Medical Device Tax Takes Effect Jan 1st, Killing Jobs Already

handpillsA tax built into Obamacare on medical devices is set to go into effect on January 1, 2013, but now 18 Democratic Senators are asking Harry Reid to delay implementation of the tax in order to reduce the negative effects to medical device manufacturers. The tax is a 2.3% excise tax on all medical devices manufactured in the U.S. and is meant to help raise the tax revenue needed to pay the costs of Obamacare. Although the supporters of this bill (which they passed before reading) claim it will increase the quality of healthcare while reducing prices, anyone with common sense can see that increasing taxes on the people who make medical devices will necessarily make the prices of the medical devices rise, and make the quality of the devices decline, in order to  pay the extra costs imposed by government and keep up with demand.

The extra costs of the tax lead to downsizing of employment because you can not spend the same dollar twice. This means the same amount of products must be produced by fewer people, which leads to a decrease in quality of the devices made. The only thing that can be expected of this tax–whenever it is implemented–is a reduced quality of products, increased price of products, and fewer people employed in the medical device producing industry. Already the negative effects of  the tax are being seen on the industry, according to a Daily Caller article.

Indiana-based Zimmer Holdings, which manufactures hip replacement implants, laid off 450 workers in anticipation of $60 million in taxes in 2013. Michigan-based Stryker Corp., which also produces hip implants, laid off 5 percent of its workers in a bid to compensate for the $100 million it will pay in taxes next year.

The provision has proved to be problematic for Democratic senators from states with large numbers of medical device companies. Indiana Senator-elect Joe Donnelly and Michigan Senator Debbie Stabenow signed the letter alongside the next Massachusetts Senate delegation, Elizabeth Warren and John Kerry, whose state is home to more than 400 medical device companies.

Looks like they made their bed, and are refusing to lay in it. Did John Kerry forget that Massachusetts had 400 medical device companies which would be negatively effected by this tax? Did John Kerry know that this tax existed in the bill? Did John Kerry Read the bill that he voted for? This is how politicians work; they put their names on bills which sounds good, “The Affordable Care Act”, seeking to reap the political benefits of their benevolence. But it is all a charade, and stealing one persons’ money to give to another is not charity, it is robbery. John Kerry chose political power for himself and for the government through Obamacare, at the detriment to 400 companies in his own state. Nevermind that this bill will also effect almost every American negatively with poor care, and longer waits, Kerry did not even have to look that far ahead. All he needed to do was look to January 1, 2013 to see how people in his state would be hurt by Obamacare. But he didn’t, and now Massachusetts will lose jobs, and the economy will get a little worse. Massachusetts might even be on track to lose another congressional seat after the 2020 census, if the rest of the country is lucky.

The main point is that these politicians who voted for Obamacare, did not have the affordability of healthcare in mind, at best they were thinking of their own political ambitions and power, and at worst they were trying to set up a system where the federal government has more power, is more centralized, and has more control over the citizens. This is one example of how Obamacare will burden the healthcare industry, leading to lower quality devices, longer waits, and lack of quality care.

To understand why the patient must pay part of the costs of healthcare in order to keep care affordable, click here.

One thought on “Medical Device Tax Takes Effect Jan 1st, Killing Jobs Already

  1. Pingback: “The Recovery”: Real Wages Fall, Black Unemployment Up | Vigilant Vote

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