First, let me say that 0bamacare is still, and always has been, a piece of legislative effluent from the cesspool mind of an illegal alien usurper.
That being said, I also am NOT ready to buy into this notion either, that these companies are laying off due to the taxes included in the commie crap that is 0bamacare.
The tax applies to all medical device makers. As with other taxes, manufacturers will pass this along to consumers via higher prices. If there is evidence to the contrary, I’ve not seen it.
Perhaps the fine economic minds on FR can explain.
Actually, I don’t think this is the case. I work in the Medical Device industry. Most medical device products are not directly purchased by consumers but by intermediaries - clinical labs, hospitals, etc. - who are then dealing with insurance companies who negotiate the price further. There is no way to directly raise the price. More companies than not will simply eat the cost - and act accordingly.
Yup!...and liberal logic says that will make Obama care cheaper because Obamacare is free and the Govt has more tax money!
The tax is on gross sales..2.5%. Since most manufacturers have an after tax profit of around 5% of sales..it means their profits are cut by 50%. Now they can raise prices, but then volume may fall and foreign competition might take some of their sales. Plus some products that are marginal may start being a loss and be eliminated. All that means that any company will try to cut expenses and less than good profit lines..and that means lower employment.
But the medical market is NOT the free market.
I've been watching my TriCare statements a lot closer this year and I'm shocked to see my $180 specialist being paid $19.00 for a visit now. These prices are negotiated by the insurance companies and the consumer rarely knows what is being paid for them.