Among the five new ObamaCare tax hikes that kicked in Jan. 1, one in particular is attracting opposition from both Republicans and Democrats: the tax on medical devices. Last month, 18 Democratic senators and senators-elect (including New York’s own Sens. Charles Schumer and Kirsten Gillibrand) wrote Majority Leader Harry Reid, asking him to delay implementation of this 2.3 percent excise tax on the sales of everything from pacemakers to tongue depressors. The House already voted to repeal the tax, which is projected to extract as much as $29 billion from medical-device firms.
Reply 1 - Posted by:
Mass Minority, 1/8/2013 5:48:11 AM (No. 9104377)
If you wanted to design a tax to destroy small tech firms you could not come up with a better scheme than this. Here is why.
Say you own a small company developing a fast home test for Salmonella, or a more accurate over the counter drug test kit for parents. These are medical devices as defined by the FDA. Your burn rate is 7 million dollars a year through 3 years development and approval. After launch your burn rate increases from 7 million to 8 million a year to cover manufacturing (and all the regulatory compliance that comes with it). Your tests are succesful at $20 a pop and your profit margin is a healthy 60%, you clear$12 for each test.
Sales ramp ncely $1,250,00 1st year, $3,500,000 second year, $6.5 million third year and 9 million each year after that. You can confidently tell investors in 4 years you will show $1,000,000 profit and have a second or third product on line.
You will have spent $21Million through launch and $32million through the first 4 years on the market.
Normally you would not have any taxable income until you had recouped the investment costs, ie $53million, give or take. so after 7 Years you have made $20.5million so your tax bill is still $0.
But in this new world your tax bill over those last three years is $471,000. Thats a half dozen full time workers at good salaries with good benefits. You have two choices, fire 6 people or raise your selling price to $21.
Taxes raise revenue ONLY by taking it away from the private sector, why is this a concept the hogs at the trough cannot seem to ever grasp?
Reply 2 - Posted by:
Country Boy, 1/8/2013 6:42:04 AM (No. 9104415)
Medical devices is one of the few bastions of capitalism left in the U.S. It is comparable to the auto industry of 100 years ago. The Key to it, the common denominator is INNOVATION (genius + hard work.) This is something completely impossible for socialist like obama to understand, much less do.
For same reason, his Keynesian cr@p (180 degress opposite to capitalism) is crashing and burning at every step.
If Med Device tax gets rolled back, (along with Keystone Pipeline being approved?) obama is definitely getting some huge pushback. His power is getting drained.
Stupid question - why did he vote for it if he hates it?
Reply 4 - Posted by:
Mass Minority, 1/8/2013 7:56:44 AM (No. 9104502)
#2, and everyone else as well, did you note the throw away line about cost to market?I´ll paraphrase, the average cost of bringing a medical device to market is $31million. Of that cost $24million is spent on regulatory compliance.
Get that? 75% of the cost of bringing a device to market goes to satisfying the FDA, some of that creates jobs in support labs and contract research but a big chunk of it goes to simply generating reams of reports no one will ever read and submitting them to multilpe beurocrats who will decide how much more you will spend until this private sector dropout with a bachelors degree in Womyns Studies can decide your cutting edge medical breakthrough is "safe" to market.
The average cost of bringing a Drug to market is now over $1Billion (with a B. 15 years ago when I was working in the Big Pharma R&D world that number was closer to $100Million. What has caused the average cost of drug development to go up 1000% in 15 years. Heres a hint, the R&D time to trials has gone down.
Regulation is killing us, we have gone FAR FAR beyond what is needed to keep us "safe". We are deep into the realm of make work to keep useless beurocrats employed.
The medical device tax is the beginning of a long list of specific elements of Obamacare that people will dislike. If the GOP had any sense they would start tallying up the offensive affects of the legislation in order to get many of them repealed.
FTA: Michigan-based Stryker plans to eliminate 1,170 jobs. More than 100 of those cuts will come at the company’s Orchard Park and West Seneca facilities in western New York.
pat stryker, heir to the stryker fortune is a far left Colorado activist. Wonder what pat thinks of the medical device tax component of state run health care? Perhaps she obtained enough stimulas money kickbacks from zippy to make it all better.
NY state is one of the handful with a thriving medical device industry. Why did the great brains Schumer and Gillibrand vote for the tax?? Oh yeah, they had to pass the bill to find out what was in it. We are being led by morons...we are so screwed.
