Funding the Exchanges?

[somarco]

The surcharge is levied on the manufacturer of certain medical devices, including things like tongue depressors. It is not a sales tax as such since it is applied to gross sales at the wholesale level which is passed on to the suppliers and retailers.

In essence it is similar to a VAT that is common in Europe.

A 2.3% tax on medical-device sales, not profits, was imposed under the theory that sales to medical-device companies would surge after patients newly insured by the Affordable Care Act poured into the system. What the industry lost in margins, it was supposed to make up in greater volume.

That calculation ignored the fact that the vast majority of medical-device consumers already are covered by Medicare, Medicaid or private insurance. So there will be little or no increase in sales volume to offset the added cost of $30 billion—according to the Congressional Budget Office—to the industry. This tax comes straight out of a company's bottom line. Because many devices are sold to hospitals, physicians and other providers through multiyear contracts, the prices are already locked in, so the tax cannot be passed on to the buyer.

The hit will be severe. For a typical company, a 2.3% tax on revenues equals a 15% tax on profits. When combined with a 35% corporate tax and state corporate taxes, the tax rate for the medical-device industry will exceed 50% in most jurisdictions. Many marginally profitable businesses will then hemorrhage red ink, since they'll have to pay the excise tax whether they are making money or not.

Especially hard hit could be the hundreds of small companies developing medical software applications. These apps promise to revolutionize the practice of medicine—for instance, by delivering blood-sugar test results for diabetics. The IRS is deciding now whether to treat apps as medical devices subject to the tax

Obamacare And Entrepreneurs: What You Should Know; How To Prepare - Forbes

 

[sleepyc]

So, you're saying the anti venom or stitch kit that Cabela's sells, requires them to charge the tax on ALL items sold at Cabela's?

NOTHING Cabela's sells qualifies for this tax. One of the exemptions to the tax is on items sold at the retail level for individual use. So the hearing aids, vitamins, first aid kits, etc they sell are indeed exempt. This was merely a glitch in the registers.

 

[AllenChicago]

Consumers pay a penalty-tax for not having health insurance and manufacturers pay a penalty-tax for developing devices to help the sick. Twisted sick logic!...but apparently the American people like it since we keep electing people that come up with and support these immoral, unethical schemes.

 

[somarco]

They either don't understand how their laws impact the consumer. You would be surprised at how many people think companies pay taxes, not individuals.

The medical tax will be passed along which means all of us pay more. If you have Medicare, Medicaid, SCHIP, etc the increased cost means all of us pay more.

 

[GreenSky]

They either don't understand how their laws impact the consumer. You would be surprised at how many people think companies pay taxes, not individuals.

The medical tax will be passed along which means all of us pay more. If you have Medicare, Medicaid, SCHIP, etc the increased cost means all of us pay more.

And you think this is a bad thing? How else can we fund free insurance for most, and affordbable insurance via obamatax for everyone else?

You probably object to tax credits for the motion picture industry as well.

Rick

 

[somarco]

You probably object to tax credits for the motion picture industry as well.

Actually, I watch a lot of video's and appreciate the subsidies.

 

[GreenSky]

Actually, I watch a lot of video's and appreciate the subsidies.

You're ok with the condom law in Los Angeles?

Rick

 

[AllenChicago]

NOTHING Cabela's sells qualifies for this tax. This was merely a glitch in the registers.

This is exactly what Cabela's is saying today. But in Texas, sellers of medical related devices ARE allowed to pass along this tax to the purchaser and to add a separate line on the receipt detailing this charge.

Source: snopes.com: Medical Device Excise Tax

-ac

 

[somarco]

You're ok with the condom law in Los Angeles?

Haven't been to LA in years. No plans to be back.