Previous post:

Next post:

Looks Like ANOTHER Obama Middle Class Tax Increase

by Keith Koffler on December 18, 2012, 5:41 pm

President Obama vowed to protect the middle class from new taxes. One way to do this – slippery, these politicians – is to instead tax stuff the middle class is going to buy.

As everyone knows, companies react in two ways to this: they fire people, or they pass the taxes on to buyers in the form of higher prices. That is, unless we’re talking about cases of Dom Perignon, they pass it on to the middle class.

Here at White House Dossier, just to cheer you up, I’m chronicling some of the de facto middle class tax increases MOST OF YOU WILL BE PAYING as the result of the election of Barack Obama to the presidency.

Last week, I told you about the hush hush $63-per-enrollee “fee” on health plans to help cover people with pre-existing conditions. Guess who will pay the fee?

Well, hold onto to your pacemakers. Today, I want to remind you – you’ve probably heard about it, but you might not realize its significance – of the 2.3 percent tax on all medical devices. It starts in 14 days.

Obama thinks the medical device industry, which employes more than 400,000 people, will be happy with the tax because it helps pay for Obamacare, which will add millions of new customers. Well, the industry is not happy, and it’s already laying off people.

The Medical Device Manufacturers Association is hardly excited about Obama’s tradeoff:

The overwhelming majority of innovation from the medical device industry comes from smaller manufacturers who work closely with clinicians and engineers to develop the therapies and treatments of tomorrow. If it is not repealed, this tax will stifle innovation, harm patient care and weaken the position of the United States as the global leader in medical device innovation.

MDMA has pointed out that there is no data or studies that show the costs of this “innovation tax” will be offset due to an increased pool of insured beneficiaries receiving treatment. In fact, since the majority of products impacted are used in acute care settings where there are legal obligations to treat a patient, the effect of expanded coverage is not likely to increase utilization.

Rep. Erik Paulsen (R-Minn.) who chairs the House Medical Technology Caucus, says the tax could cost 40,000 jobs while harming innovation in an industry that wants TO TRY TO KEEP YOU ALIVE LONGER than you might otherwise have been kept alive.

Here’s what Paulsen had to say:


Earlier this month, a group of 16 senators and two senators-elect wrote President Obama asking him to delay the tax.

The medical technology industry directly employs over 400,000 people in the United States and is responsible for a total of two million high-skilled manufacturing jobs. … Additionally, this industry is also one of the few that enjoys a net trade surplus, significantly boosting U.S. exports around the globe.

Now I know, it seems sort of pro-forma when a group of Republicans demand something from Obama, knowing they’ll never get it.

Except these were all Democratic senators. Seems like even they get the value of low taxes when their constituents start losing their jobs.

Obama so far is adamant that the tax, which will raise about $20 billion for Obamacare, stays.

So enjoy your medical technology, my older readers. And this Christmas, give your grandchildren a gift certificate for a hearing aid, since such devices may be harder to come by when the dear ones get to be your age. They’ll love you for it.

H/T to Townhall.com.

Leave a Comment

{ 2 trackbacks }

{ 15 comments… read them below or add one }

srdem65 December 18, 2012 at 7:00 pm

Sneaky little devils.
Another surprise: Social Security receipients are getting a 1.7% raise in 2013 but they also raised the cost of MedicarePart B buy-in by 10%.

Reply

Quintus Arrius December 18, 2012 at 7:57 pm

Keith: it gets better…some of the Senators that sgned the letter are up for re-election in 2014. Namely, Senators Al “gosh darn it, I’m smart enough” Franken and our own belle from the south, Kay “I’ll let you know when I get there” Hagen.
It is rare, like a solar ecilpse, when the Dems form a circular firing squad. And the RNC gets to open its “election 2014 talking points” present early. Let’s enjoy the moment, shall we?

Reply

cincycinco December 19, 2012 at 8:57 am

“…RNC gets to open its “election 2014 talking points” present early.” – Quintus Arrius

Unfortunately, some presents should not be opened early. We live in an age of short news cycles and shorter attention spans. By 2014, what few people remember this will remember it as “George Bush’s fault”, and any attempts to remind them will just be those “desperate Old White Guy Repukicans trying to bring down a strong Black man.”

That tax stuff has numbers in it, anyway, so it makes their little heads hurt to think about it. That, in turn, makes them grateful to Obama when he buys them existing headache medicine and current tech MRIs to make sure their not growing a brain to hurt, all at taxpayer expense. They don’t think, eh, “forward” enough to realize the technology may be better for their intercranial pressure relief if this tax does NOT go “forward”. Their heads hurt too much to think about it, which makes the “Blame Bush” center fire repeatedly, as it is their last remaining speech and cognition region. It’s the most primitive, so it dies last. The rest atrophied from a complete lack of critical thinking for an extended period of years, starting with public school.

There are only two real talking points now.
“It’s George Bush’s Fault”
“Your’re a racist”.

These fit every occasion. Take the topic above, for example;

“MDMA has pointed out that there is no data or studies that show the costs of this “innovation tax” will be offset due to an increased pool of insured beneficiaries receiving treatment. In fact, since the majority of products impacted are used in acute care settings where there are legal obligations to treat a patient, the effect of expanded coverage is not likely to increase utilization.”

It’s George Bush’s fault, because he was such an awful, lying President that neglected Government funding of health care for so long that Obamacare is going to have to collect WAY more taxes to compensate.

“Obama thinks the medical device industry, which employes more than 400,000 people, will be happy with the tax because it helps pay for Obamacare, which will add millions of new customers.”

