may as well tax the air we breathe also liberal socialists won't be happy until we're taxed into the grave
On Sep 29, 7:26 am, Travis <[email protected]> wrote: > And, in keeping with my prediction ... just wait ... > the Clean Air Tax. > > I still believe it is coming. > > ======================================= > > http://news.yahoo.com/s/ap/20090922/ap_on_go_co/us_health_care_everyd... > s > > Condoms, contact lenses shielded from tax > > Tue Sep 22, 6:00 pm ET > > WASHINGTON - They were calling it the tax on Q-tips. > > Amid Republican ridicule, a Democratic chairman backed down Tuesday and > exempted consumer items of $100 or less - from condoms to contact lenses > - from a proposed tax on medical device manufacturers. > > It would help pay for health care coverage for the uninsured in > comprehensive legislation. > > But Finance Committee Chairman Max Baucus, D-Mont., left intact a $4 > billion-a-year levy on the medical devices industry - keeping the > controversy alive. The industry makes some 80,000 different products > from heart valves to imaging machines to tongue depressors. The > Congressional Budget Office said Tuesday such industry fees could > eventually raise insurance premiums by roughly 1 percent. > > Baucus' last-minute switch came as his committee considers sweeping > legislation to remake the health care system. It means that contact lens > solution, scented maxi-pads and home pregnancy tests - among many other > items - will not be taxed. (It's not clear if Q-tips were ever on his list.) > > But more expensive consumer medical goods, from power wheelchairs to > insulin pumps and hearing aids, would still get hit. > > The difference is those are paid mostly through insurance, so the full > cost doesn't come out of the household budget. > > "He's trying to avoid the perception that the middle class is going to > be taxed," said Dan Mendelson, president of Avalere Health, an > information company that serves the health industry and government. "The > trick is to get funding for the bill but not to have anything that > smacks of a middle-class tax." > > The medical devices industry says the taxes will get passed on to > consumers. Republicans say that amounts to a violation of President > Barack Obama's campaign pledge not to raise taxes on the middle class. > Five GOP governors including potential 2012 presidential candidate Tim > Pawlenty of Minnesota wrote Baucus on Tuesday urging him to drop the tax. > > A top industry lobbyist said the tax will increase costs. > > "One of the principal goals of health reform is to bend the cost curve, > but there's no question that a significant portion of the tax is going > to get passed on to consumers or providers of health care," said Brett > Loper, representing AdvaMed, an industry trade group. > > The companies say they can't just take a $4 billion hit and suck it in. > > Loper cited a UBS Investment Research study that estimated the tax > equals about one-fifth of industry profits. And the levy would take > effect right away, before the coverage expansion in the Baucus bill gets > going in 2013. That means the companies would start paying before they > get the benefit of millions of new government-subsidized customers. > > Scott Mulhauser, a spokesman for Baucus, said it's only fair. Hospitals > and drugmakers have volunteered to take cuts to help pay for the > overhaul - and so should device companies. > > "Revenues to the device manufacturing industry will go up as insurance > coverage expands, and this fee will ensure the industry helps contribute > to the reform effort as it benefits," Mulhauser said. > > Supporters and detractors were equally surprised when Baucus' seemingly > arcane "fee" on the medical devices industry turned out to have such > potentially broad consequences. The tax would be levied on the companies > themselves, not directly on products. > > The government classifies medical devices into three types, from Class 1 > to Class 3. Class 1 includes items like Band-Aids and Q-tips. Class 3 is > for high-tech, high-risk devices, such as automatic cardiac > defibrillators implanted in the body. Early sketchy versions of the > Baucus plan made it sound like the companies would be taxed on revenues > from all medical devices, giving rise to the Q-tip tax. > > Last week, when Baucus formally unveiled his plan, he exempted Class 1 > devices. > > But critics kept talking about the Q-tips tax. > > "This bill has new taxes on everything from Q-tips to pacemakers, and > cancer screening to pregnancy tests," Sen. Charles Grassley, R-Iowa, > said Tuesday morning, before Baucus announced his latest changes. > "Experts and economists say that all of these health care taxes would be > passed on to consumers." > > His office said later that Grassley wasn't referring to the devices tax, > but another Baucus provision limiting a tax break now on the books that > allows consumers to buy Q-tips and other medical goods and services with > pretax dollars. > > The Q-tips debate continues. > > - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
