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  • Side Effects: Medical Devices Tax Will Costs Jobs

    There’s only one way to pull the economy out of the doldrums. We need more jobs. Now.

    As Obamacare inched its way toward passage, boosters of the radical legislation began making bold new claims about its virtues.  The bill, they said, would do far more than simply fix the health care system; it would create jobs and boost the economy, too.

    [Oddly, they stopped short of claiming it would also help melt away the pounds as you sleep.]

    Not surprisingly, the early evidence is quickly proving their claims to be false.

    Consider Massachusetts.  It is home to a large portion of the nation’s life sciences industry.  That industry now faces major job losses due to the new Obamacare tax on medical devices. The tax is intended to raise $2.2 billion a year to help foot the bill for Obamacare.

    Massachusetts Governor Deval Patrick, a Democrat, has been a vocal supporter of President Obama and his health care agenda.  But now that the deal is done, even Patrick admits he’s worried about what Obamacare will do to the commonwealth’s economy.

    Yesterday, the Boston Herald reports, Patrick said he was “obviously concerned about the medical device burden here,” adding, “You better believe I will work to make modifications” if the bill is found to be an “impediment to that industry.”

    It’s not a matter of “if,” but “when.”  Members of the industry are already raising red flags that the tax will bite hard. “‘This bill is a jobs killer,’ said Ernie Whiton, chief financial officer of Chelmsford’s Zoll Medical Corp., which employs about 650 people in Massachusetts. ‘We could be forced to (move) manufacturing overseas if we can’t pass along these costs to our customers.’”

    So long, jobs.

    If Congress had been serious about stimulating the economy, they would never have voted for Obamacare.  Instead, they would have worked to prevent new tax increases until unemployment falls.

    When it comes to job creation, Obamacare completely misses the mark—unless you count the thousands of IRS slots needed to enforce the bill.  To learn more about the right approach for creating jobs, click here.

    Posted in Obamacare [slideshow_deploy]

    23 Responses to Side Effects: Medical Devices Tax Will Costs Jobs

    1. Chris in big bEar(ca says:

      I'm tired and sick from too much restraint for civility's (civilities'?) sake/ sakes..any how, here goes. One thing I haven't really heard at all being discussed relative to the debate being waged over costs associated with this nefarious plan (which I would summarily state is only about throwing a trillion dollars that we have to borrow, at a billion dollar problem we already can't pay for; and the real end-product is to cause the government to have much more surveillance on the taxpayers by document-trailing everybody through their health-care hells, and add to that more potential crimes each man woman and child can be charged with, conclusion:Lawyers will not suffer under this unfortunate economy)..one thing have not really heard is, in the cost/shooting-war debate is the real cost factor of how much one congressman's time&expenses x 435 + 100% of 100 senate Bozos and all their staffs..+the entire federal, state, and local government apparatuses, and add all the impertinent costs like utilities, time x productivity lost because of TV-watching, etc., etc.; and then what you have is an actual estimate of the cost this bill is actually going to cost us americans. Bon apetit!

    2. MJF, CT says:

      So long jobs, so long the best medical treatment in the world. You will wait for months for a heart bypass but if you want an abortion or sex change, step right up, your table is waiting!

      • bellaance says:

        I understand your sentiment MJF, CT, however, PPACA does not cover abortions except to protect the life of the mother. It is stipulated multiple times throughout the bill. When we as Conservatives or Republicans make such inflammatory comments, we detract from the conversation and make ourselves look like buffoons. We hand the opposing side the arsenal AND encourage them to shoot. What is the sense in that?

    3. ricp, Lackawanna, NY says:

      During the televised "health care summit" Speaker Pelosi stated that 400,000 new jobs would be created IMMEDIATELY upon the health care bill being signed into law.

      It's been about 10 days has anyone seen any of these jobs yet? I mean, aside from the 16,000 unfunded IRS "health police" the Law requires? I know that POTUS has eliminated approximately 32,000 banking jobs associated with school loans but where are the immediate jobs the Speaker promised us?

    4. MrShorty - Arizona says:

      I've got a great idea for Hollywood…reinstate the game show "To Tell The Truth". They could randomly select 5 people from their studio audience to be panelists in the show. The emcee would display a section or paragraph from Obamacare on the screen (the contestants would have the same thing shown on their individual monitors). Then the emcee would show a political clip from an advocate and a non-advocate on the screen. The contestants would have 15 seconds to identify which one was telling the truth.

      This game show would achieve two objectives at once….educate the people about what the bill will do for them and save the government millions of dollars in their planned “education” program to explain the bill.

      Given the percentage of the population that has serious concerns about the actual details in the bill, I think the show’s ratings would soar.

    5. Lloyd Scallan - New says:

      Does the author honestly believes than anything the Democrat controlled Congress or Obama said about "job creation" is real? They LIE! Their plan is to bring down our capitalist system by providing more and more government dependency programs that will further "spread the wealth" to those that look to the government for every aspect of their lives. As stated by the New York Times,

      ObamaCare is about "wealth redistribution", not about creating jobs. Obama and

      the Dems know full well what they are doing.

