Tuning up the Wisconsin job killer

We’re guessing relatively few who voted to re-elect Barack Obama can articulate a motivation that stands up to logical scrutiny. Those who reside in Wisconsin have a special reason to be ashamed.

A week ago today, the Internal Revenue Service finalized its rules for implementing a new tax that targets an industry significantly concentrated in Wisconsin and making products essential to the American quality of life.

It’s the new 2.3 percent tax on medical devices, supposedly to help finance the government health care takeover. That’s not 2.3 percent of profits, by the way; it’s 2.3 percent of gross sales. If a company has a very small profit margin, say 2 percent, the tax will confiscate its earnings and a little more. If a company is just breaking even and makes the mistake of selling any products, it’s immediately going in the red.

Many Wisconsin employers are in line for this Obamacare looting; an abundance of precision and high-tech manufacturing makes the state a target-rich environment. GE Medical Systems is an obvious example, but even a cursory, ten-minute search identified additional medical device manufacturers in Menomonie, De Forest, Waukesha, Clear lake, Chippewa Falls, Madison, Milwaukee, Menominee Falls, Grantsburg, Port Washington, Sussex, Clayton, Fort Atkinson, and Grafton.

Too often business pleads for “regulatory certainty” rather than challenge the premise of regulation. At least Mark Leahey, CEO of the Medical Device Manufacturer’s Association, doesn’t buy the “certainty” excuse, saying the finalized IRS rule “does nothing to prevent the loss of jobs and innovation that has already occurred as a result of the medical device tax, and will unfortunately continue if we do not repeal this bad policy.”

No repeal is in sight for a bad policy enabled, unwittingly, no doubt, by 52.8 percent of Wisconsin voters.

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About Wisconsin Club for Growth
The Club for Growth is a national network of over 40,000 men and women, from all walks of life, who believe that prosperity and opportunity come through economic freedom. Wisconsin Club for Growth, Inc. is dedicated to informing, educating and rallying citizens of Wisconsin to embrace and enact policies that lead to sustained economic growth, limited government, and minimal taxation. Wisconsin Club for Growth can and will have an enormous impact on the direction of our state. Wisconsin Club for Growth believes that effective lobbying is done at all stages of the budget cycle, including when our leaders make public promises and can be encouraged to support policies that spur economic growth. Wisconsin Club for Growth believes we must support pro-growth policies and encourage public officials with backbones to remain truly committed to making our economy and our state stronger. Wisconsin Club for Growth believes our leaders must stand up to the tax and spend mentality in Madison and work tirelessly to cut taxes and unleash the power of the free-market.

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