Jobs Moving to Mexico Thanks to ObamaCare Taxes | Texas GOP Vote

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Jobs Moving to Mexico Thanks to ObamaCare Taxes

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A New York medical device maker announced last week that they would have to outsource jobs to Mexico in anticipation of ObamaCare’s tax on medical devices:

“SOME WELCH ALLYN ACCOUNTING JOBS WILL MOVE TO MEXICO”: (Charley Hannagan, “Some Welch Allyn Accounting Jobs Will Move to Mexico,” The Syracuse Post-Standard, 9/11/2012)

275 JOBS, OR 10% OF WORKFORCE, TO BE CUT OVER THE NEXT THREE YEARS: (Charley Hannagan, “Some Welch Allyn Accounting Jobs Will Move to Mexico,” The Syracuse Post-Standard, 9/11/2012)

OBAMACARE’S MEDICAL DEVICE TAX IS THE CAUSE FOR THIS OUTSOURCING TO MEXICO: “The moves are meant to prepare Welch Allyn to address the new ‘onerous’ U.S. Medical Device Tax scheduled to take effect next year under the Affordable Care Act, the company said.” (Charley Hannagan, “Some Welch Allyn Accounting Jobs Will Move to Mexico,” The Syracuse Post-Standard, 9/11/2012)

“MED DEVICE FIRM TO CUT WORKFORCE 10 PERCENT, SAYS OBAMACARE THE REASON”: (“Med Device Firm to Cut Workforce 10 Percent, Says ObamaCare the Reason,” Washington Free Beacon, 9/13/2012)

WHAT IS THE “MEDICAL DEVICE TAX”? IT’S A TAX ON CARDIAC DEFIBRILLATORS, BANDAGES AND ARTIFICIAL HIPS:

OBAMACARE’S “HEART ATTACK TAX” WOULD TAX “EVERYTHING FROM CARDIAC DEFIBRILLATORS TO ARTIFICIAL JOINTS TO MRI SCANNERS”: ” ‘Taxmageddon’ isn’t only about the half-trillion-dollar blow to the economy that arrives in 2013 on the end of the Bush-Obama tax rates. Several of the Affordable Care Act’s worst tax increases kick in too, such as the new excise tax on medical devices. The 2.3% levy applies to the sale of everything from cardiac defibrillators to artificial joints to MRI scanners.” (Editorial, “Improvised Explosive Device Tax,” The Wall Street Journal, 5/28/2012)

THE TAX COULD HIT PACEMAKERS, STENTS, ELASTIC BANDAGES, ARTIFICIAL HIPS AND KNEES: (Susan Kelly, “Medical Device Tax May Spur Price Hikes, Cost Cuts,” Reuters, 4/18/2012)

TAX WILL MEAN “FEWER PAIN-REDUCING AND LIFE-EXTENDING INVENTIONS”: ”So the 2.3 percent tax, unless repealed, will mean not only fewer jobs but also fewer pain-reducing and life-extending inventions — stents, implantable defibrillators, etc. — which have reduced health-care costs.” (George Will, “Taxing Jobs Out of Existence,” The Washington Post, 5/9/2012)

MEDICAL INDUSTRY: “TAX WILL STIFLE INNOVATION AND SEND JOBS OVERSEAS”: (Susan Kelly, “Medical Device Tax May Spur Price Hikes, Cost Cuts,” Reuters, 4/18/2012)

This is only the latest company that has been forced to send jobs overseas due to ObamaCare’s job-destroying tax hikes and other provisions that promote outsourcing:

OBAMACARE HAS A TAX ON CARDIAC DEFIBRILLATORS: “ ‘Taxmageddon’ isn’t only about the half-trillion-dollar blow to the economy that arrives in 2013 on the end of the Bush-Obama tax rates. Several of the Affordable Care Act’s worst tax increases kick in too, such as the new excise tax on medical devices. The 2.3% levy applies to the sale of everything from cardiac defibrillators to artificial joints to MRI scanners.” (Editorial, “Improvised Explosive Device Tax,” The Wall Street Journal, 5/28/2012)

JOBS HAVE ALREADY BEEN OUTSOURCED DUE TO THE HEART ATTACK TAX:“Cook Medical is no longer planning to open a U.S. factory a year. Boston Scientific, planning for a more than $100 million charge against earnings in 2013, recently built a $35 million research and development facility in Ireland and is building a $150 million factory in China. (Capital goes where it is welcome and stays where it is well-treated.) Stryker Corp., based in Michigan, blames the tax for 1,000 layoffs. Zimmer, based in Indiana, is laying off 450 and taking a $50 million charge against earnings. Medtronic expects an annual charge against earnings of $175 million.” (George Will, “Taxing Jobs Out of Existence,” The Washington Post, 5/9/2012)

