Obamacare rolls on and new taxes go into effect in 2013. The 2.3% tax on medical devices will impact the cost of health care, and raise the amount Medicare pays for certain devices.
The U.S. Internal Revenue Service on Wednesday released final rules for a new Obamacare tax on medical devices, products ranging from surgical sutures to knee replacement implants, that starts next year as part of President Barack Obama’s 2010 healthcare law.
The 2.3-percent tax must be paid, effective after December 31, by device-makers on their gross sales. The tax is expected to raise $29 billion in government revenues through 2022.
If the government wants to reduce Medicare expenses, why levy a tax that will increase the cost of items paid for by Medicare?
Many medical devices that are sold over-the-counter – such eyeglasses, contact lenses and hearing aids – are exempt from the tax, as are prosthetics
That’s the good news.
The tax applies mostly to devices used and implanted by medical professionals, including items as complex as pacemakers or as simple as tongue depressors.
The folks in Washington never figured out that taxes on corporations are merely passed through to customers. Corporations don’t really pay taxes. People do.