gut;968101 wrote:Taxes aren't normally a justifiable reason for cutting jobs. Companies are always looking for efficiencies and likely would make those cuts regardless of the tax increase or not. Where it has an impact is where companies have the ability they will pass the tax increase onto their customers. Now where taxes do hurt is in investment - it raised the ROI required vs investment alternatives that aren't impacted by that tax increase. And that's how the govt helps/hurts (rather ineptly) the flows of capital to different sectors via tax policy.
For a large percentage, joint replacements are considered elective type surgeries. I'm certain there are also minimal healthcare plans that don't cover joint replacements unless they are life-threatening. You are correct in that they would pass the tax along with their cost of the parts. This is the problem to which the article and 'Oats are referencing.
In essence, the reason they are cutting back now is that they see less demand for their products. They are making an economic observation (and subsequent decision) that their market share will shrink as they anticipate less joint replacements upcoming. Why are they anticipating less demand?....ObamaKare's tax. Typical Statist horseshit: They don't believe changing the tax code will affect market behaviors.
For an old example, remember the vaunted "Luxury Tax", that was designed to make millionaires pay for their largesse when they purchase diamonds, yachts, and the like? The Statists thought it was a winner in the class-warfare game. What happened there? Did the millionaires just pony-up the extra taxes? Or did they find other ways of getting their material possessions through foreign purchasers? What happened to the employment of yacht-builders in the good 'ol USA? Did the tax therefore create growth in the USA and spur job creation...or, as always with Statist's tax schemes, did it have the exact OPPPOSITE effect and reduced growth and chased jobs overseas?
Next thing ya know, these elitist wizards will find a way to tax Christmas trees....