Sunday, March 24, 2013

Just Days Before ObamaCare’s Three-Year Anniversary, An Overwhelming Majority Of The Senate Voted To Repeal ObamaCare’s Medical Device Tax

Ask Durbin what he was thinking when he voted for it in the first place. RNC below on the Senate's repudiation of Obamacare's Medical Device tax,


“The Senate Voted 79-20 To Get Rid Of The Law's 2.3 Percent Sales Tax On Medical Device-Makers.” (Jennifer Haberkorn, “Democrats Join Push To Dump ObamaCare Tax,” Politico, 3/22/13)
  • A Slew Of Democrats, Including Those That Backed ObamaCare, Joined Republicans In Repeal Of The Tax. “A slew of Democrats from states with prominent medical device industries helped push a bipartisan budget amendment through to repeal the health law's 2.3 percent tax on medical device sales.” (Jason Milliman, Paige Winfield Cunningham and Brett Norman, Politico’s Pulse, 3/22/13)
As The Amendment Was Agreed To In The Nonbinding Budget, Enough Senators Oppose The Medical Device Tax “To Surpass The 60 Votes Needed” For Repeal. “Assuming none of the provision's backers rescind their support, there is now plenty of support to surpass the 60 votes needed to repeal the device tax — if it comes to a vote, on another bill in the future. Thirty-three Democrats and one independent who caucuses with them supported the measure.” (Jennifer Haberkorn, “Democrats Join Push To Dump ObamaCare Tax,” Politico, 3/22/13)
Last Night’s Vote “Could Be A Sign Of Danger For Other Unpopular Aspects Of The Health Law.”  “The vote represents the latest bipartisan incursion on the law and could be a sign of danger for other unpopular aspects of the health law.” (Jason Milliman, Paige Winfield Cunningham and Brett Norman, Politico’s Pulse, 3/22/13)

Obama Has Stated That He Would Not Repeal The Tax

Despite Pleas For The Delay Of The Medical Device Tax From Democrat Senators, Obama Stated That He Will Not Delay Or Sign To Repeal The Medical Device Tax. WCCO’s FRANK VASCELLARO: “It's the medical device tax, it’s really important for companies like St. Jude and Medtronic and any medical device company and there are a number of them in Minnesota. It's a tax that would help pay for ObamaCare. And the most interesting thing is that Senator Franken and Klobuchar, who are Democrats from Obama’s own party would like to perhaps repeal part of this or at least delay this medical device tax. So I asked the president today are you willing to at least delay the tax?” OBAMA:  “No, and here's why. The health care bill is going to provide those medical device companies 30 million new customers. It's going to be great for business and they're doing really well right now.” (WCCO, 12/13/12)


The Medical Device Tax Will Lead To A Loss Of Jobs And Higher Costs

Medical Device Manufacturers Are Now Subject To A 2.3 Percent Sales Tax That Will Lead To A Loss Of Jobs And Higher Costs For Consumers. “A 2.3 percent sales tax on medical devices used by hospitals and doctors. Industry is trying to delay or repeal the tax, saying it will lead to a loss of jobs. Several economists say manufacturers should be able to pass on most of the cost.” (Ricardo Alonso-Zaldivar, “Health Care Tax Hikes For 2013 May Be Just A Start,” The Associated Press, 12/25/12)
The Tax Is Projected To Raise $29 Billion And Will Affect Manufacturers “From Thermometers To MRI Machines.” “On Wednesday, an Internal Revenue Service final rule detailed plans to levy the tax. It was originally projected to raise up to $20 billion in revenues over 10 years, but the Joint Committee on Taxation later estimated it would be around $29 billion. The 58-page device rule lays out a tax structure for an industry that manufactures everything from thermometers to MRI machines.” (Jason Millman, “Medical Device Tax Set But Industry Still Fighting,” Politico, 12/6/12)
  • In Addition To High-Tech Burn Treatments, Catheters And Back Braces Will Be Subjected To The Tax. “The 2.3 percent excise tax that device makers must pay on their gross sales goes into effect on Jan. 1. It's one of the new revenues used to offset the cost of the healthcare law. The Internal Revenue Service issued Wednesday its final rules on the tax, which will impact profits on items such as high-tech burn treatments, catheters, back braces and in-home HIV tests.” (Colby Itkowitz, “Casey Calls For Delay Of Medical Device Tax,” The Morning Call, 12/7/12)
  • Pacemakers And “Experimental Cancer Treatment Devices” Will Also Be Subject To The Tax. “The tax applies mostly to devices used and implanted by medical professionals, including items as complex as pacemakers or as simple as tongue depressors. Products sold for humanitarian reasons, such as experimental cancer treatment devices, are not exempt from the tax.” (“IRS Finalizes New Tax For Medical Devices In Health Care Law,” Reuters, 12/5/12)
The Medical Device Industry Projects That 43,000 Jobs Are Now Jeopardized By The Tax While The Industry Has Already Cut Nearly 6,000 Jobs In Anticipation Of The Tax. “Lobbyists for medical device makers say implementation of the tax could jeopardize about 43,000 jobs nationwide in a $64.7 billion industry. They say companies have shed about 6,000 jobs in the past year, some in anticipation of the tax, while others might scuttle expansion plans or cut back on research that can lead to medical breakthroughs.” (Bob Salsberg, “Medical Device Makers: Jan. 1 Tax Could Cost Jobs,” The Associated Press, 12/28/12)
The Joint Committee On Taxation Found That ObamaCare’s Medical Device Tax Would Indirectly Impact Middle-Class Americans. “Other provisions indirectly affecting individuals through possible effects on prices of goods and services include the imposition of an annual fee on manufacturers and importers of branded drugs; the imposition of an excise tax on manufacturers and importers of certain medical devices; repeal of the business deduction for federal subsidies for certain retiree prescription drug plans; the imposition of a fee on insured and self-insured health plans for the Patient Centered Outcomes Research Trust Fund; and the imposition of a 10-percent excise tax on indoor tanning services.” (Joint Committee On Taxation, Letter To Senator Tom Coburn, 3/20/12)
Prices For Veterinarian Care Are Expected To Go Up As ObamaCare Hits Medical Device Manufacturers. “Pet owners listen up: You may want to start saving more money for veterinarian care this year. The reason goes all the way back to Washington and an unintended consequence from medical reform. … Why the increase? Its part of a new 2.3-percent federal excise tax on certain medical devices that just went into effect. The tax will help fund the Patient Protection and Affordable Care Act, commonly known as Obamacare, intended for people, not pets. Manufacturers pay the tax, but a recent survey found more than half plan to pass it along.” (“ObamaCare May Bite You At The Vet’s Office,” CBSMiami, 3/11/13) 
“ObamaCare’s Medical Device Tax Applies To Dual Use Devices Such As “IV Pumps, Sterile Scalpels And Anesthesia Equipment.” “Medical devices used only on animals are exempt. However, items including IV pumps, sterile scalpels and anesthesia equipment, which are medical devices that have a dual use, meaning they can be used on people and animals, will be taxed.” (“ObamaCare May Bite You At The Vet’s Office,” CBSMiami, 3/11/13)

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