http://www.irs.gov/newsroom/article/...220809,00.htmlProposed Regulations Issued on Medical Device Excise Tax
On Feb. 3, 2012, the IRS and the Treasury Department issued proposed regulations on the new 2.3-percent medical device excise tax (IRC §4191) that manufacturers and importers will pay on their sales of taxable medical devices starting in 2013. Additional information is available in the Medical Device Excise Tax FAQs.
You might want to try reading the text of the bill before making yourself look like a fool.
In your face.
http://www.cookmedical.com/newsDetail.do?id=71062010 annual global revenue for the company was approximately $2 Billion
How much money do you think it costs to open a new facility? Did you think it was free? Did you think the Money Fairy clad in the most shimmering samite would mount her pink unicorn and fly from her ivory tower on the Isle of Utopia in the Sea of Kum-ba-ya and start throwing money around?
Well, it costs money, and that's what profits are used for: expanding companies.
That's twice I just made you look like a buffoon.
In your face, again.
Of course you do.
Kind of reminds you of the Soviet Union, doesn't it? The 10-Year Plan, right?
$29 Billion over 10 years is $2.9 Billion per year. That wouldn't even pay for one Jell-O Party. It might pay for some whelks on treadmills.
Just to put that into perspective, $29 Billion would pay for the health care of 29,000 people, assuming you capped their maximum expenditure at $1 Million per person per life-time. Assuming a life-spans of 75 years, that comes to ~$13,300 per year per person for 75 years of life.
Calculate the Price Elasticity of various medical devices factoring in the 2.3% sales tax.
Provide a graph.
Show whether revenues increase or decrease.
If revenues increase, determine if profits will increase or decline -- because it's possible to increase revenues with no increase in profits or a loss of profits.
It's really shocking that you're not aware of that, yet you talk out of your neck.
This is a perfect example of Price Elasticity, and something I've mentioned repeatedly regarding Obamacare and that is the Big Question:
Exactly how much will one employee cost on January 1, 2014?
We can't even guess, because H&HS is still "interpreting" Obamacare and cranking out regulations. At last count, from the Federal Register, there were over +140 regulatory changes affecting the cost of health due to Obamacare. That was a few months ago when H&HS issued their mandate on women's preventative care. I should point out that the cost of that care has not yet been determined and factored into the cost of health care premiums. There are many more cost increases in the pipeline. That creates tremendous uncertainty in business, because businesses don't know exactly how to respond to the cost increases, since no one knows what the cost increases will be.
The question regarding costs, isn't "How much do I raise the price of my goods or services?", the question is "Can I raise the price of my goods and services?", because if you cannot raise the price (due to Price Elasticity), then you start taking losses.
Anyway, yes there is some kind of math, it's called Price Elasticity. Whether or not an increase in price results in an in increase and revenues and an increase in profits, or an increase in revenues and a loss of profits, or a decrease in revenues and loss of profits depends on the whether those particular goods (or services) are inelastic or elastic in terms of price. Generally speaking, anything elastic results in either an increase in revenues, but a loss of profits, or a loss of both revenues and profits.