Indiana company scraps plans for expansion over ObamaCare device tax
An Indiana-based medical equipment manufacturer says it's scrapping plans to open five new plants in the coming years because of a looming tax tied to President Obama's health care overhaul law.
Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years.
"This is the equivalent of about a plant a year that we're not going to be able to build," a company spokesman told FoxNews.com.
He said the original plan was to build factories in "hard-pressed" Midwestern communities, each employing up to 300 people. But those factories cost roughly the same amount as the projected cost of the new tax.
"In reality, we're not looking at the U.S. to build factories anymore as long as this tax is in place. We can't, to be competitive," he said.
Company executive Pete Yonkman first revealed the scuttled plans in an interview with the Indianapolis Business Journal. The company later confirmed the decision to FoxNews.com.
The Affordable Care Act imposed a 2.3 percent tax on medical devices beginning in 2013. It is projected raise nearly $30 billion over the next decade.
But the Cook Medical spokesman said the impact is greater than just a 2.3 percent uptick in taxes. He said the impact on actual earnings is another 15 percent, and he projected the company's total tax burden next year will rise to over 50 percent.
Republicans and medical device makers have been railing against the tax all along, with the GOP-controlled House approving a bill last month to repeal it. The Senate, though, hasn't taken it up.
A recent study by the left-leaning Center on Budget and Policy Priorities, though, said the complaints by the industry are exaggerated.
"The tax will not cause manufacturers to shift production overseas. The tax applies equally to imported and domestically produced devices, and devices produced in the United States for export are tax-exempt," the study said. It also said repealing the tax would "undercut health reform" by requiring Congress to offset the repeal by potentially killing spending provisions in the law and by potentially encouraging similar repeals.
Cook Medical is part of a family of companies that produce medical devices for surgery, obstetrics, gynecology and other fields
Guaranteed if this happened under a Conservative administration it would be HEADLINE news for weeks on end ! They have this burning need to protect and promote their lame dick choice for president !
"The tax will not cause manufacturers to shift production overseas. The tax applies equally to imported and domestically produced devices, and devices produced in the United States for export are tax-exempt," the study said. It also said repealing the tax would "undercut health reform" by requiring Congress to offset the repeal by potentially killing spending provisions in the law and by potentially encouraging similar repeals."
The tax will also be applied to any imported medical products so it WILL NOT drive medical device companies overseas and the tax is a low 2.6% and will hardly effect any medical device producers profit as it will just be added to their price.
This is just a BS propaganda piece by a few medical device manufacturers supporting the RW nut job agenda and came straight from FAX news of course!
Humans are much more dense and stupid than even I gave them credit for.
"The tax will not cause manufacturers to shift production overseas. The tax applies equally to imported and domestically produced devices, and devices produced in the United States for export are tax-exempt," the study said. It also said repealing the tax would "undercut health reform" by requiring Congress to offset the repeal by potentially killing spending provisions in the law and by potentially encouraging similar repeals."
Obviously you are not intelligent enough to know how supply and demand free markets work!
GOT IT PAB!!!
How much room does your cardboard box take ?
What are some significant accomplishments of the Democrats in the last 150 years?
Formed and operate the KKK
Filibustered civil rights bills.
Caused our current mortgage meltdown/financial disaster.
"The tax will not cause manufacturers to shift production overseas. The tax applies equally to imported and domestically produced devices, and devices produced in the United States for export are tax-exempt," the study said. It also said repealing the tax would "undercut health reform" by requiring Congress to offset the repeal by potentially killing spending provisions in the law and by potentially encouraging similar repeals."