Tuesday, December 11, 2012

Washington Sneaks In New Obamacare Tax



Washington Sneaks In New Obamacare Tax

By: Adam Busuttil
12-11-12

With much debate in Washington over the Bush tax rates, little attention has been given to the new Obamacare tax set to take effect the first of the year.  Could this be an attempt to focus attention away from the new Obamacare tax? An article by Fox News claims that while much of the talk in Washington has been focused around the Bush tax rates, the fee’s in the new Obamacare tax has been “largely overlooked”.       

The IRS released a report earlier this month outlining the fee’s and rules of this new tax.  One of the overlooked fees is the new medical device tax. Georgia Congressman Tom Price said in a statement; “Now, everything from latex gloves to pacemakers will become more expensive and in some cases, more scarce,” Congressman Price also added; “The tax on medical devices harms America’s ability to conduct the necessary research and development to maintain our global competitiveness, resulting in the loss of tens of thousands of jobs and fewer groundbreaking innovations in this field. With millions of Americans unemployed, this simply makes no sense.”

While there are several fees involved in the new tax, the medical device fee alone imposes a 2.3% tax on certain medical devices, but that figure is based on gross sales and how that will impact actual earnings is said to be inaccurate and estimated to be closer to 15%.  The new tax has already caused new medical facilities to cancel plans to open, such as Cook-Medical in Indiana who had plans to open 5 new facilities. 

Regardless of whether Bush tax cuts are extended or not, tax rates will increase do to this new Obamacare tax and the cost of medical expenses will likely increase with it.

Earlier this year the House voted to repeal the tax, but the Senate never took it up.  

 Sources:

Deal or no deal, ObamaCare taxes poised to hit next month. December 08, 2012 FoxNews.com. http://www.foxnews.com/politics/2012/12/08/deal-or-no-deal-obamacare-taxes-poised-to-hit-next-month/

© 2012


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