Monday, September 12, 2011

Do you work in the Medical Device field? You won't after 2013 due to this new Tax.

The Advanced Medical Technology Association (AdvaMed)   released a report late last week (Sept. 7th 2011) on how 43,000 jobs in the "Medical Device" field are going to be lost due to yet an other new Tax.

Here is the full report: Employment Effects of the New Excise Tax on the Medical Device Industry.pdf by Diana Furchtgott-Roth and Harold Furchtgott-Roth.

"Medical Device" as defined by the IRS are covered in USC TITLE 26 - Subtitle D - CHAPTER 32 - Subchapter E - § 4191. Section D of Exemptions is the problematic portion to those of us doing Embedded Medical Devices:
"any other medical device determined by the Secretary [of the Treasury] to be of a type which is generally purchased by the general public at retail for individual use."
So now we don't have a doctor nor a person familiar with Embedded System Medical Devices deciding which devices will get a %2.3 excise tax, that will cause Medical Device manufacturers to send yet more jobs overseas to avoid paying the tax, at the Embedded Communities expense.

If you work in the Medical Device field, it is probably time to get your resume in order. I'm going to be polishing up mine, because there is no way to tell what clueless bureaucrat will consider a Medical Device...


  1. Sheesh. That sucks.

    Oh well, we already have pointy haired bosses sending our jobs overseas, now it's the politicians.

    Soon there will be no one left to speak for us.

  2. Clearly the Politicians have forgotten this is a Representative Republic. They are to represent their constituents, *us*, not corporations and lobbyists. Exactly when did our public servants become our leaders anyway?