EXCISE TAXES
Medical device firms are now feeling the pain
As part of the Affordable Care Act, a 2.3 percent excise tax on medical devices took effect on Jan. 1. This is not a tax on profits, but a tax on revenues. Even if a medical technology company has significant losses, it is still subject to the tax. This is especially relevant to Minnesota, which has the largest per capita medical technology industry in the country.
Minnesota companies such as Medtronic, St. Jude Medical, Boston Scientific and numerous startups will likely fund the tax through a decrease in research and layoffs. A number of Minnesota jobs are at risk, as the state has approximately 35,000 medical device jobs and more than 100,000 indirect supporting jobs.
Our U.S. senators, Al Franken and Amy Klobuchar, voted for this tax with their yes votes on the ACA, but they are currently attempting to have the provision reversed. I hope they are successful, but I have to ask why they supported it in the first place with their support for the ACA.
JIM RIPPLE, MINNEAPOLIS
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GOV. MARK DAYTON
A populist who's never had to make ends meet
How unfortunate it is that Minnesota has a rich heir as governor. Gov. Mark Dayton not only is a populist, but he's also never had to live within limited resources. Dayton does sincerely care about the less fortunate, but ultimately spending more and taxing more will make our state less competitive. Future generations of working-age Minnesotans will suffer because of fewer job opportunities and more state-subsidized obligations. Business and high-income earners will eventually flee our state, as is now happening in California.
The answer is to continue to make government more efficient, take care of those who really need help, eliminate subsidies and handouts that are not a true function of state government, and create a tax structure that encourages, rather than discourages, business and high-income earners to support Minnesota.
I am about to turn 80, and my wife and I will remain Minnesota residents. My business, which now operates in another state, could not survive the anti-business sentiment in Minnesota 20 years ago. The business climate in Minnesota has improved in the last 20 years, but many of those gains will be lost if Dayton's tax-and-spend proposals become law.