Group items tagged

This article shows an example of an excise tax that has been damaged firms. A new 2.3% ad valorem US excise tax on medical devices, is, in my opinion, a mistake. 1,170 jobs were cut from one company as a result, and production will be down. This means that fewer devices will be made at a higher price, and furthermore means that fewer of those who need the devices will be able to purchase them, and they will get them at a higher price.

This article describes the new tax on various medical wares such as replacement hips and defibrillators. The new excise tax is within the US, and the prediction is that it will raise $20 billion by 2019. The tax will affect smaller companies the most, and as much as 10% of small companies earnings per share may be paid in tax.

This article talks of the excise tax placed on replacement hips, implantable defibrillators and other FDA-approved wares. This was originally done to help fund the health laws expansion of insurance coverage. However, this tax is starting to hurt companies producing these goods as they are having to introduce cost cutting plans. "Stryker Corp. said in a statement Thursday that the $130 to $150 million in will owe next year could consume one-third of of its research and development budget." The tax is becoming a burden on companies as they must give the money to the government instead of their research funds.

Punto Fijo, November 22nd, 2012 (Venezuelanalysis.com) - The Venezuelan government has announced new controls on the prices of housing rents, while prices of medicines are also currently under review. Many basic goods in Venezuela are subject to price controls, including some food items and domestic goods, and the government has now added housing rents to the list of products subject to regulated pricing. In taking some pointers from "The Rent Is Too D*** High" party, Venezuela has decided to set a case to case price ceiling for the housing rental market. Most landlords will set the price based on construction costs, which tends to put tenants in a tight situation when looking for a somewhat temporary residence. Because of this, the government of Venezuela has forced landlords into setting prices only as high as what the Housing Ministry determines to be the true value product. Venezuela has also started doing this with medication, since medicine should be made available to all who are in need of it, although there has been backlash from pharmaceutical companies. They argument is that the artificial lowering of prices in the pharmaceutical industry will cause suppliers to produce less of the medicine than what the population needs.