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FBN's Liz MacDonald on a letter sent to the Senate from executives at more than 800 companies demanding the medical-device tax be repealed.
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-- new tax on medical equipment maker's revenues not profits revenues now being called one of the most unfair taxes and health reform and it's got the medical community in an uproar demanding repeal Liz MacDonald is here with more.
Bottom line what's -- -- careless.
Hillary got -- 800 companies -- group sent a letter senator Harry Reid and Mitch McConnell and other senator saying look.
This tax which is going to raise thirty billion dollars now over ten years as opposed to paper Health Care Reform.
Well guess what it's going to hurt job creation it's gonna cost 43000.
Job losses.
And medical devices industry not tell you something it's not just is also if it is paid on -- not profits.
But you have to pay the tax -- company's have to pay the tax even if they don't have any profits they -- pay it so you know these companies operate thin margins and that could tip it into bankruptcy here's what the letter writers warned.
Also look at impact.
Other people adversely impact.
Patient care increase the cost of health care and adversely impact -- -- as well as jobs so the deal here is that the complaint is probably float -- so why tax -- device manufacturers as if they're taxing.
You know an excise tax on cigarettes or alcohol because this is what right it's an excise tax.
On sales so we already hear from Zimmer Holdings of medical device maker.
Laying off 450 people Stryker laying off a thousand people the other signatories of the letter is -- at the CS CR Bard GE healthcare.
But the eight but guys here's the deal the all in tax rate now that these guys face -- these -- the companies that extends.
Pacemakers devices for brain surgery prosthetics for returning soldiers the all in tax rate -- -- new study from cursing -- get this.
80%.
And so all in state local federal with this thing that I equipment makers face face of all in tax rate federal rate in the ballot but generally US industry that's one of the few major manufacturing hedges we have is medical equipment yet that's right so now we're hearing that -- -- -- outsourced to other countries right now.
And it could abolish that manufacturing.
Part of this to hear in the country.
Think that this is gonna do that of the industry overall because it looks at it seems like it what it would.
-- -- -- summit this stuff in the United States let's develop things are gonna go to Israel Israel has a very strong.
Medical technology industry they might actually you know.
Move ahead of the United States and innovation.
That's the point MER ID is already being outsource -- -- -- -- as saying look.
We are already pulling back on R&D hearing on -- -- and investing in plants and equipment here in the United States.
So naturally that would affect job growth here again 42000 job -- -- is a big number that 80% all in rate they now face is a big number ten a surtax on gear makers when drug makers emerged unscathed.
Those gear magazine to better lobbyists thanks for being weak McDonald -- -- story.
