The tax is bad enough, but it will be passed along to your health insurance rates.
Medical device manufacturers know that once Obamacare is in place, new devices that cost more than the old ones will not be allowed.
So the manufacturers are trying to get their last generation systems into the market before 2013.
Once Obamacare is in place, manufacturers who want to make a profit will have to sell the current generation systems for less....that means reducing manufacturing costs without changing the device (that would require FDA approval).
As a result, most of the manufacturers will move assembly overseas to reduce costs.
The excise tax was a component of the absurd steps to construct the facade that Obamacare is revenue-”neutral.” That tax absolutely needs to go away.
A little more of OBAMA and Zimbabwe will begin to look like a retirement haven. IMHO
that’s the tax and spend, democrat plantation for you.
we’ve got to get someone that understands the economy in the presidency.
In a way what this story really demonstrates is that Dems and perhaps some Repubs as well don’t get a fundamental problem in the U.S., i.e., the gov’t needs to find new sources of revenue, but anytime it passes a tax on business, business response is to do a cost/benefit analysis between paying the tax or moving offshore. To an ever increasing extent the answer that pops up from the analysis is to “move”. One of the obvious reasons this is happening is that rather than be honest about the need to both raise revenue and cut spending, the pols ignore the spending part and seek to raise revenues. But worse, rather than be honest and raise taxes on individuals through a VAT tax, they take the so-called “stealth” route and raise taxes on businesses who then, of course, pass the tax on to the consumer, or.......depending on the type of tax and the size of the tax, move offshore to dodge the tax altogether. There’s no easy way out of the 15 trillion dollar hole and this is a Congress of Cowards.
I read once that if you want to say add a new hole inthe frame of a wheelchair say for example you want to make it more adjustable, the newly modified wheen chair is considered a completely new model and has to go through an entire new round of testing through the FDA as if none of the previous testing mattered at all....
This is part of the problem with the medical equipment industry, innovation is smothered by government regulations.