It is true! Many Bradley Countians as well as many Americans are starting to see a new tax being applied to the purchase of many products to include medical devices as well as items that you would not think would be categorized as medical devices.
When the Medical Device Tax started hitting the retail stores yesterday, January 1, 2013, people began scratching their heads at the new tax at the bottom of their reciept of 2.3 percent. “I didn’t buy a medical device, I bought Q tips, a fishing rod and some ammo for my Ruger and I got taxed an additional 2.3 percent.” One consumer was overheard saying at the checkout counter recently.
Congress recently voted to tweak the bill because the bill came across as purely another retail tax. The ever encompassing IRS code and FDA labeling codes are what is driving the hordes of extra items categorized as “medical devices.”
When I think of medical devices I think of splints, stents, prosthetic hips and walkers. The IRS and our Federal Government sees “medical devices” as fishing rods, bows and arrows, ammo, Q tips and gas guzzling cars.
The new medical device tax started yesterday will be one of many planned taxes, that will take precious income away from many hard working Americans and place it into the US Treasuries pockets and assorted other coffers to assist in funding the dreaded unconstitutional, socialistic OBAMACARE Healthcare system.
The medical device tax is expected to raise upward of 40 billion dollars every decade to offset the cost of providing care for the influx of 30 to 40 million presently uninsured Americans.
As the OBAMACARE health system is fully implemented in 2014 with it’s many non restraints such as the unlimited pre existing provision, costs are expected to sore into the 100s of millions perhaps trillions some analysts say, over the next decade. This will leave many unemployed, broke and desolate, looking for government handout
to just survive in the environment the fake president has directed us with his hugely expensive healthcare tax.
Aside from the cost to us, our grandchildren and their grandchildren extensive job loss will be a fallout, numerous “medical device companies” closed, pack up and move overseas via outsourcing or simply close their doors.
The medical device industry employs around 420,000 state side
and millions world wide. Analysts are predicting a loss of 42,000 jobs in the first year as Americans begin to find out what items are taxes heavily and begin to dodge the tax and many companies that may only see a 2 to 3 percent profit margin will simply have to shut the doors.
Some say, just don’t label your products as medical devices and avoid the tax, well the IRS and the Feds have that covered also. If a company attempts to avoid the excise tax which to date has very loose guidelines as to what a medical device is will be faced with up to 10,000 dollars, more likely a daily fine of
1,000 dollars a day for trying to manipulate the system to their benefit.
The death spiral of our economy is just beginning and with each new tax the Senate, Congress and this fake president pile up on we are one step closer to the socialist utopia many of our elected and nonelected bureaucrats have been trying so hard to create.
Our present tax structure will be dim by comparison to the one that is coming in the next decade. I have often joked that eventually the government will receive 100 percent or more
Of my paycheck just as the Cloward-Piven strategists have predicted. Overload and overwhelm our economic system and you will have created a socialist America with Communistic overtones.
Please continue to read the links below directly from the IRS website. What you will not see in most cases is strictly medical devices but an array of assorted retail items and that list is only expected to grow as the extra capital is needed to fund OBAMACARE. what you will not see directly, but you will see higher prices for the products you purchase daily, is the import/export taxes and the extra taxes on manufacturers up to 10 to 12 percent just to make “medical devices!”
The following discussion of manufacturers taxes applies to the tax on:
Sport fishing equipment;
Fishing rods and fishing poles;
Electric outboard motors;
Fishing tackle boxes;
Bows, quivers, broadheads, and points;
Gas guzzler automobiles; and
Q1. What is the medical device excise tax?
A1. Section 4191 of the Internal Revenue Code imposes an excise tax on the sale of certain medical devices by the manufacturer or importer of the device.
Q2. When does the tax go into effect?
A2. The tax applies to sales of taxable medical devices after Dec. 31, 2012.
Q3. How much is the tax?
A3. The tax is 2.3 percent of the sale price of the taxable medical device. See Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information on the determination of sale price.