    6. Don Harper, Lubbock, says:

      If device manufacturers can pass on the cost of these taxes to their customers, the cost of medical care to these customers will go up, right? If they can't pass on the cost, they move overseas, reduce number of employees, or go bankrupt. Only in Obamaland is this a win-win situation.

    7. TKD, OH says:

      Of COURSE it's a job killing bill!!! They won't be happy until we are all unemployed and living off their hand-outs! I pray that come October we can take back the Senate and Congress and figure out a way to overturn this monstrosity!

    8. Jackson, Denton, TX says:

      The real criminals are in the legislature and executive office where they remain exempt from the crap they just produced. Vote all the morons out NOW !!!

    9. Jeanne Stotler,Woodb says:

      As a comanche chief said" You(BHO, Pelosi and Reid) speak with forked tongues" I have the greatest wish, to have one day where BHO is not in front of cameras and teleprompters spieling out his lies.

    10. Drew Page, IL says:

      There are millions of people out there, including illegal aliens, who didn't have access to health insurance until Obama's health care reform was passed. I dare say it will take years before such coverage becomes available to them. The people who don't have health care coverage really don't care what it costs everyone else to provide it to them.

      In addition to these people, there are others who have health coverage, but want to see everyone else have it as well. These people delude themselves into thinking that Obama's promises are true, that the health care reform legislation will not only pay for itself, but will reduce premiums for everyone and will create hundreds of thousands of new jobs.

      But it's time to consider how many statements of Mr. Obama and his supporters have turned out to be true. He and his administration are spending this country into oblivion.

    11. therese says:

      I said it once and I will say it again. I can invision grown men and women who voted for this horrible bill, to be sobbing years down the road when they find out that they were responsible for the beginning of the downfall of our great nation.
      I only pray that we can change the direction this corrupt and immoral government is taking us.

    12. Matt , Oregon says:

      For Zoll I have one question. Why cant you pass this cost on to the consumer? Is there some Law or Act that keeps you from passing it on? Why is it always American manfacturing response to everything to threaten to go overseas. Why dont you sell more of your products overseas? What can you do to be more efficient at manufacturing. Why not freeze wages for a while? Isnt it better to have job that pays something than to not have a job.

    13. Joe, Las Vegas says:

      Note to Matt, Oregon: Economics 101:

      In a competitive environment, the cost of a product is determined by the market. Manufacturers in that market must keep their costs at a minimum in order to compete. They don't have many ways to decrease costs, since most costs are fixed or not easily reduced, like property taxes, insurance, utilities, loans, etc. Usually, the only way to reduce costs in the short term is to lay workers off. But there is a limit to how many can be laid off, because you can't reduce staff below what is required to stay in business. If you attempt to reduce profits, then stock prices will fall, and their stock will be less attractive. Would you want to buy stock in a business that doesn't make any money?

      In a international market, if you attempt to pass the costs on to consumers, the consumers will buy the product from another company that sells the product cheaper. Often, the best option for a company is to move the manufacturing to a country that has lower production costs.

    14. BigKev03 says:

      I think Pelosi and Obama meant 400,00 more jobs in India and China because that is where the jobs will go when the companies are taxed on manufacturign such devices.

    15. Louis Wilcox, florid says:

      As more time goes by, we will continue to hear about another "surprise" in the health care bill. How can any rational, intelligent person be surprised that negative consequences are popping up. This is what happens when the authors of a bill have no clue how the free market works and a bill is rushed thru without proper vetting. The rush to pass was a big clue. Another big clue was when Pilosi said you have to pass the bill to see what's in it. Seriously…that is the most ignorant statement I think I have ever heard. We have now reached the point where those in power at the federal level are dangerous to this country and it's people.

    16. Pingback: MoConservativePatriot.com » Obamacare’s “unintended”(a-hem) Side Effects

    17. Carl Davis says:

      Can anyone dispute that my buddy Rush Limbaugh was way ahead of the curve when he stated "I hope he fails"

      Folks scoffed and said it was wrong to make a remark like that–but look where we are and where we're goin'–

      OBama has been emboldened and his demolition of the Constitutional Gov't of the USA in in deadly peril–God Bless America and please God–save our Country!

    18. Navdeep says:

      The blog contains quite a few important aspects about medical care, and the other methodologies as how goveronment has been imposing taxes quite abruptly.

    19. underpaid says:

      There is a lot of anger about this tax. Here is my perspective on this. First I work for a large medical company that makes medical products. They called an emergency meeting to have us all sign a paper how we are against it. Then our CEO told us how mad he was about it all and said that he found health insurance that will have a lower cost for us all. What we got, was a health plan that was so expensive that had a deductible that was equal to HALF of most production employees take home for an entire year. Then they were nice enough to roll back our wages. So what do u think happened? Most if the immigrant employees stopped taking the health insurance and decided that government assistance was better and cheaper. So YES am I for it! With all the money they are sitting on its their own employees who are getting the worst of it. And those of us having to PAY for the uninsured.

    20. Pingback: Today in Washington - September 23, 2010 | RedState

    21. Pingback: House Hearing: Obamacare Threatens American Medical Innovation | The Foundry: Conservative Policy News.

    22. Pingback: House Hearing: Obamacare Threatens American Medical Innovation

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