Obamacare's Medical Device Tax Kills Jobs

ATR ^ | 2012-06-05 | Justin Sykes

[92nina]

Following close on the heels of the latest dismal jobs report this week is a House vote to repeal the Medical Device Tax. The Protect Medical Innovation Act, or H.R. 436, was introduced by Representative Erik Paulsen (R-MN) and thanks to bipartisan support, including 233 co-sponsors, was approved by the Ways & Means Committee by a vote of 23-11 last week. H.R. 436 will now go to the House floor for a vote sometime this week.

H.R. 436 seeks to repeal the Medical Device Excise Tax included as part of Obamacare legislation. As part of the Obamacare bill, a 2.3 percent tax increase on medical device manufacturers will begin in 2013, and could equate to $29 billion in additional taxes on medical device manufacturers, a cost which will inevitably be passed to the consumer. As H.R. 436 proceeds to the floor this week for a vote, House members on both sides of the aisle should vote in support of this repeal effort in order to protect healthcare manufacturing jobs, the healthcare manufacturing industry, and innovative efforts to improve healthcare in the United States.

The Employment Situation Summary released by the Bureau of Labor Statistics last week evidenced a stagnant unemployment rate of 8.2 percent under President Obama. However, the two sectors showing upward trends in employment, healthcare and manufacturing seem to be the targeted industries under Obamacare. Last month the healthcare industry added 33,000 jobs, with the manufacturing sector adding an additional 12,000 jobs to the labor force for a total of 45,000 jobs. If the Medical Device Tax goes forward this week, "the tax could result in job losses in excess of 43,000." The Medical Device Tax under Obamacare would not only work a direct burden on job creation, but would also work a hardship on the Medical Device Manufacturing Industry and create a virtually impenetrable economic barrier to innovation, placing most innovators in the red.

The industry as a whole would suffer as the Medical Device Tax would make for a $3 billion increase in taxes paid by medical device firms. The tax increase would cripple domestic medical manufacturers, leading to cost-cutting measures including job loss and outsourcing of medical manufacturing jobs and plants. Additionally, the $3 billion tax increase would inevitably lead to manufacturing costs being passed along to consumers and patients leading to increases in the costs of everything from bedpans to tongue depressors.

The effect the Medical Device Tax would have on innovators in the medical field is that medical device manufacturers may end up paying taxes on "devices sold at a loss." For example, Analogic, which specializes in innovative medical technology production, earned $3.7 million in net income last year. Under Obama's Medical Device Tax, Analogic would have paid roughly $7.5 million in taxes last year, amounting to a $3.8 million loss. The effect of this tax is unsustainable, killing innovation and jobs.

Thus, the negative effect the Medical Device Tax under Obamacare would have would be to discourage medical innovation, while also cutting job growth in two industries vital to the American economy. House members should vote in support of H.R. 436 this week in an effort to support American job growth and encourage medical innovation in the United States.

Read more: http://atr.org/obamacares-medical-device-tax-kills-jobs-a6932#ixzz1xEnSFsxx

[92nina]

Part of the Obamacare bill, a 2.3 percent tax increase on medical device manufacturers, will begin in 2013, and could equate to $29 billion in additional taxes.

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious

[massgopguy]

MA Moonbats are attacking Scott Brown for being against this because it will kill jobs at the 400 Medical Device Manufacturers in MA who are “his buddies”. Then they attack him on not creating jobs in MA.

[Mr. K]

what in the HELL were they thinking???

If anything, Medical Devices should be EXEMPT from ALL TAXES- not given an extra tax......

[anoldafvet]

I'm one of the people who lost their jobs because of this tax. My company calculated the cost, then fired enough high salary people to cover it, end of problem.

The RATS who wrote this bill were apparently unconcerned that modern medical devices LOWER the cost of health care by eliminating the need for expensive surgury like bypasses and gall bladder operations. Stents are done on an outpatient basis instead of spending several weeks in the hospital.

[PA Engineer]

Stents are done on an outpatient basis instead of spending several weeks in the hospital.

Agreed. Stents have revolutionized heart care and are miraculous. I wish there were actual numbers available to show the lives saved by these devices. We have gone from death, disability, very invasive surgery and days of hospitalization to a 23 hour procedure and almost instant recovery.

I know what I'm talking about after being on the receiving end. I had come down with a rare viral infection which set of an inflammatory storm. I was rushed to the ER and was in the OR in 15 minutes. I received two stents and immediately felt like I was well enough to go home. The next day I was released without any further complications.

When you think about the many devices including DBS you begin to wonder what their true intent was. I find it inescapable not to conclude the motives were insidious. I have tried to understand it based on stupidity, but that even falls short. These are truly evil human beings.

[q_an_a]

The more than stupid Republican response is to introduce legislation that has no chance of a Senate vote - where are the TV ads and the talking heads pointing out that Obambicare cuts medicare benefits to senirors and this take on medical devices to pay for kids out of college to ahve coverage? FAce facts republicans fight like they are afraid of getting a bloddy nose.

[Desron13]

Let me get this straight. Obamalamadingdong wants to make health care more affordable by placing heavy taxes on medical devices. Yes kiddies, lets all stare deeply into the bright white light of stupidity... Feel better now?

[Attention Surplus Disorder]

There are parts of Obamacare that are Unconstitutional, some are onerous in terms of a regulatory load. This is flat out stupid and punitive to the private sector, for no good reason.

[The Antiyuppie]

"Obamacare's Medical Device Tax Kills Jobs"

Obamacare's Medical Device Tax Kills Jobs

Fixed.

[SunkenCiv]

Thanks 92nina.

[lgwdnbdgr]

Let me get this straight. Obamalamadingdong wants to make health care more affordable by placing heavy taxes on medical devices. Yes kiddies, lets all stare deeply into the bright white light of stupidity... Feel better now?

That money goes right back into subsidizing health care. In effect, it just forces us all to buy the government health care. You have to pay the tax, so you have the choice of obeying and getting a subsidy to offset, or thinking independently and being out the amount of the tax. It's actually a pretty clever scheme, if your goal is to increase government power. The medical appliance manufacturers aren't a huge voting block. The taxpayers who have to pay those costs don't know they are -- they likely will be angry at the companies for charging so much and happy with the government for "helping them out." Everybody wins. And by "everybody," I mean "only government officials."

[dervish]

“the negative effect the Medical Device Tax under Obamacare would have would be to discourage medical innovation”

This is the desired outcome. They don’t want innovation. They don’t want longer life or survival from disease. That costs too much.

Everything Obamacare has done, from the death panels to this, points to one thing — the surest way to cut costs is to cut lives.

anyone but Obama

[Desron13]

My point exactly. The only way that they get away with this is because they have already succeeded in dumbing down our schools to the point where graduates can't find their own asses with both hands.

To confirm this all you need to do is converse with one of the occupy nitwits for five minutes and realize that they haven't the first clue as to whats going on. Worse. they feel discriminated against if you point this out to them.

They are well past the point where if left to their own devices, they would not survive.