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IRS finalizes new tax for medical devices in healthcare law

Home - by - December 6, 2012 - 19:00 America/New_York - 2 Comments

Reuters

(Reuters) – The U.S. Internal Revenue Service on Wednesday released final rules for a new tax on medical devices, products ranging from surgical sutures to knee replacement implants, that starts next year as part of President Barack Obama’s 2010 healthcare law.

The 2.3-percent tax must be paid, effective after December 31, by device-makers on their gross sales. The tax is expected to raise $29 billion in government revenues through 2022.

Companies including Boston Scientific Corp, 3M Co and Kimberly-Clark Corp have been lobbying the U.S. Congress for a repeal of the tax.

A repeal bill passed the Republican-controlled U.S. House of Representatives in June, but it has not been voted on by the Democratic-controlled Senate.

Many medical devices that are sold over-the-counter – such eyeglasses, contact lenses and hearing aids – are exempt from the tax, as are prosthetics, the IRS said.

The tax applies mostly to devices used and implanted by medical professionals, including items as complex as pacemakers or as simple as tongue depressors.

 

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» 2 Comments

  1. old_oaks

    December 6th, 2012

    Here’s Obamacare in a nutshell.

    Your coated pans… Throw the fcukers out!

    Cast iron cooking is where its at, you want to live long? Eat the same way pioneers of this country did!

    Thumb up +1

     
  2. Ten Megaton

    December 6th, 2012

    Obama is not going to raise taxes on the middle class. He’s just going to raise the cost on every fucking thing you need.

    That’s OK cause…..

    I got me a phome!

    Thumb up +3