Plans for medical device tax finalized by the IRS
Tax will cover everything from pacemakers, sutures, surgical implants
After weeks of planning and negotiations, the U.S. Internal Revenue Service has released the final rules governing new taxes on medical devices. The tax will cover all items, such as surgical sutures to knee replacement implants. The tax will become effective in 2013 under the umbrella of President Barack Obama's 2010 healthcare law.
Companies affected by the new tax rule include Boston Scientific Corp, 3M Co and Kimberly-Clark Corp has been lobbying the U.S. Congress for a repeal of the tax.
A repeal bill passed the Republican-controlled U.S. House of Representatives in June. It has not been voted on by the Democratic-controlled Senate.
Currently, many medical devices are sold over-the-counter without a doctor's prescription. The IRS says that such items as eyeglasses, contact lenses and hearing aids are exempt from the tax, as are prosthetics.
The new tax applies mostly to devices that are used and implanted by medical professionals, including such complex items or as rudimentary as tongue depressors.
Experimental cancer treatment devices are not exempt from the tax.
Some medical device companies are hoping to delay the tax's start date as part of a resolution of the "fiscal cliff" deadline at the end of the year involving several taxes and spending measures.
"We would like to be part of the punt," chairman of Cook Group Inc., Steve Ferguson said, referring to an extension of current tax policy into 2013.
Director at PricewaterhouseCoopers LLP as well as a former IRS official, Lew Fernandez points out to one potentially problematic aspect of the tax. Upon implementation, companies selling dual-use products to medical and non-medical customers must pay the tax on those products, potentially putting them at a competitive disadvantage.
For example, it remains "an open question" when latex gloves come under the tax, he said.
© 2012, Catholic Online. Distributed by NEWS CONSORTIUM
Pope Francis Prayer Intentions for December 2013
General Intention: Victimized Children. That children who are victims of abandonment or violence may find the love and protection they need.
Missionary Intention: Prepare the Savior's Coming. That Christians, enlightened by the Word incarnate, may prepare humanity for the Savior's coming.
Rate This Article
Leave a Comment
More Politics & Policy News
- Marriage Liberation Movement: Global Defense of Marriage in France, China and Around the World
- Principles are expensive: Republican governors missing out on billions in Medicaid funds
- Rush Limbaugh is Wrong, Karen Finney of MSNBC is Nuts: Pope Francis and Capitalism
- NSA REVELATIONS: Ways that would have been previously unimaginable
- Gap between rich and poor: Income gap threatens U.S. 'way of life,' Obama says
- Increasing numbers of young people opposing Obamacare
- Vatican, State Department defend embassy move
- Precedent set by Obama may lead to revolt against federal government, expert says
- Oops, we didn't think of that! Utah may pull NSA plug by cutting water supply to facility
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?