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Author: erikinthered100 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4314  
Subject: Medical Device Tax Date: 10/3/2012 2:15 PM
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Here's an article on the new Obamacare tax on medical devices:

http://online.wsj.com/article/SB1000087239639044462010457801...


The new tax is 2.3% on TOTAL SALES. It's not a tax on profit but 2.3% on overall sales. So, the effective tax is much higher. Let's say the company has a 5% profit margin on it's medical devices. That results in an effective tax of 46% on profits. That's correct. Of course, that's absolutely huge.

As the article points out:

"Many U.S. device companies, in response, have already announced layoffs, canceled plans for domestic expansion and slashed research-and-development budgets. This month, Welch Allyn—a maker of stethoscopes and blood-pressure cuffs—announced that it will lay off 10% of its global workforce over the next three years, but all of the jobs being cut are in the U.S.


Thus, the new tax will lead to job losses in the medical device sector, decreased innovation and higher prices for needed medical devices.


Isn't "reform" wonderful?


dave
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