Senators from Minnesota and Indiana are sponsoring a device tax amendment that would exempt companies with annual revenue below $100 million, reports
Star Tribune. In addition, companies reporting between $100 million and $150 million would pay an excise tax on 50% of their revenues; the rate for companies with more than $150 million in annual sales would be 100%.
If approved, the amendment would make the excise tax a deductible item and would also call for the tax to take effect in 2013, instead of 2010.
So here is the question: would these adjustments make a device tax palatable to industry?
Dear Dems Love Lawyers, Not
Dear Dems Love Lawyers,
Not to quibble over details, but I feel I should bring to your attention that Franken and Klobuchar have written letters to Baucus expressing their firm opposition to the device tax, as we reported here. However you may feel about Democrat or Republican policies, industry should recognize that its friends do not belong to just one party. And now, I will get off my soapbox.
Heather Thompson
So once again we are raising
So once again we are raising tax revenue by passing a new tax, and then allowing a deduction for it. Not as much revenue as it could be, a lot more paperwork. I guess that makes as much sense as every other idiot idea the government comes up with.
Unless you have no character
Unless you have no character and no morals, you do not compromise on idealogy. This "device tax" is nothing more than a money grab. The medical device industry is not heavily unionized, so its a perfect indusry to pick on. Its pathetic to see two socialist leftists like senators franken and klobuchar trying to act like they are the good guys trying to 'reduce' this unfair tax. This act doesn't play with logical people. The tax is unfair and should be dropped. Healthcare changes have to be funded through existing monies and thru the supposed 'savings' that obama promised.
This automatically gives
This automatically gives smaller companies a government mandated competitive advantage based on the size of the company without regard to clinical quality of the device. Cost conscious hospital administrations are likely to automatically opt for the less expensive items providing a double whammy to the larger med companies.
Anybody think that might produce a negative effect on how companies grow? Acquire new businesses, employment opportunities…patient care.
Kill the healthcare bill, and
Kill the healthcare bill, and no amendment will be needed.