The Washington Post published something astonishing (for them) yesterday: Taxing jobs out of existence. Impressive, don't you think? Even though it is in the opinion section, George Will puts in plenty of hard data concerning the economic effects of Obamacare-funding taxes.
In 2010, however, Congress, ravenous for revenue to fund Obamacare, included in the legislation a 2.3 percent tax on gross revenue — which generally amounts to about a 15 percent tax on most manufacturers’ profits — from U.S. sales of medical devices beginning in 2013. This will be piled on top of the 35 percent federal corporate tax, and state and local taxes. The 2.3 percent tax will be a $20 billion blow to an industry that employs more than 400,000, and $20 billion is almost double the industry’s annual investment in research and development.And the end result?
Cook Medical 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.He goes on about which Congressman are now in favor of repealing the tax, but you could read that yourself. My point is simply that taxation and spending do not and can not bring growth! For all those railing against corporate profits (what do they want - bankrupt companies taxed to death and more layoffs!?) and corporations moving jobs off-shore, you should look no further than your bloated, out-of-touch federal government.
PS. You may notice I refuse to be distracted away from the economy by the phony issues brought up by Obama and the Washington Post in regards to Romney's position on gays, and in reference to an 'alleged' incident that accuses Romney of being a bully in high school. To that, I answer with this. Breitbart has tons of this debunking posts up right now in answer to the nefarious, inaccurate article by the Washington Post.