Cook Medical Scraps Expansion Plans Over ObamaCare Medical Tax

The Democrats who wrote, passed, and support the “American Care Act” probably thought that companies would just roll over and willingly pay a higher tax rate for their medical devices. Alas, the Real World has intruded on the Dem fantasies of collecting more tax money to spread around to their campaign contributors and voters

(Fox News) 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.

Surprise! Who could imagine that increasing taxes could cause a company to change its behavior rather than rolling over in docility? Liberals might say that a 2.3% tax on medical devices isn’t a big deal, but when that increases costs on a company by $20 million dollars, which is real money when you get outside the Washington, D.C. bubble, things have to be changed. And that cost also tends to be passed on to the consumer, who might think twice about making the purchase, and go with that product that was made in another country and is not subject to the tax.

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.

Wouldn’t it make more sense to decrease taxes, meaning people would purchase that product in greater numbers, a product made in America by (hopefully) American workers, so that the company can make more money, which means more tax money is paid to the state and local governments through sales tax and, because earnings are greater, more income tax to the state and federal governments? In Liberal World, they’d just prefer the money goes straight to the federal coffers, and damned the consequences.

And let’s not forget that with more sales, there would be a need for more production, so the companies would expand, people would work. Oh, and it means people would pay less for the medical devices they need, devices that may just be better quality than those imported.

Crossed at Right Wing News and Stop The ACLU.

Save $10 on purchases of $49.99 & up on our Fruit Bouquets at 1800flowers.com. Promo Code: FRUIT49
If you liked my post, feel free to subscribe to my rss feeds.

Both comments and trackbacks are currently closed

8 Responses to “Cook Medical Scraps Expansion Plans Over ObamaCare Medical Tax”

  1. […] the Left driven by greed and a hatred of Capitalism kills business with taxes and regulations. Via William Teach The Democrats who wrote, passed, and support the “American Care Act” probably thought that […]

  2. […] liberals, with the Obama White House right up front. William Teach says it better than could I. (Pirate’s Cove)Wouldn’t it make more sense to decrease taxes, meaning people would purchase that product in […]

  3. john says:

    Teach 20 million IS NOT “real money” when like Cook Medical your yearly revenue is 1,500 million. the tax increase would barely be noticeable.

    • LD Jackson says:

      So, just because Cook Medical has yearly revenue of $2 Billion, they aren’t supposed to care if they pay more taxes? Just because the tax increase would barely be noticeable, they should just pay it and move on? How many times does any company do that before they go out of business? They have every right to cap their expenses at a certain level. If the Obamacare tax causes them to reach that level, then who’s fault is that? Certainly not Cook Medical.

  4. If it’s not “real money”, John, then why do you Democrats want to nail “rich” people making jist $200k individual/$250k joint filing?

  5. […] the Left driven by greed and a hatred of Capitalism kills business with taxes and regulations. Via William Teach The Democrats who wrote, passed, and support the “American Care Act” probably thought that […]

  6. Gumball_Brains says:

    And, the Socialist’s plans are working. They have an ignorant populace like silly john who is incapable of independent thought and actually believe that the government and corporations JUST have money. That the government and corporations payroll and budgets are just something they do for the sake of the people, the monies coming from the owners – not customers.

    We’ve allowed, willingly and through inaction, the Socialists and those in the Democrat Socialists Media Party to control the message, the narrative, and the media for far too long.

    Too many people are sheep and willingly disconnect themselves from the fate of the country believing that if they just sleep and go to work, everything will stay the same or turn out right.

    Ignorance and apathy is the worst disease of any nation.

  7. Monday morning links…

    The hidden world of sharks Wendell Berry update 5 Reasons We Can’t Have It All – You can’t always get what you want, but you get what you need.  The Absurdity Of Sandy Weill Republicans Who Oppose Obamacare Are Like Stalin… Want People…

Bad Behavior has blocked 7172 access attempts in the last 7 days.