An Indiana-based medical device company is canceling plans to build five new plants in the Midwest because of the hit it will take from the 2.3 percent excise tax imposed by Obamacare.
The new tax will cost Cook Medical Inc. between $20 million and $30 million a year, Pete Yonkman, executive director of Cook’s strategic business told the Indianapolis Business Journal, limiting the amount Cook can spend on new plants. It took $30 million to revamp an abandoned factory in Canton, Ill. last year that will eventually employ 300 people in this small town.
“We had hoped, as we get bigger, that that would be our model for expansion,” Yonkman told the Indianapolis Business Journal. “To take these small manufacturing facilities and bring them to these communities, that had been hard hit by jobs leaving because they work ethic is amazing and the people are really supportive and excited.”
More than 200 years out from the founding, and the morons still haven't figure out that what you tax you get less of. Considering how big the medical device industry was getting in Indiana and how important it was going to be, I'm not sure the damage of this tax can even be calculated. I'd recommend you read the whole article, but it is very depressing.