Tuesday, December 18, 2012

ObamaCare Medical Device Tax Will Deal Crushing Blow to Orange County Businesses

My previous report is here, "Democrats Seek Delay of ObamaCare Medical Device Tax."

And here's this at the Orange County Register, "A prescription that kills innovation":
No state will be more adversely effected than California by the 2.3 percent tax increase on medical devices, which the Obama administration expects to raise nearly $3 billion over the next decade.

Indeed, while the United States is the world leader in medical devices and diagnostics, the Golden State is by far the nation's leader, accounting for a fifth of total U.S. sales and employment.

The threat of the federal tax hike on medical devices will be especially damaging to Orange County, which is the hub of California's medical device and diagnostics sector. The sector accounts for more than $11 billion in economic activity within the county, according to life-science association BIOCOM Southern California. The average O.C. salary for those employed in the sector is $108,799.

The Medical Device Manufacturing Association points out that the Obamacare tax hike will be levied on a company's total revenues, regardless of whether it makes a profit.

That means that many companies will owe more in taxes than they generate from their operations.

As MDMA President and CEO Mark Leahy recently told lawmakers in the Nation's Capital, "We are already seeing the negative impact this onerous policy is having on jobs and innovation, and America's med-tech innovators can't afford to find out what implementation of the device tax would bring."

That's why we urge senators Feinstein and Boxer to add their voices to those of their fellow Democratic senators to delay, if not repeal altogether, the scheduled implementation of the innovation-killing tax hike on life-saving medical devices.
Clueless freakin' progs.