INDIANA COMPANY CANCELLED PLANS TO OPEN FIVE NEW PLANTS DUE TO HEART ATTACK TAX: “Cook Medical Inc. had been planning to open five new manufacturing plants over the next five years in small communities around the Midwest, including Indiana, but has shelved those plans because of the hit it will take from a new U.S. tax on medical devices.” (J.K. Wall, “Cook Medical Shelves Midwest Expansion Plan,” Indiana Business Journal, 7/27/2012)

COMPANY NOW SAYS “THEIR FUTURE GROWTH WILL BE FOCUSED OVERSEAS”: “Since then, Cook officials have said their future growth will be focused overseas. Cook already has production facilities in Ireland, Denmark and Australia.” (J.K. Wall, “Cook Medical Shelves Midwest Expansion Plan,” Indiana Business Journal, 7/27/2012)

MEDICAL DEVICE ASSOCIATION SAID OBAMACARE’S HEART ATTACK TAX COULD FORCE “43,000 JOBS OVERSEAS”: “The Advanced Medical Technology Association (AdvaMed) released a report Wednesday that says device-makers might ship 43,000 jobs overseas once the tax takes effect in 2013.” (Sam Baker, “Device-Makers Say Tax Will Cost 43,000 U.S. Jobs,” The Hill‘s ” Health Watch,” 9/7/2011)

MEDICAL DEVICE COMPANY LEADERS THINK NEW TAX WILL HURT MANUFACTURERS: “Executives in the medical device manufacturing industry predict that a new excise tax and the burden of its related compliance costs will hurt their companies’ bottom lines, according to a survey conducted by KPMG LLP, an audit, tax, and advisory firm.” (Chris Reidy, “KPMG Survey: New Tax Could Hit Medical Device Companies Hard,” The Boston Globe , 4/18/12)

40% MEDICAL DEVICE COMPANY LEADERS EXPECT TO RESORT TO LAYOFFS:“According to the survey of 190 financial executives from the medical device manufacturing industry, 40 percent of respondents said their companies are already contemplating actions such as price increases and cost reductions, including possible layoffs, as a way to stay competitive.” (Chris Reidy, “KPMG Survey: New Tax Could Hit Medical Device Companies Hard,” The Boston Globe , 4/18/12)

13,303 SMALL- TO MEDIUM-SIZE MEDICAL DEVICE FIRMS IN U.S., OR 91% OF ALL MEDICAL DEVICE COMPANIES COULD BE AFFECTED: (Michael Ramlet, Robert Book and Han Zhong, “The Economic Impact of the Medical Device Tax,” American Action Forum, 6/4/2012)

IT’S NOT THE ONLY PART OF OBAMACARE THAT SENDS JOBS OVERSEAS:

OBAMACARE’S MEDICAL LOSS RATIO MANDATE COULD FORCE EMPLOYERS TO “MOVE MORE JOBS TO CHEAPER-WAGE COUNTRIES”: “Moreover, the health care reform law could prod insurers to move more jobs to cheaper-wage countries. The new law requires companies to spend 80% to 85% of premiums on medical care, limiting the amount available for administrative expenses.” (Don Lee, “Worries Grow As Health Care Firms Send Jobs Overseas,” Los Angeles Times, 7/25/2012)

OBAMACARE “MAY BE A CATALYST FOR NEW FORMS OF OUTSOURCING”:“The Affordable Care Act, by increasing the number of people in the health care system and changing the way delivery is funded, may be a catalyst for new forms of outsourcing.” (George Lauer, “Outsourcing May Grow As Health System Evolves,”California Healthline, 8/2/2012)

Despite ObamaCare’s ugly record of promoting outsourcing, Democrats have repeatedly voted to defend ObamaCare and its provisions that send jobs overseas:

98% OF HOUSE DEMS VOTED IN JAN 2011 AGAINST REPEALING OBAMACARE AND STOPPING IT FROM OUTSOURCING JOBS: (Roll Call 14, Clerk of the U.S. House, 1/19/2011)

96% OF DEMOCRATS VOTED AGAINST DEFUNDING OBAMACARE’S MEDICAL LOSS RATIO PROVISION THAT IS OUTSOURCING JOBS: (Roll Call 110, Clerk of the U.S. House, 2/18/2011)

96% OF HOUSE DEMS VOTED AGAINST CUTTING OFF FUNDING TO IMPLEMENT OBAMACARE’S OUTSOURCING PROVISIONS: (Roll Call 270, Clerk of the U.S. House, 4/14/2011)

77% OF HOUSE DEMOCRATS VOTED AGAINST REPEALING THE HEART ATTACK TAX THAT COULD LEAD TO OUTSOURCING: (Roll Call 361, Clerk of the U.S. House, 6/7/2012)

97% OF HOUSE DEMOCRATS VOTED AGAIN THIS JULY TO PREVENT OBAMACARE REPEAL: (Roll Call 460, Clerk of the U.S. House, 7/11/2012)

at Sep 18, 2012 9:13 AM