You don’t need to go any further than “Obama thinks”. (Whether he does or not is immaterial for this example.) Obama wants this. Did you notice he’s Black? Of course you do, that’s the problem! Do you realize he’s the first Black President? You can’t stand that, can you?! Don’t you realize that your opposition to him comes from your inherent racism that you can’t avoid because White people have taught you that Blacks are somehow inferior for so long? ESPECIALLY if you ARE white. You REALLY have to put in some effort in to try to overcome your hatred if you are;

“How would you describe the stages of becoming a white anti-racist/ally?
Sejal:

1. Realize the meanings behind privilege, racism and whiteness.
Look within before you look outward. How do you relate
to the definitions? Pinpoint the ways in which you experience
privilege as a white person.
2. Look outward, find out the historical, global and social patterns of
the effects of racism and other forms of oppression.
3. Act. Realize that you want to do something about this system,
and come at it with a sensitivity and understanding that you come
from a privileged background whether you like it or not”

http://www.tolerance.org/activity/white-anti-racism-living-legacy

(sarc on)

A Black President wants something for your own good, and you’re too blinded by your hatred for his color to let him do it. In fact, you would destroy yourself and your country by rejecting him because he’s black. You’re so racist! He’s just going to have to overtop that. For your own good, you bigoted honky. Sheesh, you’re unworthy!

(sarc off)

And THAT’s why this really won’t help, come 2014.

Sigh. I wish you were right. I’m just afraid you’re not.

Reply

Girly1 December 19, 2012 at 9:20 am

“Obama thinks the medical device industry, which employes more than 400,000 people, will be happy with the tax because it helps pay for Obamacare, which will add millions of new customers.”

More flawed logic. Most consumers of medical devices are on Medicare, Medicaid or private insurance. Most seniors on Medicare will be denied pacemakers, cardiac stents, artificial joints, CT scans, etc. What good are the medical devices when physicians are not there to perform the surgeries? Many of the smaller mfg. companies will be supplying Europe and Asia first – U.S. last. A 2.3% tax on gross receipts for small companies is disastrous, considering all the corporate and State taxes, etc.

Reply

mo1 December 18, 2012 at 8:00 pm

Any bozo who claims he/she did not know what was in the bill he/she voted for should not be reelected. And how the President thought adding a sales tax on devices purcahsed by those on Medicare/Medicare would reduce the cost of health care for the federal government is just not fathomable. Unfortunately, he was relected. Fortunately he cannot run again.

Reply

Lisa December 18, 2012 at 8:52 pm

Don’t be so quick to say he won’t run again. His campaign is asking for money…still. I would not put it past him to try to force another term down our throats. And yes, I know he is legally limited to 2 terms…but this is Obama we;re talking about and I don’t trust him

Reply

Martha Trowbridge December 18, 2012 at 8:32 pm

Forensic investigation of voting machines accompanied by certified CPA Audits of voters / votes cast will provide overwhelming evidence that the 2012 Elections were heisted.

http://citizensbureauofinvestigation.org/wordpress/c-b-i-central-command-center

A citizens audit of 2008 Obama voters in Milwaukee ALONE revealed that more than 150,000 – all African-American – could not be located in 2012. No significant Obama voter fraud, eh?

Do the math, America.

Reply

cindylou December 18, 2012 at 8:42 pm

um what about CUTS? is that a dirty word now? should we call it the “c word”?

Reply

Susan December 18, 2012 at 9:56 pm

There is a whole lot more than this medical device tax awaiting us when the ball drops at Times Square on New Year’s Eve…

http://www.atr.org/full-list-obamacare-tax-hikes-a6996

By the way, does anybody know who gets to define what a medical device is?
Kathleen “The Secretary Shall Determine” Sebelius?

Reply

srdem65 December 18, 2012 at 10:13 pm

Let’s see.
If the IRS conficates money from you for not buying health insurance, it’s not a penalty, it’s a tax commonly referred to at the IRS as the “who do you think you are” tax.
A former 40 hour a week employee is downgraded to 28 hours a week making them part-time workers who work full-time..
Unemployment benefits are taxable because the worker earned that money by not having a job, and it’s good for the economy.
Homeless people are eligible for Obamaphones in case someone calls them to come to work.
Medical devices are anything they say they are, from pacemakers to artificial knee caps to Grandpa’s cane, commonly referred to at the IRS as the “it’s your own fault you’re sick” tax..

Reply

Susan December 18, 2012 at 11:10 pm

Thanks for clarifying, srdem. Also found out my reading glasses are considered a medical device. Guess the IRS refers to that as the “it’s your own fault you’re an old codger” tax. This would all be so funny if it wasn’t so outrageous…

Reply

srdem65 December 19, 2012 at 12:39 am

My pleasure.
DC double-speak is hard to interpret but it can be done if you suspend your common sense.
Things that the government claims are “free” aren’t, earning $250K a year makes one a millionaire, and so on.

Reply

Chas December 19, 2012 at 12:54 am

Minnesota DFL’ers Franken and Klobuchar, ( Al’s new comedy partner Amy) both came out last week trying to get this tax repealed. If these idiots get re-elected again in 2014,,,,, God help us all. I guess Pelosi was right, you have to pass the bill to find out whats in it.

Reply

Just2old December 19, 2012 at 5:39 am

We have officially gone past the ridiculous and entered into the absurd.

Reply

kim January 2, 2013 at 5:29 am

I think before they pass the tax increases on middle or lower class people they should have to work for minimum wage & have more taxes taken out & still try to feed a family as well as pay their bills. It pretty much impossible. while the rich are sitting in their mansions eating lobster & caviar the middle & lower classes have to go to food banks to feed their children. Its just not right.

Reply