Indiana company scraps plans for expansion over ObamaCare device tax

[keck553]

I see a lot of this going on locally with smaller business.

http://www.foxnews.com/politics/2012...re-device-tax/


An Indiana-based medical equipment manufacturer says it's scrapping plans to open five new plants in the coming years because of a looming tax tied to President Obama's health care overhaul law.
Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years.
"This is the equivalent of about a plant a year that we're not going to be able to build," a company spokesman told FoxNews.com.
He said the original plan was to build factories in "hard-pressed" Midwestern communities, each employing up to 300 people. But those factories cost roughly the same amount as the projected cost of the new tax.
"In reality, we're not looking at the U.S. to build factories anymore as long as this tax is in place. We can't, to be competitive," he said.
Company executive Pete Yonkman first revealed the scuttled plans in an interview with the Indianapolis Business Journal. The company later confirmed the decision to FoxNews.com.
The Affordable Care Act imposed a 2.3 percent tax on medical devices beginning in 2013. It is projected raise nearly $30 billion over the next decade.
But the Cook Medical spokesman said the impact is greater than just a 2.3 percent uptick in taxes. He said the impact on actual earnings is another 15 percent, and he projected the company's total tax burden next year will rise to over 50 percent.
Republicans and medical device makers have been railing against the tax all along, with the GOP-controlled House approving a bill last month to repeal it. The Senate, though, hasn't taken it up.
A recent study by the left-leaning Center on Budget and Policy Priorities, though, said the complaints by the industry are exaggerated.
"The tax will not cause manufacturers to shift production overseas. The tax applies equally to imported and domestically produced devices, and devices produced in the United States for export are tax-exempt," the study said. It also said repealing the tax would "undercut health reform" by requiring Congress to offset the repeal by potentially killing spending provisions in the law and by potentially encouraging similar repeals.
Cook Medical is part of a family of companies that produce medical devices for surgery, obstetrics, gynecology and other fields.

[aftertheflood]

And the cycle begins. Companies will offset the tax by either not expanding or by laying people off. This will increase the number of people that "require" government aid. Which will increase the overburden on the system. Which will cause idiot policy makers to raise taxes. Which companies will offset by not expanding and/or laying people off. Which will........

These "Obama" people didn't just fall out of the stupid tree and hit their head on the way - they were dragged through the orchard of stupid trees and hit their head on every trunk.

[keck553]

And the cycle begins. Companies will offset the tax by either not expanding or by laying people off. This will increase the number of people that "require" government aid. Which will increase the overburden on the system. Which will cause idiot policy makers to raise taxes. Which companies will offset by not expanding and/or laying people off. Which will........

These "Obama" people didn't just fall out of the stupid tree and hit their head on the way - they were dragged through the orchard of stupid trees and hit their head on every trunk.

Or they want eveyone working for the state......

[Diggindeeper]

I dunno...but I think maybe these people who passed this outrageous Obama Care TAX coulda been here in the time of Solomon!

Song of Solomon 6:11
I went down into the garden of nuts to see the fruits of the valley, and to see whether the vine flourished and the pomegranates budded.

[bdh]

Weak, bad or poor political decisions always affect the masses -- that's you and me. Unfortunately, the political system (I'm not referring to the US but to the world in general) is rigged (meaning broken) to the extent where it matters little whether you are a democrat, republican, nationalist, communist, socialist or economist .... you vote for the same corrupt global system that will continue to make bad choices. That's their goal. Call me a cynic if you like but the facts on the ground leave little room for any other interpretation.

[student of the Lamb]

I am aware that there are some that do not necessarily agree with the NWO conspiracy theory but Henry Kissenger who is a former employer of Obama and also a member of the Council on Foreign Relations is on record as having said that he believes that Obama could possibly be the first president of the NWO. The problem is that the onlt way that this starts to become a reality is when the complete world of capitalism collapses. That means that the United States must lead the way in the collapse. These people have been at this for over forty years working towards the next four years or a complete collapse soon. The situation is such that they must continue to drain the national finances as well as the people and the businesses. So far their plan is working well unless they lose the election and don't take alternative actions if it looks like they are going to lose.

[Free Indeed]

Song of Solomon 6:11
I went down into the garden of nuts to see the fruits of the valley, and to see whether the vine flourished and the pomegranates budded.

I just re-read this thread, and was thinking exactly the same thing!

[Fenris]

If you punish innovation, creativity, and hard work, people will cease to be innovative, creative, or hard-working. It's not rocket science.