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Controversial tax on medical devices set to get into effect

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    Republicans warn of job losses

  • Duration 5:12
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This transcript is automatically generated

New taxes linked to obamacare.

Go into -- back in January the most controversial -- believe it or not is on medical supplies everything from a latex glove.

Through an X ray machine Republicans it's gonna hurt the economy.

Congressman Tom price at a Georgia saying quote.

The tax -- medical devices harms America's ability to conduct necessary research.

And development to maintain our global competitiveness.

Resulting in the loss of tens of thousands of jobs and fewer groundbreaking innovations in this field.

-- millions of Americans unemployed is simply makes no sense Stephen Moore senior writer Erica -- Wall Street Journal height it was Stephen good morning I held a 1% 43000.

Jobs because of this what a latex glove gets taxed.

At as they -- -- like MRI machines in big items like that.

Now I actually you know thank you for doing this segment because a lot of Americans don't realize it when the president calls for all of these new taxes in this fiscal.

Clip negotiation.

Mr.

President we already have a big tax increase that's gonna hit.

I January 2 and out of courses that that obamacare taxes and you mention one of them the tax on medical devices and medical equipment bell which I agree with that.

Congressman price I think that will reduce innovation and war reduced the kind of Bach invention and new products that we need to keep people healthier in addition that -- don't forget there's also something called a three point 8% investment tax surcharge in the -- care bill that also starts in January and that so when one of the things that presents us that some little misleading he says well I've only erase the tax rates back where they -- In the Clinton area and are you heard him say that a lot times -- that he's not including that three point and that they've built three point 8% investment tax that will raise the taxes higher than they were in the -- I see some and seeing it right here -- -- that more than 200000 dollars or her a household a 250 you're above that subject to a new three point 8%.

Tax what you -- ultimately Republicans argue this is coming down the back of the economy.

And that it will cost jobs cook medical which is based out of Indiana I mean they have really been vocal about this thing ever since obamacare was floated to and and -- years ago.

They will scrapped plans to open five new plants.

Because of the tax.

And there are others that say justice for fit provision alone will cost 43000.

American jobs wouldn't make it yeah.

I think that's probably right I mean have you tax something you get lots of it right and so you're going to have a reduction in the amount of -- innovation that goes on and medical device and by the way these new tax also apply to drugs and vaccines and our other pharmaceutical product.

But I would make -- a broader case here.

-- I don't think the real cost of this is so much and lost jobs although -- will -- jobs I think the problem with this is that you know the United States of America is what leads the world all the medical innovation lifesaving wonder -- most of them come the United States all of the new medical devices that that also are critical terms of treating people with -- chronic diseases.

Reducing.

The amount of pain and suffering.

All of those things are going to be a shorter supply right now we're gonna reduce the amount of innovation that means the kind of cures for things from like heart disease and cancer or multiple sclerosis I think we're gonna delayed adulthood has deteriorated at a higher taxes -- -- here's the other Saturday they say the -- millions of new customers because of the law.

And those new customers and -- drive your business higher because if you buy it.

Me and others there's some something to that you know we put a lot of people on these government program so there'll be some -- but the problem.

When I talk to people in the in the industry.

What they're worried about is not just these new taxes but they -- the next thing that's coming bell.

If price controls that backed out there there will be federal regulations on how much they can charge for these kinds of things.

And that that also leads the last innovation in the midst of this industry you know if you look at the major kinds of innovations that -- happened and and not a cent over the last twenty or thirty years.

About 75 to 80% of them.

Have have been invented the United States of America it's one of the areas we have the greatest competitive badge and I hate to see that being volusia you know -- Two days ago senator Bob Casey Democrat from and so they didn't and sixteen other Democrats who voted for the Affordable Care Act.

Are asking for this -- he's -- this tax -- beat postpone.

You know what -- I.

I think there's a good chance that that will happen because you have virtually all the Republicans are against these innovation -- -- -- -- agreed to at the beginning that.

Well because I don't think they're really understood that the real ramifications.

Of that spell and you know as -- whereas with everything Washington we don't solve a bit -- or.

You know right up it gets the precipice of the club and I think that will happen with this -- They had a vote on this I think it was last summer a few months -- golf.

And it came close to overturning the building didn't have quite enough boats but I actually think you're on the southern -- I think they may actually overturn on this sometime in early 2000 pursue whatever -- little shows a real results and he got up passive you know -- hit it.

Thanks Steve Stephen Moore right Wall Street Journal -- -- I don't that you two hammered foxnews.com -- the email.

Also -- -- -- tweets on Twitter at Bill Hemmer because US beat Y day thank you Steve Moore.

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