Tongue-Depressor Tax Will Harm Jobs, Innovation: Ramesh Ponnuru
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Jan. 3 (Bloomberg) -- A year from now, the federalgovernment will start collecting a new tax on medical devicesfrom tongue depressors to imaging machines, thanks to thesweeping health-care overhaul that Democrats enacted in thespring of 2010. People in the industry say it’s already havingan effect.
In November, citing the new tax, Stryker Corp., whoseproducts include artificial hips and knees, announced that itwould let go about 1,000 of its workers. Earlier last year,Covidien Plc, maker of surgical instruments, said it would layoff 200 workers in the U.S. and move production to Costa Ricaand Mexico. It, too, cited the tax.