By Joseph Walker
A group of 17 Democratic U.S. senators and senators-elect have signed a letter urging for a delay in implementing a tax on the medical-device industry that is scheduled to go into effect Jan. 1, said two people familiar with the matter.
The letter, a copy of which was obtained by Dow Jones, publisher of The Wall Street Journal, was addressed to Senate Majority Leader Harry Reid and said the “the medical device industry has received little guidance about how to comply with the tax–causing significant uncertainty and confusion for businesses.” It requested a delay be included in the bill Congress is negotiating to avoid the so-called fiscal cliff.
The Democrats’ support could give new momentum to the industry’s intense lobbying campaign to repeal or delay the 2.3% tax on device sales, which companies say will hurt profits and lead to U.S. job losses. However, they face a battle because other Democrats, as well as the White House, oppose any postponement.
Like little Miss Nancy said, you have to pass the bill to see what’s in it. Now that its been passed, they are starting to see what’s in it and the dems don’t like it. I agree with All or Nothing – the dems rammed this down the nation’s throat and so THEY OWN IT. As for Obama not being willing to delay the implementation of the tax, the dems in the Senate and House will just have to get over it.
The medical device tax is an example of many facets of Obama care act that was ill conceived. The 2.3% tax is on revenue, not profit. Thus harming the large companies who have profits, creating a greater than15% tax on profits and effectively exterminating the small start ups who have to pay revenue taxes, but have not profits as tax resources. Both large and small companies lose, but most of all the American people lose with the loss of enervation and new medical devices.
Funny how stupidity and dogma come back to bite those who supported same.
Where were all these senators when O Care was rammed through?
Why just med devices? Why not drugs also? Hell, why not a National Sales Tax of 2.3%?
OBTW, the tax not only covers the sales price of the device but it also applies to shipping and installation expenses. Really.
But of course this tax will only impact patients making over 200 K$, isn’t that right Barry?