Politics and Money

[shermann7]

Memphis Manufacturer Cites Obamacare Tax In 100 Layoffs

http://libertycrier.com/business/memphis-manufacturer-cites-obamacare-tax-in-100-layoffs/?utm_source=The+Liberty+Crier&utm_campaign=150ff0f101-The_Liberty_Crier_Daily_News_2_8_2013&utm_medium=email

Memphis officials have showered millions of taxpayer dollars upon one of the city’s major medical manufacturing firms, one that employs almost 2,000 people. Now that company says Obamacare has jeopardized its operation.

In a story that made national headlines last week, Smith and Nephew company officials announced they were laying off 100 employees. In a statement, they cited a new Medical Device Tax, a provision of Obamacare, as the primary cause.

Industry representatives call the tax devastating.

A provision in what’s officially called the Affordable Care Act (ACA) imposes a 2.3 percent tax rate directly on a company’s yearly sales, regardless of whether the company makes a profit. The tax went into effect at the start of this calendar year.

“This tax is going to cost the company roughly something to the tune of $25 million per year,” said Smith and Nephew spokesman Joe Metzger.