Tax on medical Devices?

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dm200
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Tax on medical Devices?

Post by dm200 » Sat Sep 28, 2013 9:27 pm

NOTE: THIS IS A QUESTION ABOUT CURRENT LAW!

What are the details of the tax (in current law) on medical devices that certain folks are getting excited about?

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LadyGeek
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Re: Tax on medical Devices?

Post by LadyGeek » Sat Sep 28, 2013 9:30 pm

This thread is now in the Personal Finance (Not Investing) forum (taxes).
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linguini
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Re: Tax on medical Devices?

Post by linguini » Sat Sep 28, 2013 9:48 pm

http://www.irs.gov/uac/Medical-Device-E ... -Questions

Short answer: it's a 2.3% excise tax on medical devices that is paid by the manufacturer. The impact of the tax on the cost of producing the device is already reflected in the price of the device when it is sold, so from a consumer point of view, the tax is entirely transparent to you and you will not need to pay any additional taxes after buying the device.

I will not make any predictions about the economic or political implications of the tax because that is not allowed on this forum.

Ed 2
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Re: Tax on medical Devices?

Post by Ed 2 » Sat Sep 28, 2013 9:57 pm

linguini wrote:http://www.irs.gov/uac/Medical-Device-E ... -Questions

Short answer: it's a 2.3% excise tax on medical devices that is paid by the manufacturer. The impact of the tax on the cost of producing the device is already reflected in the price of the device when it is sold, so from a consumer point of view, the tax is entirely transparent to you and you will not need to pay any additional taxes after buying the device.

I will not make any predictions about the economic or political implications of the tax because that is not allowed on this forum.
transparency? hmmm. :shock: it is already baked in the cake,for example higher prices in dental offices. costs already been passed to the consumers. I work on this field.
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Jack
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Re: Tax on medical Devices?

Post by Jack » Sat Sep 28, 2013 10:11 pm

The medical device tax is part of the revenue provisions of the ACA. In exchange for the windfall income the ACA expansion represents for health care providers, these fees recover some of that windfall and pay for some of the increased benefits to consumers.

Among them are fees on pharmaceutic manufacturers, expected to amount to about $8 billion a year, fees on insurers expected to amount to about $6 billion a year, and fees on device manufacturers, expected to amount to about $3 billion a year.

linguini
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Re: Tax on medical Devices?

Post by linguini » Sat Sep 28, 2013 11:53 pm

Ed 2 wrote:
linguini wrote:http://www.irs.gov/uac/Medical-Device-E ... -Questions

Short answer: it's a 2.3% excise tax on medical devices that is paid by the manufacturer. The impact of the tax on the cost of producing the device is already reflected in the price of the device when it is sold, so from a consumer point of view, the tax is entirely transparent to you and you will not need to pay any additional taxes after buying the device.

I will not make any predictions about the economic or political implications of the tax because that is not allowed on this forum.
transparency? hmmm. :shock: it is already baked in the cake,for example higher prices in dental offices. costs already been passed to the consumers. I work on this field.
By transparent to the consumer, I mean in the systems engineering sense that consumers can buy durable medical devices without being aware of any details of the tax, specifically because any effects of the tax are built into prices without the consumer having to know the details. I was not making any claims about the accountability or clarity or forthrightness of the tax, which is almost definitely not an allowed topic on this forum.

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dm200
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Re: Tax on medical Devices?

Post by dm200 » Sun Sep 29, 2013 7:10 am

linguini wrote:http://www.irs.gov/uac/Medical-Device-E ... -Questions

Short answer: it's a 2.3% excise tax on medical devices that is paid by the manufacturer. The impact of the tax on the cost of producing the device is already reflected in the price of the device when it is sold, so from a consumer point of view, the tax is entirely transparent to you and you will not need to pay any additional taxes after buying the device.

I will not make any predictions about the economic or political implications of the tax because that is not allowed on this forum.
Thanks.

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