Investigative Reporting Non Existant

No such thing as investigative reporting. There are so many issues out there that are real  and will affect "we the people" that nobody is reporting on them in sufficient enough detail that the average American can understand them or how they will impact individuals. I will begin a series posts to address such issues in the simplest of terms in an effort to help folks see through the smoke and mirrors that politicians create and media support.

 

First, let’s consider the health care bill. One element is a new tax on medical equipment manufacturers. At implementation, this new tax will be 2.3 percent of gross revenue on the sales of medical equipment.  This tax is on  gross revenue and not profit. Never mind that this should be unconstitutional to discriminated against a single industry and apply  a tax on one and not the others. Does not seem fair.

 

Let’s do some math. Let’s assume the average profit margin among medical manufacturers is 7 percent.  I researched this and discovered that the profit margins ranged significantly including some with losses already, so I believe 7 percent is a fair starting point. Now with $10 million in gross sales that means the new tax applied equates to a tax liability of $230 thousand that must be paid to the government. In this example, the company would earn $700 thousand in profit but must pay $230 thousand in the new tax.  That is 32 percent of their profit.  The question  then becomes how do they make that up. It’s simple, they will have to raise prices paid by the  consumer to offset the  tax. How much you wonder? A staggering 5 percent increase in the price of medical equipment will be necessary just to pay the tax and maintain normal and reasonable  profit margins. Does this help the consumer or does it lower medical costs. I think  not and wonder why anyone thought this was a good idea.

 

It is clear that no media outlet is taking the time or energy to research these issues and report them to the American people. More questions are: Will this tax apply to  imported medical  equipment manufacturers. That is not  clear since the tax is applied at the manufacturing level it is not understood if the tax would apply to imports which seems like another reason for jobs to leave this country and go where the tax would not be applied. At the very least, American manufactures will have yet another disadvantage in the market. Who pays this tax ultimately? We do.  This is a tax on Middle America and everyone else.

 

Wake up people. We can't afford the current government and better plan to change it as soon as possible. Anyone who thought this was a good idea is an idiot. This is what happens when you vote on the bill before you  see what is in it.