Skip to comments.Cook Medical shelves Midwest expansion plans
Posted on 07/28/2012 8:01:32 AM PDT by DFG
Cook Medical Inc. had been planning to open five new manufacturing plants over the next five years in small communities around the Midwest, including Indiana, but has shelved those plans because of the hit it will take from a new U.S. tax on medical devices.
The Bloomington-based medical device maker estimates it will pay between $20 million and $30 million once the tax takes effect in January, Pete Yonkman, executive vice president of strategic business units at Cook Medical, said this week.
The 2.3-percent tax on sales of all medical devices was created as part of President Obamas 2010 health reform law to help pay for its expansion of health insurance coverage to as many as 30 million more Americans. The tax is projected to raised about $2.9 billion per year.
It is a challenge for us, no doubt, Yonkman said in an interview after the IBJ Life Sciences Power Breakfast on Wednesday (see video below). We have fewer resources to be able to spend on those kinds of projects.
(Excerpt) Read more at ibj.com ...
Another unexpected result of socialized medicine. Who could have guessed that taking medical devices would kill jobs manufacturing those devices and raise the cost of those medical devices?
Oops, that's taxing medical device.
I suppose the jobs NOT created because of this halt to opening new facilities won’t be counted since they never existed. Yup, the great job creator. Maybe the folks who might have been employed at these new facilities can find jobs in the “green sector”. But only for a few months until they close their doors as a long string of them continue to fail despite the best efforts of the CLOWNmander in chief to push them while insuring those evil coal fired plants are shut down. Sorry, I don’t need any more change at this point.
Helping keep mankind warm for 65 years.
hey ho, way to go, Barack-o
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.