No it’s not passed along. It’s a tax on the Gross revenue not the Net.
It is always passed along. Whether directly via the market or us getting another tax increase.
Ultimately it can be passed along, even if tax is on the gross. Pay 2.3 tax on 100 buck device and you’re left with 97.70. Raise the cost of the device to $110, pay the same 2.3% tax and you’re left with 107.47.
But it’s not initially passed on to the patient, it will be passed on to the insurer...and the consumer will either be faced with higher insurance costs, or will limit approval for the use of a device...which in turn will mean layoffs at the manufacturer because less devices are needed.
Either way, it’s a bad thing (and the major devices cost 10’s of thousands of dollars, not $100.)
No it’s not passed along. It’s a tax on the Gross revenue not the Net.”””
Not following your logic here, friend.
The tax is on the MANUFACTURER of the items, as I understand it.
Therefore—the manufacturer will add such costs to the price of what they sell to the medical clinics, doctors, and hospitals.
That certainly becomes a ‘pass along cost’.