Obamacare’s most unfair tax
UT Editorial Board - Among the many flaws in the federal Affordable Care Act, better known as Obamacare, this is among the worst: the medical device tax that unfairly penalizes companies such as the 240 medical device companies in the San Diego region that employ thousands of people in good-paying jobs.
This tax is an excise tax, which is usually imposed by the government on products it wants to discourage, such as alcohol and cigarettes. In the case of the medical device tax, it is intended simply as a money generator to help finance Obamacare.
But its impact has been to discourage job creation and innovation. This damage will only increase with time. California, with 75,000 jobs in the industry, can expect to get hit the hardest, and San Diego County will be among the worst hit in California.
Legislation to repeal the medical device tax is virtually assured in the House. The repeal bill has 275 co-sponsors, including all members of the San Diego County congressional delegation. Rep. Scott Peters, D-San Diego, has been a particularly strong supporter of repeal. Prospects in the Senate are less certain, but it is likely to pass there, too, if it can come to a vote.
And then, unfortunately, President Obama will veto it. It’s Obamacare.