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  1. Tweets that mention » Josh Makower, Stanford Biodesign, on Medical Innovation and What’s Wrong with the FDA - DiabetesMine: the all things diabetes blog -- Topsy.com

    [...] This post was mentioned on Twitter by DiabetesMine, joseph flaherty. joseph flaherty said: Must read article on medical device innovation Tech/#Gov20/Biz implications http://bit.ly/hZc3a5 CC: @timoreilly @shelleypetersen @ahier [...]

  2. Michael Ratrie
    Michael Ratrie December 21, 2010 at 11:05 am | | Reply

    I think I am confused on the Medical Device Tax, Amy. The link you provided says it is an excise tax of 2.3%.

    So how does this type of tax stifle innovation regardless of whether or not the manufacturer is profitable? Every manufacturer has to pay the excise tax and the tax only applies when the device is sold (like sales tax), so my logic (strange as it may sometimes seem), says the end-users will pay the tax. Sure there is going to be some administrative expense to get the tax paid by the consumer to the government, but that’s got to be pretty minor.

    It’s kind of like tires (tyres for your English readers). There is an excise tax on every tire sold in the US. Doesn’t matter if it’s a tire made by GoodYear or the new innovative unprofitable “eco-Tire” company, the tax is due and passed on to the consumer.

    Confused,
    Mike

  3. Michael Ratrie
    Michael Ratrie December 22, 2010 at 8:49 pm | | Reply

    Amy,

    I have seen the “arguments” against the excise tax, but do they really stand up to scrutiny? Again, if it is a pass-through tax to consumers and all manufacturers have to pay it (therefore a predictable, level playing field), then how do the arguments stand-up?

    Still confused,
    Mike

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