Plus the fact that the FDA has established an annual fee for all medical device mfg, importers, retail etc..for us about 3500. My partner and I invented a device to extract loose baby teeth. It´s hard to argue with the FDA that our product is NOT a medical device, rather an "enhanced" close pin for gripping, the bureacrats disagree. If this fee isn´t rolled back, our little gatorgripper company is done.
Last year Al Franken (MN) visited the Minneapolis offices of Boston Scientific, a company that designs medical devices. My brother writes the technical manuals for their products. During his visit, Franken insulted the CEOs and dismissed employees´ concerns about the tax on medical devices. Now Franken is "shocked" to find out about this. (Franken and Amy Klobucharl have come out against the tax, but they both voted for the bill.)
In the very first example, and all examples, it is not just a matter of raising the selling price. There is a limit to what can be charged because of insurance and government reimbursement schedules. This tax squeezes the manufacturer and removes the incentive.
Well, that was quick. Just three days after it began, the debate about what we do at the movies has reached its nadir. A quick catch-up: On Monday, tech guy Hunter Walk wrote a blog post saying that movie theaters should offer screenings with brighter lighting and WiFi, where people who want to can tweet and text and do all kinds of other "second screen experience" things. Many people found this proposal appalling. Or, if not appalling, certainly a little depressing. Then this morning, another tech guy, writer and self-described entrepreneur Anil Dash, wrote a smug, scolding piece
Two former UMass-Dartmouth students with ties to Boston Marathon terror bombing suspect Dzhokhar Tsarnaev were indicted today on obstruction of justice charges for allegedly trying to impede the Boston Marathon terror bombing investigation. Kazakhstan nationals Dias Kadyrbayev, 19, and Azamat Tazhayakov, 19, are accused of helping to get rid of incriminating evidence that Tsarnaev left behind in his college dorm room on April 18, three days after the terror bombing killed three and wounded 260 in Boston. The two face charges of conspiracy to obstruct justice and obstruction of justice.
DES MOINES, Iowa -- At least three people in two states have beaten astronomical odds to become the nation´s latest Powerball millionaires. Sue Dooley, senior drawing manager production coordinator for the Multi-State Lottery Association, said late Wednesday night that three tickets matched the winning numbers and will split the lottery´s latest massive jackpot: $448 million. "We had three grand prize winners," Dooley said. "One was in Minnesota and two were in New Jersey." The winning numbers drawn Wednesday night were: 05, 25, 30, 58, 59 and Powerball 32.
In a twist of irony, a West Virginia woman is trying to collect money from a collection agency. Diana Mey, of Wheeling, W.Va., won the largest judgment ever against an abusive debt collection company -- more than $10 million. "I´m a mom and I´m a housewife, and I´m an accidental activist," Mey said. From her small-town home base in Wheeling, Mey went after a debt collection empire that hounds people nationwide -- and won. But she still hasn´t received any money. "I don´t know that I´ll ever collect a dime," she said, "but if I can get their operation
A poll released Friday by Public Policy Polling found that Alaska voters would pick former Secretary of State Hillary Clinton over the state´s former Republican governor, Sarah Palin, if the two women were to face off in the 2016 presidential election. Clinton led with 49 percent in the hypothetical match-up, with Palin at 40 percent, a nine-point gap. As of July 3, Republicans comprised 27 percent of the state´s registered voters and Democrats made up just 14 percent. The last time Alaskans opted for the Democrats´ presidential candidate was in 1964. Clinton trails five other hypothetical GOP candidates –
Radical lawyer Lynne Stewart is pleading for compassionate release from prison, saying she has only months to live. Too bad Stewart showed no such compassion when she aided and abetted her convicted client, Omar Abdel Rahman, who is serving a life sentence for plotting a series of assassinations and bombings that includes the first attack on the World Trade Center. Stewart herself was later convicted of providing material support for terrorists by transmitting messages from Rahman to his followers. Now Stewart is asking for release on the grounds that she is suffering from Stage IV cancer.
