ObamaTaxcare Tax hits........Veterinarians.

[jerryskids 6,961]

I believe the tax is derived from the purchase price of the machine, not revenue derived therefrom.

Hmm... I'm not a tax reporting expert so you may be right, although for what it's worth, purchase price = revenue. Perhaps a tax person like Bert or Wiff can help out -- would you expect medical device companies to mark up this 2.3% tax to maintain a reported profit margin?

[Patriotsfatboy1 1,433]

Hmm... I'm not a tax reporting expert so you may be right, although for what it's worth, purchase price = revenue. Perhaps a tax person like Bert or Wiff can help out -- would you expect medical device companies to mark up this 2.3% tax to maintain a reported profit margin?

 

I think that you are confusing a tax on margin and a tax on price of an item. I would expect that they would charge as much as they can sell it for and maximize profit. Given the margin that the devices get, I would have a hard time seeing them charging more than the 2.3% of the direct cost. Their margin dollars will be the same, but the margin % will be slightly less. For high margin items, this will be a drop in the bucket.

 

I don't think that the real issue is with the 2.3% tax. It is really that the cumulative impact of small tax and cost increases greatly impacts a company's ability to compete in a global marketplace.

[penultimatestraw 473]

From the article I read from Time magazine a few weeks ago, the profit margin on medical devices is ~70% or so. That's the reason they went after that specific industry with a tax.

Yet, the indignation of some will be directed at government if they raise their prices, as if their hands are tied to make obscene profits because they have a captive consumer.

[Recliner Pilot 61]

Yet, the indignation of some will be directed at government if they raise their prices, as if their hands are tied to make obscene profits because they have a captive consumer.

Not sure if I would take Nikki's word on Time's word on much of anything.

[penultimatestraw 473]

Not sure if I would take Nikki's word on Time's word on much of anything.

I've read similar info, including the time article to which she refers IIRC.

[Recliner Pilot 61]

I've read similar info, including the time article to which she refers IIRC.

I'm sure you have.

[penultimatestraw 473]

I'm sure you have.

I think it was that bitter pill article linked last week - unfortunately, the link no longer accesses the entire article. My link