From the National Center for Policy Analysis:
The effect of Obamacare on innovation within the health care sector is staggering. Scott Atlas, senior fellow at the Hoover Institution, explains how the law has begun to change research, development and innovation — activities which traditionally have taken place in the United States — thanks to the ACA’s $500 billion in new taxes, many of which fall on medical device and drug manufacturers. The result? Companies are moving overseas.
via Obamacare: Sending Research, Development and Innovation Overseas.
From an excellent post by John C. Goodman:
After John Templeton renounced his citizenship and moved to Nassau where there is no income tax, the federal government imposed penalties — to discourage other wealthy people from doing the same thing. That was because the government wants to tax them. But when a wealthy person expatriates, the distribution of income and wealth becomes more equal. Should we reverse course and encourage the John Templetons of this world to get out of town. If equality is a serious goal, we should at least relax the penalties.
Read more: In Defense of Inequality | John Goodman’s Health Policy Blog | NCPA.org.
At Forbes.com, Grace-Marie Turner summarizes the new taxes imposed by Obamacare:
- Medical Device Tax
- A new Surtax on Investment Income
- A new Medicare Tax
- The new Flexible Spending Account Tax
- ObamaCare also tightens the screws on Itemized Medical Deductions
Many more taxes are coming, including a “tax penalties” for individuals and businesses who don’t comply with ObamaCare’s mandate that they purchase government-approved health insurance. The Congressional Budget Office expects these penalties for non-compliance to bring in $160 billion in the first decade they are in effect.
ObamaCare’s $1 trillion in total tax increase hit everything from health insurers, drug companies, and tanning salons to Health Saving Accounts and – eventually – high-cost employer-based health insurance.
Read more: As 2013 Begins, Get Ready For An ObamaCare Tax Onslaught.
See also: “An Unhealthy Dose of Obamacare Taxes” at Reason.com.
Michael Cannon at Cato writes:
There have been several developments with respect to the Obama administration’s attempt to impose the Patient Protection and Affordable Care Act’s employer-mandate penalties and individual-mandate penalties where it has no authority to do so.
Read about it here: The Obama Administration’s Illegal Health Care Taxes: an Update | Cato @ Liberty.
At National Review, Cato’s Michael Tanner writes:
It has largely gone unnoticed amidst the hullabaloo surrounding the fiscal cliff, but regardless of what happens with the cliff negotiations, taxes are going up next year. The president may be calling for $1.6 trillion in tax hikes by 2022 in exchange for not driving the country over the cliff, but that does not count Obamacare, which will impose an additional $1 trillion in new or increased taxes over the next ten years, a big portion of which take effect in 2013. …
If one accounts for all of Obamacare’s costs, such as implementation costs that are “authorized but not appropriated,” and eliminates double counting of Medicare savings and other bookkeeping games, Obamacare will add roughly $1.5 trillion to the debt over the next ten years — coincidentally, almost as much as President Obama is seeking in non-Obamacare tax hikes.
More taxes, more debt: Welcome to the other cliff.
Read the whole article for details on the taxes: Regardless, You’ll Pay More – Michael Tanner – National Review Online.
At Forbes.com, Grace-Marie Turner writes:
ZOLL Medical Corporation is one of the medical device companies in the bull’s eye of ObamaCare. ZOLL President Jonathan Rennert explained that the new taxes the law imposes on his company’s revenue – revenue, not profits – will raise ZOLL’s tax rate to greater than 50%, which will in turn drastically curtail the company’s investment in research and development. “The medical device tax would have completely wiped out our profit if it were in effect over the last several years,” Rennert said. “Every one of the jobs in our company is now in the U.S. But we will have every incentive to move jobs offshore” when the tax takes effect in 2013. “The medical device tax will lead to less innovation, fewer jobs, and fewer lives saved.”
Timothy Ring, chairman and CEO of C.R. Bard, Inc., said the medical device tax is killing jobs, innovation, and America’s leadership in medical science. He cites as evidence: Investments in health technology firms are down 65% over the last five years.
via Innovation In The Health Care Sector Marches Forward – Forbes.