In a video emailed to supporters last week, mayoral candidate Anthony Weiner made a plea to New York voters. “I know that there are newspaper editors and other politicians that say, boy I wish that guy Weiner would quit,” he said into the camera. “They don’t know New York, [they] certainly don’t know me. Quit isn’t the way we roll in New York City. We fight through tough things.” But “tough” doesn’t even begin to describe Weiner’s predicament. After revelations that Weiner had continued to exchange lewd messages with strangers over the internet a year after he resigned
We might never know if the man we´ve been watching for a couple of decades now ever was "Alex being Alex." It was nearly six years ago that boyhood friend and fellow major-leaguer Doug Mientkiewicz said of Alex Rodriguez, "Sometimes, I just want to shake him and say, ´Would you just be Alex?´ "If he would let people into his personal side, people would get him," said Mientkiewicz, who grew up in the same part of Miami as Rodriguez, played on the same high school team and spent 12 years in the major leagues. "Alex´s biggest detriment is Alex,
MILWAUKEE — Maryland Gov. Martin O’Malley, speaking candidly to a group of reporters Saturday, said he has spent the last several months weighing a bid for the presidency and laying what he called the “framework of a candidacy for 2016.” O’Malley last spoke at length about his presidential ambitions in April, when he told The Baltimore Sun he would give “serious consideration” to a White House race as he rounds out what will be his second and last term as governor of Maryland. Asked how that process has been going so far, O’Malley said, “It’s going well.” He described a handful
FOR ALL the soaring triumphs, soul-testing trials, and crushing tragedies that would befall Jack and Jackie during his historic presidency, the most celebrated couple in the world would finally bridge the yawning emotional chasm between them only within the walls of the White House. When Jackie Kennedy first set foot in the White House as America’s first lady, she could not have dreamed that this would be where she and Jack would come closest to fulfilling her dream of a happy marriage. “I said to myself, ‘It will be such a goldfish bowl. With the Secret Service and everybody here,
Twenty-five years after accusing an innocent man of rape, Tawana Brawley is finally paying for her lies. Last week, 10 checks totaling $3,764.61 were delivered to ex-prosecutor Steven Pagones — the first payments Brawley has made since a court determined in 1998 that she defamed him with her vicious hoax. A Virginia court this year ordered the money garnisheed from six months of Brawley’s wages as a nurse there. She still owes Pagones $431,000 in damages. And she remains defiantly unapologetic. “It’s a long time coming,” said Pagones, 52, who to this day is more interested in extracting a confession from Brawley than cash.
BOSTON -- John W. Henry took a backward ballclub in a dilapidated park and transformed it into a two-time World Series champion that is one of baseball´s model franchises. As the owner of The Boston Globe, he will try to turn around a newspaper that - like many other major metro dailies - is shedding staff, subscribers and advertisers as it makes the transition into the Internet age. Henry agreed to buy the Globe along with the Worcester Telegram & Gazette and the Boston Metro for $70 million, a fraction of the $1.1 billion
New Jersey Governor Chris Christie holds a narrow lead among Republicans for the party’s 2016 presidential nomination, but even more GOP voters say he’s the candidate they least want to see nominated. A new Rasmussen Reports national telephone survey finds that Christie earns 21% support when Republican voters are asked whom they would vote for if the party’s primary in their state were held today. Florida Senator Marco Rubio runs a close second with 18% of the GOP vote, followed by former Florida Governor Jeb Bush at 16% and Kentucky Senator Rand Paul with 15% of the vote.
Barack Obama delivered one gaffe after another in his August 6 interview with Jay Leno, but the networks that usually mock every mistake or slip of the tongue made by Republicans ignored the President´s verbal mishaps. ABC´s Good Morning America, CBS´s This Morning and NBC´s Today show, on Wednesday morning, all bypassed the chance to criticize Obama for: downplaying the threat of terrorism; falsely claiming Vladimir Putin once ran the KGB; placing the Atlantic coast cities of Savannah, Charleston and Jacksonville on the Gulf of Mexico; confusing the Winter Olympics with the Summer Olympics. First up, on the
WASHINGTON — U.S. officials insisted Tuesday that extraordinary security measures for nearly two dozen diplomatic posts were to thwart an “immediate, specific threat,” a claim questioned by counterterrorism experts, who note that the alert covers an incongruous set of nations from the Middle East to an island off the southern coast of Africa. Analysts don’t dispute the Obama administration’s narrative that it’s gleaned intelligence on a plot involving al Qaida’s most active affiliate, the Yemen-based Arabian Peninsula branch. That would explain why most U.S. posts in the Persian Gulf are on lockdown, including the U.
