Skip to content

Medical Companies: Taxes In Healthcare Bill Will Kill Jobs, Businesses

Knock on effect will mean more costs for the American people

Steve Watson
Thursday, March 25th, 2010

Medical Companies: Taxes In Healthcare Bill Will Kill Jobs, Businesses 250310devicesOne of the key selling points of the Obamacare health bill for the Democratic leadership was that it would provide tax breaks and credits for businesses to cover the cost of insurance for their employees. The Washington elite were somewhat less vocal, however, about huge tax increases that some companies now say may wipe them out altogether.

Medical device manufacturers have warned that a tax under the new health care overhaul on companies producing medical instruments and equipment will mean that jobs and manufacturing may have to be shifted out of the U.S. in order to secure already razor thin profits.

Beyond passing on costs to hospitals, surgeries, ambulance companies and the like, the options for the medical device industry are to cut research and development and then shift their production bases abroad.

Ernie Whiton, chief financial officer of Zoll Medical Corp., tells the Boston Herald “This bill is a jobs killer”.

“We could be forced to (move) manufacturing overseas if we can’t pass along these costs to our customers,” said Whiton.

Zoll, the leading manufacturer of heart defibrillators, employs around 650 people at its manufacturing facility in Massachusetts, and a further 1000 across the country.

“We believe that the tax will cost us somewhere between $5 million and $10 million a year,” Richard Packer, Zoll’s chairman and chief executive officer told The Washington Examiner this week. “Our profit in 2009 was $9.5 million.”

Under the Obamacare bill, signed into law on Tuesday, the government will extract a fee of $2.2 billion annually from medical device makers, equating to a sales tax of 2.9% beginning almost immediately. This would result in a $20 billion hit for the industry over the next decade.

Under the companion “Reconciliation” bill, currently in the Senate, the tax is set at 2.3%, and would take effect on January 1st, 2013.

We can’t run this company at a break-even or a negative rate,” Zoll’s Packer adds, “so we will be forced to look at alternatives.”

As part of the life-sciences sector, the medical device industry has actually continued to create jobs despite the economic crisis – this is how those healthy companies are now being rewarded, with possible extinction.

“They’re beating up on the guys doing the best to create jobs,” Tom Taylor, chairman of the Massachusetts Medical Devices Industry Council and founder of Roush Life Sciences told the Examiner.

Medical Companies: Taxes In Healthcare Bill Will Kill Jobs, Businesses 110310banner1

The bill is expected to clear both chambers today. Once it does so, numerous tax increases will be put into law by Obama.

The government will extract a fee of $2.3 billion annually from the pharmaceutical industry, a cost that will inevitably also be taken out of research and development, as well as being passed on to the consumer.

The government will also extract a fee of $6.7 billion annually from insurance companies – ‘good, they are the ones to blame’ many will cry – maybe they will think again when premiums increase and the cost is yet again passed on to the consumer.

The bill also legislates for a $50,000 tax on hospital organizations, which fail to meet described quality requirements – perhaps because they have to spend more of their funds on the increased cost of medical devices?

Another business tax contained within the reform bill is a 10% levy on indoor tanning. The International Smart Tan Network says that the tax “could lead to more than 1,000 tanning business closures in 2010″.

A similar 5% tax will be applied to elective cosmetic medical procedures.

Companies that provide pension plans that include prescription drug benefits for retirees and their spouses, have also warned they face being hit hard by taxes on federal subsidies they receive as part of the process.

Heavy machinery manufacturers Caterpillar and Deere have been most vocal about this, announcing that they will immediately face $100 million and $150 million charges respectively as a direct result of the health care overhaul.

All businesses, of course, face hefty fines of $750 (up to $3000 under the Reconciliation Act) should they fail to provide employees with coverage.

In addition, under the Reconciliation bill, firms refusing to pay health insurance, but not meeting required exclusions, face an 8% tax on wages.

The federal government will also impose a 40% tax on the value of employer-sponsored health coverage which exceeds certain “high cost” thresholds.

The Chamber of Commerce tells Fox Business that “the new law will hurt job creation and increase taxes on small businesses, and do little to restrain [health care] costs.”

The idea that the Obamacare bill is business friendly is another myth that is washed away like sandcastles on a beach within five minutes of reading around the peripheries of the legislation. Just as the idea that a trillion dollar health bill could in any way cut the national deficit, the notion that American businesses will be in any way shape or form better off as a result of the mandates placed on them under this so called “reform” is patently absurd.

Related Posts with Thumbnails

Posted in Health Care.

Tagged with , , .

0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

Some HTML is OK

or, reply to this post via trackback.

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's all happening now big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale". This site must be on some list at GCHQ/NSA as my AdSense revenue which I rely on has gone down by a third. Either people are not helping out by visiting sponsors sanymore or I am being blackballed like many YouTube sites.

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally I know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know some people in prison now for the content they had on their "secret private group". Use Telegrams secret chat mode to chat on, or if you prefer Wickr. If you really need to, buy a dumb phone with nothing for the NSA/GCHQ to hack into. Ensure it has no GPS tracking on it and that the battery can be removed. These are usually built for old people to get used to technology storing only a set of numbers to call. However they have no games, applications to install or other ways people can exploit the computer tracking device you carry round with you most of the day - your smart phone. If you are paranoid ensure that you can remove the battery when travelling around and do so to prevent GPS tracking or phone mast triangulation. Even with your phone in Flight mode or turned off, it can be turned on remotely and any features like front or back cameras, microphones and keylogging software can be installed to trace you.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering rubbish) then I could REALLY do with some..

Even if it's just £5 or tick the monthly subscription box and throw a few pound my way each month, it will be much appreciated. Read on to find out why.


Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material.

Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and tag any tweets with alternative news from the mainstream with the #altnews hashtag I created to keep it alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?