Obama New Taxes-- and effects

BY EVAN BAYH (Democrat former governor and U.S Senator writing in the Wall Street Journal, Friday, September 28, 2012)

The Supreme Court decision in June upholding the Affordable Care Act leaves in place a tax on medical devices that threatens thousands of American jobs and our global competitiveness. It will also stifle critical medical innovation in the industry that gave us defibrillators, pacemakers, artificial joints, stents, chemotherapy delivery systems and almost every device we depend on to save lives.

The 2.3% tax will be charged to manufacturers on each sale and takes effect in January. Many U.S. device companies, in response, have already announced layoffs, canceled plans for domestic expansion and slashed research-and-development budgets.

This is not a tax on profits but on sales. It amounts to about a 15% tax on profits. This, in addition to a 35% Corporate tax will equal a 50% income tax on profits. The U.S. imports more that we export but we export over 5 billion dollars a year in medical devices. Just think about all the devices and technology that has saved so many lives. Medical device companies who planned to build more medical facilities here in the U.S. have already begun to cancel their plans to build. Many, instead are making plans to move production overseas. They estimate that 30 billion dollars will also be taken out of research and development. What life-saving devices might not be developed because of all this?

Incidentally, the thousands of jobs that will be lost under this new tax are jobs that average $58,000 a year. The national average for all jobs in the country is $41,673.

So we lose jobs, medical improvements and push U.S. companies to move production overseas.What kind of insanity is this and what is the goal here? The more we learn about Obamacare the worse it gets for this country.

Another article from September 28th commented that while Obamacare was supposed to save citizens money it is becoming quite clear it is going to do just the opposite. And the new regulations are going to be a bureaucratic nightmare which will also translate into higher costs just to handle them. It additionally said that the biggest burden will fall upon the middle class.

Found some more info

5 “Hidden” Obamacare Taxes That Will Crush The Middle Class

Get ready to be blindsided by a barrage of new taxes. $569 billion worth…

They’ll be coming courtesy of the Affordable Care Act, otherwise known as Obamacare.

And they won’t just be affecting those who make over $250,000 as you’ll soon see. The bulk of these taxes will be passed on directly to the middle class.

That’s because while a majority of these “stealth taxes” were designed to be taxes on businesses, they’re actually be transferred directly to ordinary citizens.

They include an investment income surtax, a medicate payroll tax, even a “tanning tax” on those who utilize indoor tanning services.

“Many of those [hidden] taxes, especially those on hospitals, insurers and medical device manufacturers, will ultimately be passed on through higher health costs,” said Michael Tanner an expert on the healthcare law.

Editor’s note: How much extra will you have to pay? See the complete list of new Obamacare taxes here.

Of course, the Obamacare plan was primarily designed to decrease the number of uninsured Americans and reduce healthcare costs.

Many experts are saying it will have the opposite exact opposite effect.

That’s why Republicans hope to strike down Obamacare should they nab a presidential victory in November.

They claim that the taxes needed to pay for Obamacare will crush the middle class and most U.S. taxpayers, as well as trigger job losses in affected industries.

According to the Congressional Budget Office, 76% of those who stand to be slapped with the penalty (the Supreme Court calls it a tax) for not carrying insurance are those earning less than $120,000. The penalty for the average American family is $4,700 a year in new taxes.

Other new Obamacare taxes will hit drug companies (totaling $27 billion), and medical device makers ($20 billion), as well as enforce new reporting requirements and regulations on physicians.