IRS finalizes new tax for medical devices in healthcare law
Note this tax is to be paid on GROSS SALES, not profits...so a manufacturer might be losing billions and about to declare bankruptcy, but STILL has to pay the tax on their SALES.
Of course, we all know manufacturers don't pay the taxes, they just pass the cost on to the consumers....so much for Obamacare reducing costs.
Of course, we all know only the rich who earn over $200k buy medical supplies and devices, so Obama is honoring his promise that no one earning under $200k will see ANY of their taxes raised
Of course, medical 'devices' means anything the government wants it to mean....so tongue depressors are subject to this tax, even though people can buy them for their own use....it seems the jury is still out on whether Latex gloves will be included in the tax or not.
Of course, we also know how Obama loves manufacturing and wants to grow the manufacturing base in the USA, which is why he is slapping more taxes on US manufacturers, so now medical service providers will also have to buy tongue depressors, supplies, and possibly latex gloves form China or face paying higher prices for US made items.
my disdain and disgust with far-away federal government one-size-fits-all boondoggles grows day by day
he U.S. Internal Revenue Service on Wednesday released final rules for a new tax on medical devices, products ranging from surgical sutures to knee replacement implants, that starts next year as part of President Barack Obama's 2010 healthcare law.
The 2.3-percent tax must be paid, effective after December 31, by device-makers on their gross sales. The tax is expected to raise $29 billion in government revenues through 2022.
The tax applies mostly to devices used and implanted by medical professionals, including items as complex as pacemakers or as simple as tongue depressors.
In one potentially problematic aspect of the tax, companies selling dual-use products to medical and non-medical customers must pay the tax on those products, potentially putting them at a competitive disadvantage, said Lew Fernandez, a director at PricewaterhouseCoopers LLP and a former IRS official.
For example, it remains "an open question" when latex gloves come under the tax, he said.
Last edited by Radeck; 12-06-2012 at 01:56 PM..
The American people will never knowingly adopt socialism.But under the name of 'liberalism',they will adopt every fragment of the socialist program,until one day America will be a socialist nation,without knowing how it happened - Norman Thomas,6-time presidential candidate for the Socialist Party of America
The federal government has taken too much tax money from the people,too much authority from the States,and too much liberty with the Constitution - R. Reagan
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