“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.Tags: layoffs, medical device tax, obamacare