As lawmakers ponder ways to bring back U.S. manufacturing of pharmaceuticals, their raw materials, medical supplies, and devices, it must be remembered a major part of this problem which has come back to bite us was created by the Obama/Biden administration and the medical device tax that was included in ObamaCare that was supposed to defray the costs of this doomed-to-failure new entitlement program.
As part of the Orwellian-named Affordable Care Act, sales of medical devices from implants to MRIs, research equipment and surgical instruments were to bear a 2.3 percent tax. The tax would be on gross sales and not just profits. Even packaging, shipping, and warranties were included when calculating what was to be taxed.
Because the Affordable Care Act was so unaffordable, it needed a running head start on revenue with imposition of the new tax beginning on January 1, 2013, while ObamaCare itself would begin a rolling implementation in 2014 with its more harmful aspects and the revelations that, no, you couldn’t keep your doctor or your plan even if you liked them. We would have to wait to find out that premiums would skyrocket, not decrease $2,500 as promised in another Obama/Biden lie, and deductibles would be so high that many of those with insurance couldn’t use it. Taxes first, questions later.