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Well I go to the governor -- now is Stephen MacMillan he is the chairman and he's the Chief Executive Officer.
All of the medical technology company strikeout Stephen welcome to the program thank you and I did not paid for the ticket -- -- like to be reduced their idea what -- -- Right you have medical equipment -- one of the biggest in the world history you face a tax under Obama look at.
You'll have medical devices you build a going to be tax was it 2.3 percent exactly 2013.
Yes if you implications of what -- -- because of that tax it's it's a very concerning tax particular when you take a macro standpoint and think about we're trying to create jobs in America and get this economy growing again.
And the medical device industry.
Has actually been one of the great industries -- creating manufacturing jobs in this country.
We actually have manufacturing facilities in seven or eight states all right -- are producing now you get hit with a tax.
You've got to add -- tax to the price the value of what -- putting out.
You keep manufacturing in America.
We will absorb another 150 million dollars of taxes -- will be paying to the government so you think about what we're talking about last night at the state of the union as we need to cut corporate tax rates.
Our industry is looking at a tax increase.
You can look at all the 150 million we will have to pay another 150 million dollars in taxes for our US sales because of that 2.3 percent.
-- so what we have to do is figure out frankly we can't just necessarily pass it on.
But we can't just sit or shareholders.
You know tough luck.
We really are trying to figure that out it was causing us to rethink where we manufacture -- the top guy one of the biggest medical equipment makers in the world -- on have you made your views known to this administration forcefully.
We have communicated both as an industry has a company.
I think were encouraged by the recent election and what seems to only change what was -- was -- you go to the administration decided -- look come on come hunt.
I'm an American manufactured you hit me with a 150 million dollars worth of tax what -- the -- May I ask.
It's been not as well received as we would like do you bath -- -- -- wholesale repeal of Obama kept.
I think they started out with great principals and I think the pragmatic reality of wholesale repeal is not there but I go back if the original.
Outset broader coverage for all makes a lot of sense but things like tort reform that -- on the table.
That I think are vital to reducing health care costs because it's leading to so much defensive medicine.
So much extra cost in our health care system.
A lot of those great ideas fell by the wayside.
What I would hope is they go back and really start to seriously address that and the president last night did start to -- and put particularly medical tort reform.
Back on the table that both -- is an industry.
Losses company think would be very -- let's talk talk reform I am -- -- -- segment every single device that you put out onto the market you'll sued.
Because of it for what -- reason almost every single device that you put out that have a lawsuit attached to it -- right.
Dates and extreme but it's it's certainly a possibility we have to think about it as a possibility everything we do that you can you tell me how much it cost him.
How much of the current legal system cost you can you tell me about to be allowed to tell me that we don't break out our legal costs but I would tell you if you look at it relative to what we spend in the United States -- will spend outside the United States.
Easy hugely disproportionate share a -- -- -- most of -- Probably across the industry and ultimately would be for us is a company.
You know -- it's in the millions to tens of millions range.
I think the real disparity is outside the US forces inside and it's back to we've created a very litigious environment here.
And and I think the bigger issue as -- relates to health care costs is actually not us as a company.
I think -- -- as a society we are spending hundreds of billions of dollars a year that we don't need to spend.
In defensive medicine.
Are worried about being sued.
And so it's part of its us but really I think it's the Brothers Brooklyn case was a shareholder how much that I ballpark as to what -- liability litigation cost me you know in terms of my bottom line.
You know not a huge part for us if you look you know one of the reasons we've invested a ton and our quality systems.
Over time is to make sure that everything were putting out.
Is you know very good -- there as you see there are certainly high profile recalls in the industry.
We believe the more we invest in great quality systems.
We can avoid -- let me read those relations if you've got real meaningful school reform I mean they got the lawyers out of the medical business top to bottom if that happened.
You stock would go up ten.
-- -- But it was you know what probably not as -- I would say that's actually still a bigger win for the American consumer.
Than it actually is for us is a company can because they are now we're in general last management -- from Charles Payne.
The conundrum you've already had that you're here in America you wanna -- in America but taxes -- force you out so the economic realities that the rest of the world as long inning when you gotta be out there.
Can you can't somehow this is go to the White House to say listen you've got incentivize us to stay here for a couple reasons say.
-- over taxing us impeach our future customers are brought anyway.
I think the whole idea of going to -- corporate tax reform if we just get to a lower tax structure and by the way get rid of all the the surcharges that that the tax breaks and everything else I think we would all endorse that and the certainty.
Would be 103 you -- -- profits though it would.
Yeah I mean we got a trillion dollars sitting offshore gap I'm not personally I'm not a big fan of giving tax break.
A one off tax break for repatriating profits we did it.
-- for five years ago.
I'm not sure it gave the stimulus to the economy that we hoped no word just just like the government spending.
I think what we need is a sustainable tax rate that we can plan an example -- just gives the -- tax credit in December of last year.
Retro for the full year.
That's not great tax policy -- we couldn't plan for -- -- what we need is if we know that aren't tax credit is there.
-- put more jobs and but when it comes at the end of the year it's too late all right Stephen -- -- We don't do many CEO interviews on this program but you with the exception and your valuable guest thanks so much for joining us and we appreciate -- thank you very much for having so.
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