“It’s about jobs,” said then-House Speaker Nancy Pelosi (D-Calif.) in February 2010. “In its life [healthcare reform] will create 4 million jobs, 400,000 jobs almost immediately.” Tell that to the roughly 1,000 employees of Stryker Corporation who will be losing their jobs as a direct result of a medical-device fee included in ObamaCare.
According to a Reuters report, on November 10 the Kalamazoo, Michigan-based maker of replacement hips and surgical devices announced that it would be “implement[ing] focused workforce reductions of approximately 5% of its global workforce and other restructuring activities that are anticipated to reduce annual pre-tax operating costs by over $100 million beginning in 2013.” Stryker specifically stated that these actions are being undertaken “to provide efficiencies and realign resources in advance of the new Medical Device Excise Tax scheduled to begin in 2013” and otherwise to strengthen its position in a difficult economic climate.
The Medical Device Excise Tax, which was estimated to generate $20 billion in revenue for the federal government, is a 2.3-percent tax on the total revenues of a company manufacturing medical devices. Since the tax “will be levied … regardless of whether a company generates a profit,” DailyMarkets.com’s Mark Perry observes, “many companies will owe more in taxes than they generate from their operations. The result will be devastating to innovation, patient care and job creation.”
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