Critics of the president are convinced that Barack Obama will do lasting damage to the U.S. I doubt it. Obama came to power in the third year of large Democratic congressional majorities. In his first referendum, he lost the House and he may soon lose the Senate; in other words, there followed a somewhat normal reaction against a majority party. Obama’s popularity rating is well below 50%, despite an obsequious media and a brilliantly negative billion-dollar campaign that long ago turned Mitt Romney into a veritable elevator-using, equestrian-marrying, canine-hating monster. In the second term, there is little
Former Republican presidential nominee Mitt Romney jumped into the debate over the GOP’s future Tuesday night, warning congressional Republicans against forcing a government shutdown in their quest to stop President Barack Obama’s signature health care law. Romney addressed more than 200 donors on the shores of Lake Winnipesaukee at a fundraiser for the New Hampshire Republican Party, staged just four miles from the vacation home where he has spent much of the summer with his family. The event was closed to the media, but his office released his prepared remarks.
Ending a war is a good thing. Killing civilians a bad thing. Deliberately targeting civilians is murder, and is never morally licit, even in pursuit of a good thing such as ending a war. The tens of thousands of Japanese non-combatants we killed 68 years ago this week with two nuclear bombs were not “collateral damage” of military strikes. They were the intended targets. We hoped that mass murder would bring the Japanese emperor to surrender. It worked, and American and Japanese soldiers’ lives were probably saved by it —
Last month we learned that Megyn Kelly was leaving her daytime anchor gig to take over a Fox News primetime slot. According to an “exclusive” Drudge Report flash this afternoon, that time slot will be 9 p.m. ET. “Superstar newswoman Megyn Kelly has landed the 9 PM slot, top sources reveal,” the Drudge Report wrote. “The shock announcement is set for later this month.” Fox’s 9 p.m. hour is currently helmed by Sean Hannity, leading to speculation over whether he could be out of a primetime gig. There are many possible outcomes from this lineup change,
The U.S. State Department issued a global alert about the terrorist threat allegedly posed by Al-Qaeda in Yemen. The USA announced the closure of its missions in the Middle East and Africa, and their example was followed by France, Britain, and Germany. However, this was only an attempt to justify the activities of the National Security Agency.Last Saturday, right after alerting of the terror threat civilians and BOLO complex ("be on the lookout") that includes law enforcement and federal officials, President Barack Obama went to play golf, and then celebrated his birthday at the presidential retreat at Camp David.
Over the last week, there has been a lot of buzz about a supposed CIA angle to the Benghazi story. Specifically, it has been alleged that a substantial number of CIA employees were on the ground in Benghazi, carrying out a mission that involved rounding up Libyan weapons and transferring them to rebels in Syria. Further, it has been reported that the CIA has leaned on its employees not to cooperate with Congressional investigations or the media, and it has been suggested that the CIA’s role in Benghazi may be related to the al Qaeda
In a rare diplomatic snub, President Obama is canceling plans to meet with Russian President Vladimir Putin in Moscow next month. The decision reflects both U.S. anger over Russia´s harboring of National Security Agency leaker Edward Snowden and growing frustration within the Obama administration over what it sees as Moscow´s stubbornness on other key issues, including missile defense and human rights. Obama will still attend the Group of 20 economic summit in St. Petersburg, Russia, but a top White House official said the president had no plans to hold one-on-one talks with Putin while there.
In a move some claim is tantamount to social engineering, the Department of Housing and Urban Development is imposing a new rule that would allow the feds to track diversity in America’s neighborhoods and then push policies to change those it deems discriminatory. The policy is called, "Affirmatively Furthering Fair Housing." It will require HUD to gather data on segregation and discrimination in every single neighborhood and try to remedy it. HUD Secretary Shaun Donovan unveiled the federal rule at the NAACP convention in July. "Unfortunately, in too many of our hardest hit communities, no matter how hard
Retired 68-year-old US Army general and former NATO Supreme Allied Commander Wesley K. Clark has won yet another esteemed decoration — he is dating 30-year-old Shauna Mei, the founder of online retailer AHAlife.com. Clark, who was married to Gertrude Kingston Clark for 45 years before filing for divorce last year, is spending time with the young New York-based entrepreneur, who graduated from MIT and worked at Goldman Sachs as an investment banker before launching her luxury e-commerce site. Clark and Mei were spotted together recently in the Hamptons,