“If you were looking for a textbook example of a blundering government enacting a law that raises health care costs, destroys jobs, curtails innovation and hurts patient care – you’d come up with the medical device tax,” said U.S. Rep. Charlie Dent, of [Pennsylvania’s] 15th congressional district.
Are life-saving medical devices some sort of evil that warrants their own tax? Obamacare treats them that way. It imposes a 2.3% tax on revenues – not profits – of companies that make medical devices.
Already medical device firms across the country have begun laying off thousands of workers in anticipation of the added cost of the tax.
- In November, Denver, Col.-based Stryker Corp, announced 1,000 layoffs as a result of the tax.
- Last week, Massachusetts-based Boston Scientific lnnounced it would cut between 900 and 1,000 jobs, partly as a result of the tax.
- Big medical device companies disclosed plans to cut about 800 jobs in Minnesota last year.
- “There have already been thousands of layoffs across the country,” Paulsen said. “That means fewer jobs. It means less innovation.”