Corbett’s Medicaid Decision Could Save Jobs

The Affordable Care Act—often dubbed Obamacare—included 20 new taxes or tax increases. As these taxes are beginning to go into effect, businesses are starting to feel the impact, and legislators are reacting.

Members of Congress from both sides of the aisle are pushing for a repeal of the new “medical devices tax”—including Senators Pat Toomey (R) and Bob Casey (D) and several members of Pennsylvania’s House delegation.

Why? The new tax is forcing manufacturers to weigh cutting jobs in order to pay the burden. The Patriot News reports:

Pennsylvania is home to several medical device firms, including Aesculap, Boas Surgical, Biomed, B. Braun, Olympus, Orasure and Precision Medical Instruments. The Patriot-News was unable to reach representatives at some of these firms in time for publication of this report.

Massachusetts-based Boston Scientific last week announced it would cut between 900 and 1,000 jobs, partly as a result of the tax.

The medical devices tax is projected to suck $20 to $30 billion out of the economy over the next decade to pay for some of the Obamacare spending provisions.

Curiously enough, that tax hike parallels the costs of expanding Medicaid in Pennsylvania—with estimates ranging from $21 billion over eight years to $41 billion over 10 years.

Thus, by refusing to expand Medicaid in his budget, Gov. Tom Corbett will save taxpayers not only at the state level, but make it possible for Congress to repeal a job-killing tax hike without growing the deficit.