There are millions of Americans who want to see Obamacare repealed, and with good reason. But it’s a rare day indeed when a Democratic candidate for the U.S. Senate (and former adviser to President Obama) calls for part of the president’s health care law to be eliminated.
But that’s just what happened when Elizabeth Warren, who is campaigning in Massachusetts against incumbent Senator Scott Brown (R), authored an op-ed that calls for the repeal of Obamacare’s medical device tax. Under the law, Obamacare imposes a 2.3 percent excise tax on medical device manufacturers, beginning in 2013. The cost of the new tax–$20 billion from 2013 to 2019–will be passed down to consumers, who will ultimately pay the price through higher medical costs and premiums.
Of course, new taxes bring new consequences, and Massachusetts will feel its share of the pain. Back in 2010, a CEO of a medical device company that employs 650 people in Massachusetts warned of Obamacare, “This bill is a jobs killer. We could be forced to (move) manufacturing overseas if we can’t pass along these costs to our customers.” Since all politics is local, it’s not surprising that Warren is now trumpeting the medical device and diagnostics industry in her state, remarking that it “employs around 24,000 people and is responsible for 13 percent of all state exports.” The continued success of that industry, Warren writes, depends on innovation — and the right climate for that innovation to occur demands a repeal of the medical device tax:
Innovation starts with a creative spark—but that spark turns into a great invention only if the right conditions are in place. Steady financing and a smart, highly skilled team are critical. The government also plays a critical role in speeding – or slowing – the pace of innovation. Three changes in government policy are essential: a more efficient regulatory system at the FDA, repeal of the medical device tax, and an increased national commitment to research and education.
There are plenty of other taxes embedded in Obamacare, the ten most expensive of which we’ve identified here. And they’re just a handful of the reasons that the President’s health care law is fatally flawed. The best way to solve the problem, though, isn’t picking it apart piece by piece. A total repeal of the law is the answer.