Wednesday, September 12, 2012

Richard Carmona's Job-Killing Healthcare Law Is Hurting Medical Device Companies In Arizona.

Carmona’s Medical Device Tax Is Negatively Affecting Companies Throughout Arizona.

PHOENIX — When Democrat Richard Carmona voiced his support for President Obama’s job-killing healthcare law, it hit medical device companies in Arizona and throughout the country with a job-killing 2.3 percent tax on medical device companies.

According to the CEO of Boston Scientific this tax could eliminate 45,000 jobs within the medical device community nationally:
"Boston Scientific’s chief executive yesterday ripped a tax on medical devices slated for 2013 and anticipated major layoffs at the Natick company if the levy — part of President Obama’s health-care overhaul — isn’t repealed."It’s an outrage. It is soaking one of the last remaining industries in this country that pays (higher-than-average wages),” CEO Ray Elliott said at an industry conference in New York."We’ve been very clear: We will have a lot less employees, if somebody tags us with a hundred million dollars worth of taxes.” Elliott’s comments came a week after trade group AdvaMed released a study finding that the 2.3 percent federal excise tax would lead to more than 45,000 job losses nationwide...” (Greg Turner, Boston Scientific CEO: Medical tax will mean job cuts, Boston Herald, 09/15/11)

Additionally, Cardinal Health (which has a significant medical-business presence in Arizona) claims that this job-killing tax could force their company to restructure.

The tax would affect Dublin-based Cardinal Health’s $1 billion medical-kit business, said Michael Lynch, executive vice president. Cardinal’s earnings as a percentage of sales are in the low single digits, so the excise tax could cause the company to reconsider competing in certain business segments subject to the tax, he said. Cardinal Health employs about 4,400 people in Ohio. (Ben Sutherly, Medical-device makers fight tax, Columbus Dispatch, 05/15/12)
"Across our country, Richard Carmona’s job-killing medical device tax will be not just killing jobs but also stunting important new medical innovation,” said Arizona Republican Party spokesman Tim Sifert."With unemployment above 8 percent, the last thing we need is Carmona rubberstamping President Obama’s failed agenda into law.”

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