From Reuters. "The US Internal Revenue Service on Wednesday released final rules for a new tax on medical devices, products ranging from surgical sutures to knee replacement implants, that starts next year as part of [Obamacare]. The 2.3% tax must be paid, effective after December 31, by device-makers on their gross sales.So the tax is on the companies that make the medical devices.
"The tax is expected to raise $29 billion in government revenues through 2022. Companies including Boston Scientific Corp, 3M Co and Kimberly-Clark Corp have been lobbying the US Congress for a repeal of the tax," but that will not happen. "Many medical devices that are sold over-the-counter -- such eyeglasses, contact lenses and hearing aids -- are exempt from the tax...
"The tax applies mostly to devices used and implanted by medical professionals," but it will encompass a lot of things that you have never thought of as a medical device. So earlier this week the IRS announced the rules for a 3.8% tax, and then there was the 1% income tax surcharge, and the 1.8% surcharge on capital gains for health care. Yeah, on your house.
Well, gee...what do you think is going to happen? That's right, the medical companies will raise the price of their products to offset the price of the tax. The consumer will pay that tax.
Well, not every consumer. The poor of course won't have to pay anything extra, they'll get a waiver as they always do. The middle class and rich will pay it. And the middle class can't afford it.
It's just ridiculous.