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Obamacare Tax Stops Medical Equipment Business Expansion

Tell me again how great Obamacare is supposed to be for our country. Remind me how it is supposed to help individuals and businesses. Explain to me how it is supposed to make everything better. Then try telling all of that to Indiana-based Cook Medical. Thanks to the new tax on medical devices that will be going into effect next year, they are having to scrap plans to expand their business into five Midwestern communities. So much for job creation.

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(Fox News) Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years.

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“This is the equivalent of about a plant a year that we’re not going to be able to build,” a company spokesman told

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He said the original plan was to build factories in “hard-pressed” Midwestern communities, each employing up to 300 people. But those factories cost roughly the same amount as the projected cost of the new tax.

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“In reality, we’re not looking at the U.S. to build factories anymore as long as this tax is in place. We can’t, to be competitive,” he said.

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ObamacareYes, this is our government, hard at work to preserve jobs. As is almost always the case, anything the government tries to do usually has consequences that reach far past the original intent of the law. (Actually, in the case of Obamacare, I’m not so sure the consequences were not the original intent.)

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Is this supposed to be a good thing? The five plants in question would have employed up to 1,800 people. That employment would have resulted in greater revenue for each community. Tax revenues would have naturally gone up, as people with more money to spend usually spend more money. The economic impact of these 1,800 jobs would have reached far past their original employment.Jobs wouldn’t have been “saved”, but rather created. People who previously held no job would have been able to better support their families. Real hope and change would have ensued, instead of the lies and half-truths we are being fed by the liberals, with the Obama White House right up front. William Teach says it better than could I.

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(Pirate’s Cove)Wouldn’t it make more sense to decrease taxes, meaning people would purchase that product in greater numbers, a product made in America by (hopefully) American workers, so that the company can make more money, which means more tax money is paid to the state and local governments through sales tax and, because earnings are greater, more income tax to the state and federal governments? In Liberal World, they’d just prefer the money goes straight to the federal coffers, and damned the consequences.

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It seems we are stuck with Obamacare, at least for the time being. Unless true conservatives are able to take over the Senate, and build a stronger majority in the House of Representatives, we stand not a chance of repealing it with meaningful reforms. Even then, our efforts will be severely hamstrung, unless President Obama is removed from office and sent back to Chicago or Hawaii. If he defeats Mitt Romney, he will fight any effort to remove Obamacare from the books. Given his past tendency to heed no one’s advice but his own, Obamacare is here to stay, as long as he is in office.

About LD Jackson

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LD Jackson has written 2053 posts in this blog.

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Founder and author of the political and news commentary blog Political Realities. I have always loved to write, but never have I felt my writing was more important than in this present day. If I have changed one mind or impressed one American about the direction our country is headed, then I will consider my endeavors a success. I take the tag line on this blog very seriously. Above all else, in search of the truth.

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  • Another unintended consequence (or was it intended, like you I think it was) of Obamacare. We are already hearing stories about doctors quitting, hospitals thinking about closing, and now this and most of Obamacare doesn’t even go into effect until after the election. This is as good as it gets, it is only downhill from here.

    • I am afraid this is just the tip of the iceberg. There are many provisions in this legislation that most of us are unaware of. Many of the legislators who voted in favor of it aren’t even aware of them. The unintended consequences are only going to grow.

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  • lou222

    Funny how that works, always AFTER the election things will kick in…it is almost like they knew if it was before that maybe people might vote differently. If Romney gets in, will all of Obamacare be taken out? How can it if alot has already been put into place? Then you also have some of the Republicans comment about Repeal and Replace,,,with WHAT? Is that supposed to make us feel better? Replaced? That sure sends up another red flag for me. Why not just Repeal? I cannot blame doctors for not wanting to have a dog in the hunt at this time, imagine they know something we don’t? Well, guess everyone knows what is best for us little peons! They probably forgot we pay their salaries, but that is just a small formality, isn’t it?

    • There are areas of our health care system that do need reform. Many of those areas would benefit greatly from reduced government intrusion. Less red tape and regulations, etc. The calls to repeal and replace Obamacare are coming in response to the accusations of the Democrats that the Republicans don’t have a real plan of their own.

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  • Hey, just remember, Obama himself said that granny will have to take the “pain pill,” rather than have the expensive surgery. This tax will help make sure that granny can’t get the surgery.

    Great post as always Larry.

    • lou222

      Matt, wasn’t there an area of Obamacare that stated after 70, pacemakers and new joints would not be an option? I read something about that. I have a friend that is 68, she says her pacemaker is supposed to last maybe another 3-4 years,(depends on how much it has to activate and on 1 or both leads), she is pretty much resigned to the fact that she is going to die early because she will be turned down for a replacement. This is what people are going to deal with? I guess then we have a built-in obsolescence date that will be forced on us… much for living in the greatest nation in the world.

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