On the Medical Device Tax

by Zach Moore

A part of the "First Word, Last Word" column on the The Voice
Originally published on 10/31/13 and available here: http://www.buvoice.com/opinion/2013/10/31/first-word-last-word.html

(Advisor's note: this submission was required to be "about 500 words", but the subsequent rebuttal from a writer of The Voice totaled 637 words)

Since the beginning of Barack Obama’s presidency, an image has been painted for the American people of a universal, problem-free health care system that offers affordable or even “free” care. Based on the president’s rhetoric, one would believe that there is a magic money tree placed in the north lawn of the White House that miraculously drops leaves of one hundred dollar bills right into the pockets of Obamacare. Although this sounds excellent and the president somehow has fooled many Americans into believing this fairy tale, it is far from the case. An American who thinks based on logic understands the sad truth and reality, which is that President Obama has drafted a piece of legislation that is destroying the economy. Where does $60.1 billion of funding for the Affordable Care Act come from over the next decade? Sorry, not from the money tree the president is hiding from us all, but from the all too familiar 2.3% medical device tax.

Pacemakers: About to be way more $$$

Before jumping into the medical device disaster that the president has pursued, I believe it is important for readers to understand the importance this industry has in health care. Pacemakers, chemotherapy and defibrillators, just to name a few, are products that the medical device industry is responsible for. In order to produce and sell these products, research and development is key. A 2.3% tax on all revenues now significantly threatens the ability of this industry to devote money to innovate new products that could save lives.

Although many understand the effects on price and demand based on tax rates, it is obvious that the president does not. It is common sense for one to know what happens when tax rates increase on the revenues of a company: The price of goods go up in order to counter act the lost revenue. Therefore, what the president said would be more affordable, actually becomes less affordable. The price of medical devices goes up, therefore, making health care less affordable than it was before. What happens when these prices increase? Sales decrease, leading to a downward spiral of demand and lost revenues for one of the largest employers in the U.S.

Currently, according to the Wall Street Journal, the medical device industry employs 400,000 U.S workers directly, and another two million through supply and distribution. A 2.3% tax on this industry threatens many of these employees’ jobs. By cutting revenues by $6.7 billion annually, companies simply will not have the ability to maintain the size of their workforce. This is seen already, as, according to the Wall Street Journal, medical device companies have cut their workforce by 10% in order to brace for the impact.

This frivolous tax is something that the people of this country can not continue to ignore, nor can we as American’s continue to fall victim to the blinding image of something the president portrays as being free. Funding $60.1 billion comes from somewhere, and in this case it comes from thousands of lost jobs, increased costs for consumers, and irretrievable innovation that could have potentially saved lives.

A Jobless Economy: Obama's Polices are Damaging

by Zach Moore

originally published by The Voice on February 21, 2013
http://www.buvoice.com/opinion/2013/2/20/a-jobless-economy-obamas-policies-are-damaging.html

While graduation from higher education is supposed to be a colossal leap to an affluent future, a sluggish labor market awaits the average college student’s resume. With unemployment soaring nation-wide, there is an alarming level of unemployment of college graduates ages 25 and younger. According to the Department of Labor Statistics, 53 percent college graduates are unemployed or underemployed, and the diminutive amount of employed graduates is earning a median salary of a mere $27,000. This figure is a depreciated $3,000 less than students who earned a degree before the year 2007.

 

Moreover, out of the college graduates under the age of 25 who were working in 2011, 37.8 percent were working in a job that did not require a college degree, according to bls.gov. As these statistics develop, it is seen that there has been a serious decline over the last four years in which students have spent working extremely hard to ensure a prosperous future. Note that in 2007, around the time that Bloomsburg seniors were beginning the journey of a college education, the unemployment rate of recent college graduates was 5.7 percent. Through this, the question of who is to blame arises.

 

Over the last four years, President Obama has made a tremendous dent in the economy in which we reside. Students have been victims to the president’s detrimental policies already. This is seen through many aspects of a young American’s life, an example being tuition rates, which have gone up 25 percent under the president, according to bls.gov. All this while a landmark one trillion total student debt has accumulated. Through this we see that not only has President Obama made it increasingly harder for college students to find a job, but once they do accomplish this near impossible task, they will have a larger debt than any other graduates in history. If this is not bad enough, once graduates begin to dig themselves out of this bottomless pit of debt, they will have a very hard time doing so because of the falling median income under President Obama.

 

It is very simple for the eye to see a distinct downfall marked by the start of Barack Obama’s presidency. When President George W. Bush left office, the unemployment rate of young American’s 25 and younger was an astonishing 5.4 percent as reported on bls.gov. Sadly, four years later we see an unemployment rate of the same group of American’s hovering just below nine percent. These disturbing figures are a direct reflection of President Obama’s damaging economic policies. Until the president stops implementing policies that hurt American businesses, employers will continue to not hire. Even if they do choose to employ a graduate, an exponentially smaller figure of capital will be put into your pocket.

 

President Obama has raised taxes on employers to the highest in recent history. The results of this are obvious: when employers have less money, they are no longer investing, no longer hiring, and most importantly no longer growing fiscally. Until President Obama does more to create economic growth, such as financially encouraging employers to hire young, educated Americans, underemployment and unemployment will continue to rise.

 

The “investment” of higher education will continue to diminish as President Obama’s disastrous economic policies continue, and the true value of a degree will no longer exist. Please examine this simple equation of economics: high unemployment, combined with record setting landmarks of student debt, equals a slow and distraught economy, which our generation is now pioneering. If we, the young Americans, the future of the United States, cannot prosper, who possibly can?