Obamacare..

[ZARA]

Did you know this:

Affordable Care Act Tax Provisions
Medical Device Excise Tax

On Dec. 5, 2012, the IRS and the Department of the Treasury issued final regulations on the new 2.3-percent medical device excise tax (IRC §4191) that manufacturers and importers will pay on their sales of certain medical devices starting in 2013. On Dec. 5, 2012, the IRS and the Department of the Treasury also issued Notice 2012-77, which provides interim guidance on certain issues related to the medical device excise tax. Additional information is available on the Medical Device Excise Tax page and Medical Device Excise Tax FAQs on IRS.gov.

Medical Device Excise Tax: Frequently Asked Questions
Medical Device Excise Tax: Frequently Asked Questions

Q1. What is the medical device excise tax?

A1. Section 4191 of the Internal Revenue Code imposes an excise tax on the sale of certain medical devices by the manufacturer or importer of the device.

Q2. When does the tax go into effect?

A2. The tax applies to sales of taxable medical devices after Dec. 31, 2012.

Q3. How much is the tax?

A3. The tax is 2.3 percent of the sale price of the taxable medical device. See Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information on the determination of sale price.

snopes.com: Medical Device Excise Tax

Do a Google image search for "cabela's Medical Device Excise Tax"

You will see.

 

[Tilted]

Yeah, that was a mistake Cabela's made. For one thing, the tax doesn't apply to those kinds of things. For another, it doesn't apply to the retail price, it applies to the wholesale price (for lack of a better term). It's also paid by the manufacturer or importer, which means that it wouldn't be added on top of the retail price (even for qualifying items which get sold at retail). The tax would affect the retail price, I'm not suggesting otherwise; but it would already be included in the price the retailer paid for the item - it wouldn't be billed to the consumer.

 

[GURPS]

... but it would already be included in the price the retailer paid for the item - it wouldn't be billed to the consumer.

yeah the Retailer is not going to raise the prices accordingly and just EAT the TAX

sure .... do you want to by this Bridge I have for Sale

 

[Tilted]

yeah the Retailer is not going to raise the prices accordingly and just EAT the TAX

sure .... do you want to by this Bridge I have for Sale

Yeah, it's like the many other manufacturers excise taxes in that way. It's billed to the manufacturer at the wholesale level, and it affects the price the retailer pays and thus (or possibly, depending on the circumstances) the price that the end consumer pays. But it isn't billed as a separate charge to the consumer. If a seller tacks on an extra charge, above the advertised retail price, that seller is defrauding the customer (or just temporarily making a mistake). I suppose they could indicate on the signage that a certain portion of the advertised retail price reflects an excise tax that was applied earlier, I don't think that would be a problem.

And just to be clear, the excise tax we're talking about doesn't apply (even at the wholesale level) to the kinds of items Cabela's was apparently mistakenly applying it to. It isn't supposed to apply to the types of things that are typically bought at retail by the public for individual use. It applies to things like MRI machines and pacemakers that doctors implant in patients, it doesn't apply to shoes.

There is however a manufacturers excise tax (separate from the medical devices excise tax) that applies to various fishing equipment (e.g. rods, line, hooks, tackle boxes) and another that applies to various archery equipment (e.g. bows, quivers, arrows). I wonder if Cabela's ever tried to add an extra retail tax on top of the retail price (which already reflects these excise taxes) for those kinds of items (and labeled it as 'sport fishing excise tax' or 'bows and arrows excise tax')?

 

[GURPS]

I understand completely ....
.... mine was a general comment on taxes in general


Gov Drones [read Congress] dreams up some new revenue stream on a business, and lies to themselves that Consumers will not be AFFECTED we are taxing the business service or products

 

[ZARA]

Yeah, that was a mistake Cabela's made. For one thing, the tax doesn't apply to those kinds of things. For another, it doesn't apply to the retail price, it applies to the wholesale price (for lack of a better term). It's also paid by the manufacturer or importer, which means that it wouldn't be added on top of the retail price (even for qualifying items which get sold at retail). The tax would affect the retail price, I'm not suggesting otherwise; but it would already be included in the price the retailer paid for the item - it wouldn't be billed to the consumer.

I made it to page 5 and said F*it.

http://www.gpo.gov/fdsys/pkg/FR-2012-12-07/pdf/2012-29628.pdf

Here is the "Guidelines."
http://www.irs.gov/pub/irs-drop/n-12-77.pdf

My brain is fried now.

 

[Tilted]

I made it to page 5 and said F*it.

http://www.gpo.gov/fdsys/pkg/FR-2012-12-07/pdf/2012-29628.pdf

Here is the "Guidelines."
http://www.irs.gov/pub/irs-drop/n-12-77.pdf

My brain is fried now.

I think the further insight into what the tax would or wouldn't apply to starts on page 10 of the first pdf with Section 8.4191–2. And by further insight I mean greater clarity. And by greater clarity I mean more specificity and, well, greater confusion.

It's usually best to start with the statutory language itself if you're looking to understand what it does or might do (or is intended to do), and then move on to the regulations formulated based on that statutory language to the extent more insight is needed (and to the extent one is willing to wade through those regulations).

Here's the main piece of the medical devices excise tax code created by the PPACA: 26 USC § 4191. It's pretty short.

The "section 201(h)" referred to by § 4191 is 21 USC § 321(h).

But seriously, give your brain a rest on this one - especially if you've already fried it.