Taxing Medical Equipment Manufacturers is Foolish
A particularly abhorrent feature of the Healthcare Reform Bill is a new tax on the manufacturers of medical equipment. This tax is foolish and counter-productive at several levels. Consider the following:
1. The taxes on medical equipment manufacturing will ultimately be passed on to the average American, who is making considerably less than the much-touted $250,000 per year. Since medical equipment is ESSENTIAL, the taxes will just be passed on to purchasers in the form of higher prices.
Thus, taxing medical equipment manufacturers DIRECTLY CAUSES additional healthcare inflation, which Obama is supposedly opposed to.
2. Taxing medical equipment will ultimately decrease its' availability. This is because the tax will make equipment more expensive and less affordable, therefore reducing its' supply.
People who have successfully passed Business 101 or Economics 101 know that prices are primarily determined by the Demand Curve, or the Law of Supply and Demand. Unfortunately, by taxing medical equipment manufacturers, you cause the price of medical equipment to INCREASE, which will DECREASE it's general supply. That immediately causes REAL PRICE INCREASES in medical care.
3. The Manufacturing Sector in the USA is STAGGERING. It is trying to stay alive after suffering the consequences of the Democrats passing NAFTA, which virtually destroyed American industry.
Now the Democrats are back, kicking manufacturing in the head once again. Medical equipment manufacturing is one of the few areas where America still has some prominence, but rather than HELPING this industry, by passing economic stimuluses, the Democrats are shaking it down for more money!
Why does Obama give BILLIONS of dollars to worthless incompetents at AIG and Wall Street, but then STOMPS on one of the precious few industries that Americans still do well?
4. The medical manufacturing sector is one of the few areas where America could EXPORT products, doing something to repair our insane imbalance of trade. But rather than providing economic stimuluses to medical technology manufacturers, the Democrats CLOBBER them with more obnoxious taxes!
5. Ultimately, a good way to reduce medical costs is to INCREASE the supply side of the Demand Curve. This should be done by applying economic stimulus money to the building of new free clinics and new free hospitals. One of the more expensive parts of that is to provide them with equipment.
The LAST thing that you want to do is tax medical equipment manufacturers. This is totally counter-productive for all of the reasons cited above.
I should also add that I am a lifelong Democrat, but I will probably vote Republican in 2010. The behavior of the Congressional Democrats in the past few weeks is beyond reprehensible. I do not consider them completent to be running the Congress.
Draft 1: 3/25/10
1. The taxes on medical equipment manufacturing will ultimately be passed on to the average American, who is making considerably less than the much-touted $250,000 per year. Since medical equipment is ESSENTIAL, the taxes will just be passed on to purchasers in the form of higher prices.
Thus, taxing medical equipment manufacturers DIRECTLY CAUSES additional healthcare inflation, which Obama is supposedly opposed to.
2. Taxing medical equipment will ultimately decrease its' availability. This is because the tax will make equipment more expensive and less affordable, therefore reducing its' supply.
People who have successfully passed Business 101 or Economics 101 know that prices are primarily determined by the Demand Curve, or the Law of Supply and Demand. Unfortunately, by taxing medical equipment manufacturers, you cause the price of medical equipment to INCREASE, which will DECREASE it's general supply. That immediately causes REAL PRICE INCREASES in medical care.
3. The Manufacturing Sector in the USA is STAGGERING. It is trying to stay alive after suffering the consequences of the Democrats passing NAFTA, which virtually destroyed American industry.
Now the Democrats are back, kicking manufacturing in the head once again. Medical equipment manufacturing is one of the few areas where America still has some prominence, but rather than HELPING this industry, by passing economic stimuluses, the Democrats are shaking it down for more money!
Why does Obama give BILLIONS of dollars to worthless incompetents at AIG and Wall Street, but then STOMPS on one of the precious few industries that Americans still do well?
4. The medical manufacturing sector is one of the few areas where America could EXPORT products, doing something to repair our insane imbalance of trade. But rather than providing economic stimuluses to medical technology manufacturers, the Democrats CLOBBER them with more obnoxious taxes!
5. Ultimately, a good way to reduce medical costs is to INCREASE the supply side of the Demand Curve. This should be done by applying economic stimulus money to the building of new free clinics and new free hospitals. One of the more expensive parts of that is to provide them with equipment.
The LAST thing that you want to do is tax medical equipment manufacturers. This is totally counter-productive for all of the reasons cited above.
I should also add that I am a lifelong Democrat, but I will probably vote Republican in 2010. The behavior of the Congressional Democrats in the past few weeks is beyond reprehensible. I do not consider them completent to be running the Congress.
Draft 1: 3/25/10
posted by Jack W. Orf | 5:53 AM
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