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Author Ed Conard on the impact of the medical-device tax under the president’s health-care law.
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Lines for you on Obama -- number -- the chief executive at Aetna.
Says health insurance premiums for some businesses and individuals make double when Obama -- arrives and item two.
Some CEOs awarding of layoffs when that new medical device tax -- on January the first and -- the company now is economic.
These people to all of unintended consequences he -- looked at Bain -- Mitt Romney -- welcome back.
Thank you for having me look this medical device tax to point 3%.
That's not a heavy duty tax it arrives in January the first.
These people are talking about layoffs.
I think that's a little bit of a -- -- -- you well I think I would agree with you the only thing I would keep in mind is company or maybe 10% return on sale so two and a half percent tax -- they can't pass that through his point 5% reduction in a profit settle have a big impact on the market value of their companies.
The going to be very very cautious because I think -- be reluctant to pass.
The price increases through he'll do that slowly over time I think but in the short run the probably gonna suffer squeeze and I'm not surprised to hear you say that you -- capitalists -- -- If you go to new tax you -- stuck it right to the consumer Iran off the -- now would you well the only problem is that the competitors don't do it and you do do what you raise the prices that you could lose market share and it's very difficult to get that share back seat -- -- move -- slowly when you when you raise prices and I can understand this I mean if you can't pass it along.
You can understand the sudden pull back in your staffing levels -- and that's understandable -- not like him why wouldn't say would lay the -- because rehiring staff and retraining staff would be very very difficult but I would certainly be moving very cautiously by thought it was intended to 25% reduction.
Profits and you're right I just think that this this idea that prices for medical devices grannies hit -- skyrocket.
Come January that.
I'm not buying in that it seems overblown I agree with that okay.
That's move on to Barack Obama the president could hinted at this that stick out facial expression.
I'm very disappointed.
I don't think he's changed one bit that has been absolutely no correction of any kind in his policy -- -- you.
I I would agree with you I think he has a negotiating strategy which is to push off.
The negotiation on the cost of the tax increases until after.
He gets an increase in the taxes on people earning over 250000 -- I think.
This is negotiating strategy before the election -- is negotiating strategy today.
He's looking for two bites of the apple did -- you budge on.
250000.
Dollars and law you pay more taxes at higher tax rate you don't think -- budgets I don't I don't see why would budge because if you let it expire.
Then what the Republicans aren't gonna reduce middle class taxes if the Democrats put that up I think they have to if they don't.
-- I think they're gonna be blamed for having -- over the fiscal cliff they could lose the house as a result and I think the president needs enormous tax increases.
On this spending so I think he actually.
Love to go off the -- blaming on the Republican -- cents a -- -- -- -- -- calls it blood on the Republican that you actually think he wants to go over while nobody wants it over the clip but to two thirds of the voters say that they would blame Republicans we don't reach an agreement here so I think the Republicans are under enormous pressure.
And I think the president's negotiating strategies to get a bite of the apple get an increase in taxes and then when you go back and have the real negotiation he's gonna look for second bite.
I was determined to stay away from fiscal cliff this -- back home -- that I before Christmas but I'm not gonna we gonna discuss it but I think is there a -- -- via.
That would be to know that there are but I thought -- try and add on try and suppose there was a deal OK last minute New Year's -- there's a deal.
That could be applause for the economy could -- I mean couldn't that give a shot in the arm to small business and business generally which -- -- has.
Maybe we know what's coming now would take the uncertainty off the table is that.
May DSL -- Well I think they're probably would vis a little bit of benefit from -- I think the uncertainty massive very ugly truth which is we have a one point one trillion dollar deficit and we need about 900 billion dollars that it may be run -- hundred billion dollars a year.
And not have debt grows a percent of GDP so anybody -- is looking forward in the future recognizes.
There's enormous tax increases and cost reduction coming even if we don't implement in January.
It's still coming down the road and it's coming very quickly -- negative on the economy generally for 2013.
You know highlight like to be an optimistic guy but I think that what looms in front of us here to support a 30% increase in government spending which is -- over the last four years is set is very expensive for the economy.
Do you have any opinion on -- Washington post's opinion.
That twenty women in the senate and record number is eight plus for more civility.
-- compromise.
I think women are more civil and more willing to compromise self.
So maybe but I think when you get into those positions hero politician first and foremost -- -- you are man or woman who -- -- Margaret Thatcher.
Yes court that she was in a mood to compromise and financier -- -- -- one tough negotiator wasn't she just what a lady at --
