Taxing Medical Progress to Death


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“This creates tremendous pressure for us to move manufacturing to Europe and other parts of the world.” According to the trade publication Mass Device, the company has already canceled plans to build a new factory in the U.S. because of the Obamacare tax burden.

Stryker, a maker of artificial hips and knees based in Kalamazoo, Mich., announced in November that it would slash 5 percent of its global workforce (an estimated 1,000 workers) this coming year to reduce costs related to Obamacare’s taxes and mandates.

Covidien, a N.Y.-based surgical supplies manufacturer, recently announced layoffs of 200 American workers and plans to move some of its plant work to Mexico and Costa Rica, in part because of the coming tax hit.

Mass.-based Zoll Medical Corp., which makes defibrillators and employs some 1,800 workers in the U.S. and around the world, says the medical device tax will cost the company between $5 million and $10 million a year. Its profit in 2009 was $9.5 million. “Running our company at close to break even would not be a sustainable position for us,” CEO Richard Packer said in a public statement, “so we will be forced to look at alternatives.”

Those “alternatives” include cutting payroll, cutting R and D and passing on the costs to patients, of course. Industry estimates put the tax-induced job losses at 43,000. So far, the number-crunchers at 1600 Pennsylvania are mum on the number of potential jobs — and lives — destroyed by the medical innovation death tax.

In fact, the Obama administration’s response so far has been a flippant shrug. Treasury Secretary Tim Geithner, whose only manufacturing claims to fame are faulty tax returns and near-double-digit unemployment figures, brushed off concerns this week about the medical device tax. Obamacare’s expanded access to health care, he argues blithely, will create more consumers for their products. “On balance, it is a good package for people in the health care business,” he told Bloomberg News.

Fewer jobs. Fewer entrepreneurs. Fewer medical advances. Only with a gallon of self-delusion does the Obamacare medical tax medicine amount to anything other than economic and medical malpractice.

Obama 2012: Winning the future … by killing it.

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  • truebearing

    Part I

    The Progressives, under Obama, have saddled this nation with a curse that keeps on plaguing. Recently Obama attacked the free exercise clause, the establishment clause, and the free speech clause of the 1st amendment with his decree of dhimmitude for the Catholic Church, and his silencing of military chaplains. This was all part of forcing Catholics to submit to the "sacred" preventative eugenics of the Church of the Environmental Left.

  • truebearing

    Part II

    Obama's medical device tax is yet another assault on the quality of our health care, and our longevity. This tax is part of what I call "situational eugenics", where people die as an indirect result of economic conditions brought about by Progressive policy. The strangling of our energy sector, which will lead to higher costs for food producers or heating homes, will also result in deaths. This is how the radical Environmental Left can kill millions and avoid direct culpability. Banning key herbicides, insecticides, etc is another form of situational eugenics in that it will increase starvation.

    Death Panels are real. Don't assume that the increased mortality that Obamacare will cause is an unintended consequence. The Left has always had a cold spot in their heart for mass murder.

  • Anamah

    The obtuse Obama mentality works as leeches treatments that were used to bleed patients. When this Pharaonic president and his plagues quite power will leave our beautiful America, severely exsanguined, anemic, near her last breath. As sooner they will be thrown out the better. Progressives are squeezing our country in every mode possible. Obama care is one malignant example of that. What a coincidence I am remembering the death of our patriot George Washington: bloodless.

  • davarino

    This shows the lack of math skills these dummies have. They are taxing to death the very devices the government will eventually have to pay for. If the gov is the single payor then it will be paying a higher price for those devices because of the tax. Of course I am sure the gov will eventually find a manufacturer who will play along and will get a tax exemption and they will be the monopoly. All the while the prolateriate gets to have exellant health care by their special doctors and we get the devices made by Tonka Toys. Lovely shell game.

    • Eric G

      "They are taxing to death the very devices the government will eventually have to pay for."

      I think that's the point. If the govt pays for it, then it controls it. That's what this administration is about — control.

  • StephenD

    Let's see…if you wanted to further damage America what else would you do? Why, force companies to either lose profit or dump jobs here for overseas workers or cut back on the product. What a great thing to do if you're an enemy!
    This is just another cog in the wheel intended to run us over until we are subjugated. I expect Obama envisions a European Style Nation-State type Socialism for us.
    Man, do we ever need a Patrick Henry! "Give me Liberty or give me death!"

    • Chris C

      With Obama there will be plenty of death to go around, sadly.

  • Bob H.

    My belief is that everything that the current administration is doing has a purpose. It's not that these folks are insufficiently educated, it is that they are very intelligent and are working at promoting a specific agenda. Think about it this way, or choose your own anology. If you skillfully remove 75% (or pick a number) of trees from a very large forest, most folks would not notice. This weakens the forest and makes it ripe for total destruction in a very short time. The removal of the trees happens little by little over time until there is no returning the forest to its past strength. It is very purposeful and very methodical…

  • toomuchman

    More proof that the entire Obama Administration is made up of clueless fools.

  • sidefillippe

    Even Bill knew Obamacare is dangerous, therefore he had to get the stent before it's becoming too scarce and too expensive.

    But he forgot his condition is very likely to return after Obamacare becomes reality.

  • badofdirt

    Of course those "Industry estimates put the tax-induced job losses at 43,000" numbers are too small to be included in the latest unemployment rate.

  • Flowerknife_us

    l

  • Flowerknife_us

    The Health care bill is a form of Slavery where by the Federal Government is claiming ownership. How else can they make criminals out of those they know up front can never pay, while forcing those they feel can pay to pay for everyone. Unless they feel they own you.

    Befor the Supreem Court is a modern version of the Dread Scott case. Only this time it is the Federal Government claiming ownership instead of the Individual.

    Right now Obama only feel like he owns us. What do you think will happen if the Court actuall confirms his ownership???

    Does your SCHOOL LUNCH pass the healthy test today. Was your kid given a lesson as to who is really their boss today. You know, because it's good for them.