FORT WAYNE, Ind. (Indiana’s NewsCenter) – More debate over President Obama’s healthcare plan, but now it's regarding the sales tax on medical devices.
U.S. Senate Candidate, State Treasurer Richard Mourdock (R), and Representative Marlin Stutzman (R—3rd District), held a press conference at Greatbatch Medical Thursday afternoon concerning the medical device sales tax mandated by the Affordable Care Act or, Obamacare.
One of the provisions of Obamacare is a 2.3 percent tax on medical devices, similar to a sales tax. The tax is to help fund healthcare for the over 30 million people Obamacare impacts. However, Mourdock and Stutzman say the tax will kill jobs.
They say this will kill companies like Greatbatch Medical, an orthopedic instrument and part manufacturing company, and prevent others in the medical device industry from expanding, therefore prevent the creation of jobs. Supporters of the tax say that's an exaggeration, especially when the tax won't kick in until 2013.
“You have a great business here like Greatbatch though, that announced recently they're actually going to be bringing jobs in from Switzerland. The question is why are they bringing them in? It's because the business environment, the taxes, are too high in Switzerland. So it makes no sense at all for us to raise those taxes because we don't want to cause them to have to move the jobs somewhere yet again,” said Mourdock.
Both Mourdock and Stutzman claim the tax has already affected companies. At the press conference, they mentioned Cook Medical, Inc., an Indiana company based in Bloomington. They claim the company stopped its plans to build five new plants, including another one in Indiana, because of medical device tax. They say the company will have to pay between $20 and $30 million once the tax takes effect in January 2013.
However, a healthcare reform similar to Obamacare was enacted in Massachusetts in 2006, when Mitt Romney was Governor. According to a study done by the Urban Institute, the result of that reform shows no major job loss.
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