……Is that the Left driven by greed and a hatred of Capitalism kills business with taxes and regulations. Via William Teach
The Democrats who wrote, passed, and support the “American Care Act” probably thought that companies would just roll over and willingly pay a higher tax rate for their medical devices. Alas, the Real World has intruded on the Dem fantasies of collecting more tax money to spread around to their campaign contributors and voters
(Fox News) An Indiana-based medical equipment manufacturer says it’s scrapping plans to open five new plants in the coming years because of a looming tax tied to President Obama’s health care overhaul law.
Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years.
“This is the equivalent of about a plant a year that we’re not going to be able to build,” a company spokesman told FoxNews.com.
He said the original plan was to build factories in “hard-pressed” Midwestern communities, each employing up to 300 people. But those factories cost roughly the same amount as the projected cost of the new tax.
“In reality, we’re not looking at the U.S. to build factories anymore as long as this tax is in place. We can’t, to be competitive,” he said.
Surprise! Who could imagine that increasing taxes could cause a company to change its behavior rather than rolling over in docility? Liberals might say that a 2.3% tax on medical devices isn’t a big deal, but when that increases costs on a company by $20 million dollars, which is real money when you get outside the Washington, D.C. bubble, things have to be changed. And that cost also tends to be passed on to the consumer, who might think twice about making the purchase, and go with that product that was made in another country and is not subject to the tax.
But the Cook Medical spokesman said the impact is greater than just a 2.3 percent uptick in taxes. He said the impact on actual earnings is another 15 percent, and he projected the company’s total tax burden next year will rise to over 50 percent.
Go read the rest. Don’t you just love how that “spreading the wealth around” hurts, rather than helps working people. The jobs Cook Medical WOULD have created are gone, and of course Cook is not the only company being forced to cut back expansion plans. Just another example of how the Left promises to spread the wealth, but actually spreads the misery