Battle over medical device tax heats up

  • Article by: JIM SPENCER , Star Tribune
  • Updated: November 24, 2012 - 9:01 PM

Repealing it now won't be easy. There's no consensus on how to replace the lost revenue.

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sek2undrstndNov. 24, 1211:01 PM

How about these medical device companies build a better product with better quality. Every other day there's another report about problems with another product. Just read a report about St. Jude Medical's problems with their Durata leads. It's about time the medical device industry stops making excuses and blaming their losses on the medical device tax. By the way, if you have a good product you will be selling a lot more of them once Obamacare goes into full effect.

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pitythefoolsNov. 25, 12 5:27 AM

Obamacare is about to drop 50 million potential new customers on these med device companies laps. They stand to make a fortune from Obamacare, and they whine about a 2.3% tax? Talk about looking a gift horse in the mouth. Pure corporate unappreciative greed.

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ronniereaganNov. 25, 12 6:54 AM

Pity- It is more complicated than that. This tax is on GROSS sales- not income. Imgaine having a business in which you could possibly not make a profit yet still have a large tax burden. Further- once Obamacare is fully in place- it will be massively under-funded so they will be forced to cut reimbursement so low that these companies will not survive. So you can either look at the complete picture or you can blame the Rich, Bush or Halliburton.

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pitythefoolsNov. 25, 12 7:29 AM

ronniereagan: "Pity- It is more complicated than that. This tax is on GROSS sales- not income. Imgaine having a business in which you could possibly not make a profit yet still have a large tax burden."

You mean like just about every Retailer in the Country? Do you REALLY think that med device companies have less than a 2.3% net profit margin? And that 50 million potential new customers won't increase net revenue and profit margins? Just why do you think the government will cut reimbursements for medical devices when they won't even negotiate for drug prices, unlike every other industrialized country on earth? You can either look at the real picture, or keep believing Rush, Hannity and Fox.

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ctifferNov. 25, 12 8:06 AM

pitythefools - what do you think the profit margin is for med device companies? What do you think would be an acceptable profit margin? You also draw the comparison between retailers and manufacturers. What gross receipts tax exists on retailers? Certainly you are not thinking of a sales tax, are you? Sales tax is paid 100% by the consumer, not te seller.

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lawstarNov. 25, 12 8:06 AM

pitythefools and ronniereagan. We will know in a year which of the two of you is correct. The smart money is on ronnie.

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pitythefoolsNov. 25, 12 8:25 AM

ctiffer: "Sales tax is paid 100% by the consumer, not te seller."

I thought the standard conservative line was that ALL business taxes are paid by the Consumer.

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mchuskerNov. 25, 12 8:25 AM

Remember when Nancy Pelosi said we must pass this bill (Obamacare) before we read it ? My recall is that Amy, Al and Keith all voted for it, hence they voted for this tax. Now, they are having second thoughts, wait until it further rolls out in 2014 and the facts about this partially thought out legislation become further illuminated. Nancy, Amy, Al and Keith don't have to worry personally, they are exempt from living with what they dumped on the masses...

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brianjapanNov. 25, 12 8:25 AM

So funny that our liberal senators oppose ANY kind of tax increase! All libs love tax increases.

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uparentNov. 25, 12 8:30 AM

lawstar: "pitythefools and ronniereagan. We will know in a year which of the two of you is correct. The smart money is on ronnie."

I find that the functional equivalent of all the polls that showed Mitt was going to win the election.

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