Republicans and Democrats have lost all sense of creative ownership and property rights. I was reading an article in Tuesday’s St. Paul Pioneer Press, about the Bipartisan effort to stop the tax penalties that are going to be imposed on Medical Technology manufacturer's. While I agree with their goals, I was absolutely floored by the arguments for and against it.
The companies, whose products range from $3,000 heart stents to $30,000 implantable defibrillators, refused to offer direct financial concessions this year to help pay for health care reform, unlike drug makers, hospitals and other health care players.
Greedy Fatcats!
The move angered Democrats on the Senate Finance Committee, who view the industry as a key contributor to soaring health care costs, and led the panel to approve a $40 billion fee on device makers over the next 10 years.
Adding to expenses by creating insanely advanced medical equipment, how dare they!
The article goes on to point out that there is an “unlikely alliance” between liberal and conservative members of the government because of large lobbying and political donations on the part of the companies in question (Specifically Medtronic, St. Jude Medical and Boston Scientific). Which is not surprising, as politicians are always acting in their own self-interest. The issue has brought together the likes of Al Franken and Amy Klobuchaur with conservative Republicans, in effort to reduce or eliminate the tax. That would be the smart move, and some of their reasoning is sound. Not only will the tax cause a huge reduction of jobs in these companies, it will also limit the amount of product and future innovation in these fields. These are products that save the lives of many, and increase the standard of living fof many more.
"The issue here is that these are very good jobs in our state and in our country," Klobuchar said. "You want to be very careful when you start assessing taxes on an industry like this."
Well said Senator, although I would say that about taxes on every industry. I would bet that the issue from her standpoint is more about Minnesota tax revenue and political pressure, but who am I to say?
While I found the article to be written from an extremely liberal perspective (shocking); I also found it funny that between Al Franken, Amy Klobuchar, and Republican Congressmen Erik Paulsen; not one of them mentions the fact that these products are created and owned by private companies and investors. They are the sole property of the people who took the chances necessary to make their ideas a reality.
Where do we as a country find the right to punish the success of these companies through progressive taxation? The materials and resources that are required to create new medical devices are not just something found lying around for anyone to take. They are the creation of people who have invested their time, money, and resources in hopes helping other people. And yes, they happened to have made money doing it. But what is wrong with that? The medical advances produced would not exist without their work. Investors take significant risks financially in unknown technologies. When they succeed, we all benefit from the product. How are we to go about claiming any part of their profits when we had no part in the risks and effort that made it possible for these devices to come to the market?
Boston Scientific CEO Ray Elliott stated: "We kiss a lot of frogs before we get to the prince," Elliott said. "If we didn't fix people's hips and knees, we'd all be in wheelchairs."
But I think Ayn Rand said it best, and I’ll leave on her note.
“Any material element or resource which, in order to become of use or value to men, requires the application of human knowledge and effort, should be private property - by the right of those who apply the knowledge and effort. These items are produced by human action and do not exist without it. What exists in nature is only the potential. Without the mind that generates production – on our present level of knowledge – these materials are of no practical use or value to anyone.”
Why would they "chip" in? After the government socializes health care, their willingness to pay for each individual needs, and the expense of certain operations, will become too expensive, and in the end, the same company making the devices, will sell less for the socialized medicine.
ReplyDeleteThat's what so ridiculous about all the other organizations trying to get in on all this. They are billion dollar companies begging the government for a seat at the table. But when you get into a group that has actually taken real risk, and requires real intelligence in its manufacturing they put their foot down.
ReplyDeleteIt reminds me of what we talked about this week when government takes over private business. They aren't looking to limit profits. They are looking for a way to take the profits.
This is such a clear cut issue of "The Goose that lays the golden eggs"
ReplyDeleteHere you have a multibillion dollar industry that has earned every penny by developing life saving tools that have made the world a better place for everyone in the world.
So what to does the farm do? "Fuck that, I want ALL the eggs now!" and cuts open his goose...
The blade is to the goose as we speak, and our crazy farmer is about to finish the tale...