By The Right Scoop


The medical device tax that was created to help pay for Obamacare is also a job-killing tax, and because of the outcry of the medical device industry there is bipartisan support against it. Here is what Politico wrote about the tax last month (h/t: Hotair):

Medical innovation is key to providing cutting-edge, lifesaving technologies to patients. Between 1980 and 2000, new diagnostic and treatment tools helped increase life expectancy by more than three years. But the new tax will take money from our research and development pipelines, reducing our ability to discover and develop lifesaving medical devices such as heart valves, molecular diagnostic tests and MRI machines. …

Many of the novel, cutting-edge medical technology innovations come from small companies with very few employees. Unfortunately, the medical device tax will hit these small companies and startups hardest, because it will be applied on sales, regardless of whether a company is making any profit. Small businesses often suffer losses in the early years of operation when they are investing in research and development on new products. Paying a sizable new tax while incurring traditional startup-driven losses will be more than many small businesses can bear. …

This innovation tax also targets an American manufacturing sector created by companies choosing to locate in the United States even as markets grow beyond our borders. … The U.S. accounts for 40 percent of the global medical technology market. We have a $5.4 billion trade surplus because American workers create high-tech, top-quality medical devices…

And yet, this tax threatens these gains. At least three studies have estimated the tax will cost tens of thousands of jobs — by one estimate as many as 43,000 jobs.

Despite all of this, Obama refuses to delay it saying that these companies will get tons of new customers so it’s all good:

(h/t: Weekly Standard)

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