Think About It……… October 16, 2013
This week we received and email that we did not like at all. The email included an image of a sales receipt from Cabela’s, a popular sporting goods store with over 50 locations throughout the U.S. The image shows a medical excise tax added to the purchase price of the sporting goods purchased.
A medical excise tax on sporting goods??? You have got to be kidding!
Research found directly on the IRS’s website information proves the email to be true and an accurate portrayal of something hidden in the Obamacare directive that you are probably not aware of at all. The 2.3% Medical Excise Tax that began on January 1st of this year is supposed to be hidden from the consumer.
According to the email the hidden medical excise tax is now known because Cabela’s refused to hide it and began showing it as a separate line item tax on all their receipts. However, being skeptical of this we went to the IRS website and found this!
Question: What is the medical device excise tax?
Answer: Section 4191 of the Internal Revenue Code imposes an excise tax on the sale of certain medical devises by the manufacturer or importer of the device.
Question: When does the tax go into effect?
Answer: The Tax applies to sales of taxable medical devices after Dec. 31, 2012.
Question: How much is the tax?
Answer: The Tax is 2.3% of the sale price of the taxable medical device. See Chapter 5 of the IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information.
So, being curious we clicked on “Chapter 5 of IRS Publication 510. And what did we find under “Medical Devices” under “Manufacturers Taxes”?
The following discussion of manufacturers taxes applies to the tax on:
Sport fishing equipment
Fishing rods and fishing poles
Electric outboard motors
Fishing tackle boxes
Bows, quivers, broad-heads, and points
Gas guzzler automobiles and
Who would have ever dreamed that a tire is a medical device? You’ll find the IRS web site addresses listed on radiokenai.com under this week’s editorial.
I think we have definitely been fooled, if we believe that the Affordable Care Act is all about health care. It truly does appear to nothing more than a bill laden with a whole lot of hidden taxes that we the people are as yet unaware of.
But then, its certainly no surprise. It’s just like Nancy Pelosi said, “We have to pass it to see what is in it.”
Think About It! John C. Davis 10-16-13