December 11, 2012
Punished for Succeeding
A female entrepreneur - an example of the kind of success Democrats claim to want for women everywhere - writes Obama to ask why the Affordable Care Act is forcing her to move operations overseas?
Theragenics makes “medical devices for prostate cancer, vascular access and wound closure.” In her letter to Mr. Obama, Ms. Jacobs noted that her company has four factories in four states in the U.S., which employ 626 people. She stated: “In our 30-year history we have treated over 200,000 men for prostate cancer, and we have been proud of our workforce and proud to have treated so many dads, brothers and husbands for cancer. As a public company we have fallen prey to the heavy burden of being public with increased expenses associated with [Sarbanes Oxley] and now Dodd Frank.” She also reminded the president that she had written to him back in 2009, when she stated, “We were paying about $8,000 per employee per year to be public and comply with the new Dodd Frank regulations. That money could be better spent on jobs and expansion.”
Under Obamacare, there is a new tax specifically on the gross revenue of medical device manufacturers. Most people (outside of Washington) understand that if we tax something, we get less of it. A higher tax on medical device manufacturers means fewer and more expensive medical devices that save lives, and less research and development to develop new and better devices. As Ms. Jacobs explains: “Our products are for people with prostate cancer, heart disease, breast cancer and orthopedic knee or hip surgeries. Our 626 employees’ futures are now uncertain. The cost of regulation, legislation and now the Device Tax have provided an atmosphere that is close to untenable.”
Ms. Jacobs, who started out as a nurse with a passion for science, has headed Theragenics Corp. for the past two decades. She is a classic entrepreneur, an all-American woman, who likes to hunt, fish and go to the symphony. She serves on the boards of many civic institutions and other organizations. Now, having built a successful company that competes in the global marketplace, she is being forced by ignorant and misguided legislators and regulators to move operations outside of the United States. She concluded her letter to the president: “Our 30-year-old company has done all our country has asked of it and has been punished. I am immensely sad at this writing.”
Perhaps she should look into green energy? The federal government is willing to invest millions of dollars in unsuccessful companies with no strings attached.
Posted by Cassandra at December 11, 2012 08:05 AM
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The female entrepreneur, much as everyone else convinced that the Left in general and Mr. President in particular lack only a proper schooling in the immutable laws of economics and human action, seems willfully oblivious to the fact she and Mr. President are at crossed purposes - not crossed methods. Schooling Mr. President, et al about the deleterious effects of raising tax rates or that taxing A gets one less of A is like schooling the devil that his enticements will land a person in hell.
Posted by: George Pal at December 11, 2012 11:04 AM
Under Obamacare, there is a new tax specifically on the gross revenue of medical device manufacturers.
My employer has already lost a customer (xx% of 2011 fiscal revenue) in part to this crap. Not _stated_ so but c'mon: they needed to cut costs (for some mysterious reason) and so they found a manufacturer who would give them a break and so buh-bye. They're in a downward spiral now but hey. Whatever.
And taxes are going up on _another_ customer, this time for the medical gizmos we make for them.
I wonder, will the company still be there when I come back from vacation next week?
Posted by: Brian Dunbar at December 11, 2012 02:43 PM
And I thought the Germans were whackadoodles...
Posted by: Knut, the Ambiguously Gay Teen Psychotic Bear at December 11, 2012 07:12 PM
It's OK to make money providing something for people unless it's something they really need, in which case we have to put you out of business in order to prevent your taking advantage of their need. Better they shouldn't get it at all than that you should get rich providing it.
Posted by: Texan99 at December 12, 2012 11:05 PM
" Better they shouldn't get it at all than that you should make any money at all providing it."
Posted by: DL Sly at December 13, 2012 12:35 AM
I can't help but wonder if the new tax on medical devices will be factored into their cost-effectiveness by the new government panels that are supposed to consider such things. After all, if they tax ALL medical treatments until they're no longer cost-effective, they don't actually have to provide anything...
Posted by: Matt at December 13, 2012 01:33 AM