Advanced Medical Technology Association estimates that the tax ultimately could cost up to 43,000 jobs. […]

The Obama administration earlier this year defended the medical device tax, saying companies actually stand to benefit from the law. Though the 2.3 percent tax hits the industry, the department argues that the millions of new health care customers insured as a result of the law will increase the demand in hospitals to order more equipment — in turn boosting medical device companies’ profits.

See, you greedy makers of i.v. bags and heart valves, strutting around in your monocles and spats — product development? Research? Pfffffffft

Obama knows, just as you’ve made enough money, so current state-of-the-art is sufficient.

Posted by Darleen @ 7:00am
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Comments (11)

  1. they have to pay the monies for the free health cares?

    I’m confuzzled

  2. It’s the end of new product development, cause it’s too risky now.

    All hail glorious new Amerikka!

  3. they are so fucking stupid. New product development is how you become the world leader in healthcare or anything else.

  4. According to the Obama administration, “…the millions of new health care customers insured as a result of the law will increase the demand in hospitals to order more equipment — in turn boosting medical device companies’ profits. ”

    Step 1: Tax medical device companies
    Step 2: Use taxes to fund additional patient purchasing medical devices
    Step 3: Profit!

    I’m sure there’s some underpants gnome magic in there somewhere, because between steps 1 & 2 is a whole lotta bureaucratic overhead. Probably some other Obamacare regulation that limits the pricing on those medical devices that destroys an would-be profits from the magical increase in sales.

  5. Missfixit, you’re starting to get the picture.

    How dare we have better health care than Cuba!!??

  6. The Obama administration earlier this year defended the medical device tax, saying companies actually stand to benefit from the law. Though the 2.3 percent tax hits the industry, the department argues that the millions of new health care customers insured as a result of the law will increase the demand in hospitals to order more equipment — in turn boosting medical device companies’ profits.

    We’ll feed the cats to the rats and the rats to the cats and get the cat skins for nuthin’!

  7. I’m so excited that the already-over-priced medical supplies are going to cost even more now.

    A small part for my husband’s cpap mask (a seal) costs $65.

  8. Key points. Tax increases Stabenow approves of:

    A House Small Business tax subcommittee estimates that President Obama’s 5 percent hike on 940,000, small, so-called Subchapter S companies would levy $500B in tax increases and cost 700,000 jobs.

    Disapproves.

    Corporations like Stryker employ high-paying lobbyists in Washington to get senators’ attention. The small business community – individuals mostly pay Subchapter S taxes – have no such clout. “Democrats sent their letter to Reid less than three weeks after dozens of medical device industry executives ‘swarmed’ Capitol Hill in a lobbying push that resulted in more than 60 different meetings with legislators,” reports The Daily Caller.

  9. Pingback: Obamacare’s chickens coming home to roast, err…Roost. | On the North River

  10. Easy enough to explain. This device tax is much like the ‘sin taxes’ on alcohol and cigarettes. People using medical devices are, by definition, not fitting in Obama’s ‘healthy enough to fully cover’ optimal health and age range and need be discouraged from taking up valuable resources. Including that pressurized CPAP air.

    Brave New World, indeed.

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