ObamaCare to Tax Job Creators “Out of Existence,” Send Jobs Overseas
The House will vote as early as next week to repeal ObamaCare’s medical device tax, another element of the president’s health care law that makes it harder for small businesses to hire new workers.
The medical device tax embodies President Obama’s hostility toward job creators. Rep. Erik Paulsen (R-MN) – author of the device tax repeal bill (H.R. 436) – and Rep. Jim Gerlach (R-PA) wrote last fall that the tax “will eliminate more than 40,000 well-paying jobs” and force job creators “to close factories in this country and look overseas” for better opportunities.
“Companies at make-or-break margins could be taxed out of existence,” argues the Wall Street Journal. “[E]specially in an intensely competitive industry where four of five businesses are start-ups or midsized.” Unless repealed, the tax would mean “less innovation, fewer jobs, higher health costs.”
Unfortunately, this isn’t a hypothetical discussion. George Will recently explained how the threat of this new ObamaCare tax is already hurting job creators and sending American jobs overseas:
Cook Medical [the world’s largest family-owned medical devices company] is no longer planning to open a U.S. factory a year. Boston Scientific, planning for a more than $100 million charge against earnings in 2013, recently built a $35 million research and development facility in Ireland and is building a $150 million factory in China. (Capital goes where it is welcome and stays where it is well-treated.) Stryker Corp., based in Michigan, blames the tax for 1,000 layoffs. Zimmer, based in Indiana, is laying off 450 and taking a $50 million charge against earnings. Medtronic expects an annual charge against earnings of $175 million. Covidien, now based in Ireland, has cited the tax in explaining 200 layoffs and a decision to move some production to Costa Rica and Mexico.”
POLITICO Pulse says Rep. Paulsen’s device tax repeal bill is another part of the Republican plan “to promote jobs this summer.” President Obama and Senate Democrats, meanwhile, are picking fake fights and spending time “making a political statement” — instead of taking up the nearly 30 House-passed jobs bills that would help build a stronger economy for all Americans.
As Speaker John Boehner recently said, Republicans “voted to fully repeal the president’s health care law as one of our first acts as a new House majority, and our plan remains to repeal the law in its entirety.” Click here for a look at Republican efforts to repeal, defund, and dismantle ObamaCare, and visit jobs.GOP.gov for more information on the Republican Plan for America’s Job Creators.