Wednesday, January 2, 2013

Welcome to Obamacare: Yet, Another Tax That Has Been Heaped on You Effective Jan. 1, 2013


For the record:

Section 4191 of the Internal Revenue Code now imposes an excise tax on the sale of certain medical devices.

The tax applies to sales of taxable medical devices after Dec. 31, 2012.

The tax is 2.3 percent of the sale price of the taxable medical device. See Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information on the determination of sale price

(ht Travis Holte)

26 comments:

  1. What "medical device" did this poor guy buy at Cabella's?

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  2. I didn't know Cabela's sold medical items.

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  3. Although I know how to read regulations, I'm too lazy to read them. This says that the tax is only on devices used by medical professionals on humans (and presumably not for cats and hamsters) and has a “retail exemption” excluding from the definition “any device of a type that is generally purchased by the general public at retail for individual use.” The rule considers items falling into this category as those medical devices “regularly available for purchase and use by individual consumers who are not medical professionals, and if the design of the device demonstrates that it is not primarily intended for use in a medical institution or office or by a medical professional.”

    http://www.lexology.com/library/detail.aspx?g=3717cdf7-20d6-4e99-af3e-d088367722a3

    Since only medical professionals have to pay the tax, I guess that means it's free lunch for the rest of us, right?

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  4. Central planners distributing resources as they see fit to best serve their public, simply a thing of beauty.

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  5. As a medical device manufacturer, whose business is already on the ropes thanks to massively increased regulatory overhead and a weak economy, all I can say is: "Thanks a lot!".
    When do we wake up from this bad dream?

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  6. If only he'd joined Cabela's Club! He'd only be down 23 cents!

    Seriously can anyone verify this as being legit?

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    1. I don't think it's the real deal

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    2. Billmenot
      This medical excise tax on guns and fishing rods fairy tale has gone viral. But only the Tea Baggers believe it
      The rest of us have more sense.

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  7. It seems to be valid and will also be paid at the consumer level: http://www.snopes.com/politics/taxes/medicaldevice.asp

    We'll see...

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    Replies
    1. http://www.inquisitr.com/465154/obamacare-medical-device-excise-tax-causes-small-business-confusion/

      According to this article, some businesses might be playing it safe and there might be confusion which is leading to some products being taxed that shouldn't be. Either way, unintended consequences are a bitch.

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    2. It goes with the 3.4% sales tax to home owners when/ if they sell to go into obamabinladdencare's pool of collective money to help pay for his universal healthscam. ¿¿¿¿¿¿
      if you live in a state that observes this forced unity of health care and dont have some form of insurance you will be fined until you pay some Co. for insurance. It seems peeople are dismissing this as proposterous and impossible?

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  8. Actually if you get to the end of the post they say it may have been due to a glitch in the cahs registers. The items there certainly don't seem like they could be construed as medical devices even under the broadest definitions.

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    Replies
    1. They sell first aid kits for hunters and campers. I heard medical device covers all kinds of stuff including finger splints and tongue depressors.

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  9. Actually a voluntary tax is the only kind authorized by the constitution. He's worried about the five dollars tax on a one time purchase. How about the hundreds of thousands of dollars that the government will steal from your paycheck through the unconstitutional income tax...

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    1. We allneed to spread the word about this very important fact. income tax is such a fraud and totally illegal.
      http://www.mind-trek.com/practicl/tl16h.htm

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  10. Clothing is considered a medical device under the new law

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  11. A First Aid kit qualifies as a Medical Device. I wouldn't be surprised if cough medication qualifies.

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  12. Are earplugs considered a medical device? They are sold at Cabellas.

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  13. At one point hearing aids were in this category and apparently enough of the deaf folks let congress people know how absurd the tax would be. I am profoundly deaf and my hearing aids cost $6,000 a pair and theoretically only last 4.5 years. I, like many others, do everything I can to stretch out that time frame and my current aids are six years old and not very good.

    Soon I will get my last pair because my husband is retiring and we won't have even the minimal coverage we have now. So I will end up joining the way too many older folks who just cannot hear and have great difficulty functioning in this society.

    The thought of taxing hearing aids or any similar items that are so obviously strictly medical needs was and is obscene. Unfortunately many other users of similar products have not been exempted from this really nasty approach to raising more money to be wasted way too often.

    Much of the thinking behind this new health care scheme is aimed at withdrawing support for the disabled and folks who retire and it's a painful to read set of regulations that have been put forth by people who one would think would be kinder. I worked most of my adult life and paid the max into Social Security all of those years and now I realize I soon will be on Comfort Care which will exclude me from almost every expensive test, never mind surgery.

    And the costs will skyrocket but not so much for better health care but to pay the stacks and stacks of government employees who now have been inserted possibly unnecessarily into the Administration of health care.

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  14. Every time that I see an Obama sticker on a car, I think "what a dumb-ass!"

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  15. "Every time that I see an Obama sticker on a car, I think "what a dumb-ass!"

    You sir/mam, just invented the best bumper sticker of the year, seriously, go for it!

    I am currently using your quote as my new email signature too!

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  16. Our government has a lot to answer for. Between this "death star" (Obamacare) and them trying to take away our right to bear arms, they're doing their damnedst to kill us off. When I hear my kids and idiots on TV arguing that guns should be outlawed I not only see red, but I have chills in thinking about what will happen to us within the next few years. I am disabled and just had spinal surgery last year and need at least one more surgery on my spine and have already been told a few years ago that I need knee replacement surgery and I have an appointment for a consultation for both shoulders (my left has large bone spurs and causes me excruciating pain and I just found out also that the rotator cuff which was torn about 20 years ago has never healed!). I will most likely need surgery on both, but with the so-called Obamacare (I don't know much about the "care" Obama gives us unless he terms premeditated murder as "euthanasia" and kills all disabled people off..or even if you are just over a certain age)I don't know if my surgery will be approved as a medical necessity. When the idiots who voted him in office a second time find themselves in the same boat, it will be interesting to hear what they have to say about their so-called "savior" then! His election reminds me of the story of Pandora. If any of you remember the story, she opened a trunk which her husband had told her to never open and released all the evils into the world to torture all humans. The last thing released was "hope" which was not supposed to be considered as an evil; however, when Obama ran on his "hope" ticket originally, the story of Pandora certainly came to mind. His time in office just goes to show how "hope" can be changed to evil.

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  17. Cabela's is scamming people into thinking that it's Obamacare. Call Cabela's club and they will explain the medical device tax, (Not Obamacare)

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  18. Called the IRS, It is real. Has anyone even taken the time to see what else is in " Obamacare" But hey we are all rich and make enough to take care of everyone who doesn't wan't to work right...

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  19. Stethoscope has become so much popular as a medical device that you can even find it in the toy sets.

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  20. Hello, I appreciate your writing. One of the mistakes Obamacare supporters make when defending the law--every single one of them--is confusing health care coverage (which is given by insurance companies) with actual, applied care (which is given by flesh-and-blood doctors and nurses). thanks~ Steven at majakel medical

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