Monday, June 10, 2019
Durable Medical Equipment Essay Example | Topics and Well Written Essays - 2500 words
Durable Medical Equipment - Essay ExampleThe Government, through this act, intentionally ignored the fact that most of the American citizens were already in use or covered by the Medic atomic number 18, Medicaid and other private insurance covers. This would not lead to the upsurge or little increase in sales of the medical devices assumed by the state to enable the companies offset the added cost of nearly $30 billion that was expected to accrue in this diligence as per Congressional Budget office foresight (Bayh par 1). The companys bottom line is that, the tax cannot be passed to the buyer, as most of those devices atomic number 18 directly sold to public hospitals, physicians, and other health service providers through long-term contracts signed, which locked the prices. A 2.3% tax on the companys sales is compeer to almost a 15% on the normal tax on profits, and if this added to the mandatory 35% corporate tax, it totals to 50% as the eventual tax impose on the industry. Thi s severely affects these companies, as they have to pay this excise tax whether they are making sales or not (Bayh par 2). Therefore, it would have been oftentimes simpler to peg the tax on profits rather than on sales revenue.Other players in the industry such as the medical software developing companies, which are small and numbering to hundreds, are the worst hit by this legislation. Their products, Apps, have a potential for revolution in raising the practice of medicine in the US and globally (Bayh par 2). The effect of this taxation is already manifesting itself for instance.