Sec. 552: Small Medical Device Companies Hit with Massive Tax
SmallBizRepub says:
Under Speaker Pelosi’s health care bill, medical device makers would pay a 2.5% excise tax on sales of their products, roughly ninety percent of whom are small businesses. The Medical Device Manufacturers Association estimates the cost to their industry would exceed $20 billion over 10 years. Job creation will surely be halted with these tax increases
Amplify’d from thomas.loc.gov
`(a) In General- There is hereby imposed on the first taxable sale of any medical device a tax equal to 2.5 percent of the price for which so sold.
SEC. 552. EXCISE TAX ON MEDICAL DEVICES.
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4 Responses
Michael Ehline November 5, 2009 11:54 pm
Lon Vetula November 6, 2009 12:49 pm
SURELY be halted. Just like EVERY other nightmare scenario republicans predicted before a raise in taxes that NEVER panned out. Remember that Clinton one that surely would be the death of our economy? OH yeah… killed it.
Then there’s the facts….
The medical device industry is highly profitable, with margins ranging from 7 to 10 percent on basic stents to over 20 percent for artificial joints and high-end imaging devices. On top of this, their volume stands to increase considerably as the broader health care industry absorbs 36 million more paying customers.
Device manufacturers also have not been innocent bystanders as health care spending has skyrocketed in recent years. Expenditures equaled 6.2 percent of the health care market in 2006 and were growing considerably faster than overall medical inflation. Dr. Steven Nissan, chief of cardiovascular medicine at the Cleveland Clinic explains this partially through the companies’ aggressive marketing techniques, including confidential payments, to drive up demand. “Given the way they have encouraged over-utilization, it makes sense that some of that should be given back to help bend the cost curve,” he told the Washington Post. Worse, although spending on medical devices is far higher in the United States than other countries, health outcomes are no better.
Surely an industry with $2 trillion in anticipated revenues over the next decade can afford to pitch in $20 billion for much-needed reform.
Bye the way…. how much of the $15.9 million the industry spent lobbying Congress in the first 1/2 of 2009 did you get???
merriemarie November 7, 2009 6:43 am
Danny Rodriguez November 9, 2009 11:59 pm
RT @SmallBizRepub Sec. 552: Small Medical Device Companies Hit with Massive Tax http://amplify.com/u/tkr Re: http://amplify.com/u/tkr @SmallBizRepub In a previous post by a “Lou Vetula” he states, “Surely an industry with $2 trillion in anticipated revenues over the next decade can afford to pitch in $20 billion for much-needed reform.” And while I don’t agree with industry lobbying in Congress (whether device manufacturers or any other industry), I think he shows his fuzzing thinking when he non-chalantly declares that the industry “can afford to pitch in $20 billion”. Mr. Vetula, they are not asking them to “pitch in”, they are being force and coerced into doing this by a run away, fascist government. He seems to be a typical liberal democrat who just love to give away other people’s money. It’s time to: http://www.flipthishouse2010.com