By Tom Quiner
A liberal who voted for Obamacare twice now admits the truth: Obamacare is going to devastate our health care system.
Former Indiana Senator, Evan Bayh, who now works in the private sector, now sees the coming carnage and publicly confesses it in the Wall Street Journal:
“The Supreme Court decision in June upholding the Affordable Care Act leaves in place a tax on medical devices that threatens thousands of American jobs and our global competitiveness. It will also stifle critical medical innovation in the industry that gave us defibrillators, pacemakers, artificial joints, stents, chemotherapy delivery systems and almost every device we depend on to save lives.”
Mr. Bayh now works in a private law firm representing medical manufacturers. He sees how a coming, new Obamacare tax is going to hurt U.S. jobs and healthcare:
“The 2.3% tax will be charged to manufacturers on each sale and takes effect in January. Many U.S. device companies, in response, have already announced layoffs, canceled plans for domestic expansion and slashed research-and-development budgets.”
The Obama/Pelosi/Reid mindset assumes tax hikes take place in a vacuum, that they don’t affect consumer and business behavior. They believe that somehow their marketplace re-engineering schemes can cheat the laws of supply and demand, a fatal liberal conceit.
Once again, they’re wrong.
Now, even an Obamacare supporter has had the scales removed from his eyes:
“The hit will be severe. For a typical company, a 2.3% tax on revenues equals a 15% tax on profits. When combined with a 35% corporate tax and state corporate taxes, the tax rate for the medical-device industry will exceed 50% in most jurisdictions. Many marginally profitable businesses will then hemorrhage red ink, since they’ll have to pay the excise tax whether they are making money or not.”
Do you wonder why America isn’t creating enough jobs anymore? Obamacare is one reason. Business owners see how the cost of employing people is going to rise. They can see that the cost (tax) of being successful is going to rise, resulting in a disincentive to expand their businesses. They can see that it will be cheaper to make their products in another country:
“As a result of the looming device tax, production is moving overseas, good jobs are going to Europe and Asia, and cutting-edge medical devices will now be produced elsewhere for import into the U.S.”
Mr. Bayh says it’s not just jobs America will be losing, the quality of our healthcare will also take a hit:
“Meanwhile, the impact on the quality of care is incalculable but no less real. Thirty billion dollars must be taken out of operations or R&D. Who knows what lifesaving devices that might have been developed will fall victim to this tax?”
In light of the ugly reality of Obamacare, Americans must prepare for permanent decline. I can’t think of a better man to manage this decline than Barack Obama. After all, he deserves much of its credit.
He deserves your vote if you support the export of lucrative jobs to Europe.
On the other hand, if you want to revitalize our economy, if you want to revitalize our health care system, if you want a return to pre-Obama prosperity, then vote for Mitt Romney and Paul Ryan.