Medical Excise Tax on Retail Receipts Show How We’re Screwed by Obamacare

An Infowars reader sent along an image of a sales receipt from Cabela’s, a popular sporting goods store.

The receipt (pictured at left) spells out what Obama and the feds want to keep secret – the middle class is being heavily taxed despite all the fatuous rhetoric of Democrats who invariably play the class warfare card to sell their confiscatory taxation policies.

“The 2.3% Medical Excise Tax that began on January 1st is supposed to be ‘hidden’ from the consumer, but it’s been brought to the public’s attention by hunting and fishing store Cabela’s who have refused to hide it and are showing it as a separate line item tax on their receipts,” the email states.

Source



Now please hold on and bare with me before you say "OH, another Alex Jones article!" because I did some research and found directly from the IRS's website information that PROVES this to be true and an accurate portrayal of something hidden in Obamacare that I was not aware of!

Now being sceptical of this I went to the IRS website and found this!

Q1. What is the medical device excise tax?

A1. Section 4191 of the Internal Revenue Code imposes an excise tax on the sale of certain medical devices by the manufacturer or importer of the device.

Q2. When does the tax go into effect?

A2. The tax applies to sales of taxable medical devices after Dec. 31, 2012.

Q3. How much is the tax?

A3. The tax is 2.3 percent of the sale price of the taxable medical device. See Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information on the determination of sale price.

IRS.gov

So being more curious I clicked on "Chapter 5 of IRS Publication 510" And WALLAH! What do I find under "MEDICAL DEVICES" under "MANUFACTURERS TAXES"?

Manufacturers Taxes
The following discussion of manufacturers taxes applies to the tax on:
Sport fishing equipment;
Fishing rods and fishing poles;
Electric outboard motors;
Fishing tackle boxes;
Bows, quivers, broadheads, and points;
Arrow shafts;
Coal;
Taxable tires;
Gas guzzler automobiles; and
Vaccines.

IRS.gov

I think we have definately been fooled, if we believe that the Affordable Care Act is all about health care. It truely does appear to be nothing more than a bill laden with a whole lot of taxes that we the people have yet to be aware of!

We can't say they didn't warn us.

We have to pass the health care bill so that you can find out what is in it -Nancy Pelosi

Our own Government did a 'Bait and Switch' on us.

Originally posted by seeker1963

Q3. How much is the tax?

A3. The tax is 2.3 percent of the sale price of the taxable medical device. See Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information on the determination of sale price.

IRS.gov

So being more curious I clicked on "Chapter 5 of IRS Publication 510" And WALLAH! What do I find under "MEDICAL DEVICES" under "MANUFACTURERS TAXES"?

Manufacturers Taxes
The following discussion of manufacturers taxes applies to the tax on:
Sport fishing equipment;
Fishing rods and fishing poles;
Electric outboard motors;
Fishing tackle boxes;
Bows, quivers, broadheads, and points;
Arrow shafts;
Coal;
Taxable tires;
Gas guzzler automobiles; and
Vaccines.

IRS.gov

you have misread the answer and the reference - the answer says see that section "for additional information on the determination of sale price" - not for a list of what constitutes a medical device.

The section on medical devices reads, in total:

Medical device excise tax.The Act imposes a 2.3 percent excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. The tax applies to sales of taxable medical devices after December 31, 2012.

and later on under sporting goods it has some definitions of what gets included in the definition of "sale price" and what does not.

If this is true, it gives me one more reason to buy as little consumer goods as humanly possible. I can make an extra $20,000 a year selling retail items to my clients. I don't bother as collecting tax, quarterly filings and getting generally yanked off by the California Franchise Tax Board is simply not worth it.

Screw this Government.

You're not being screwed by "Obamacare," you're being screwed by those who think it's fair to pay their employees a pittance and pass any new operating costs down to the consumer.

Why is this a 'Democrat' thing? I presume both sides passed the bill.

And as an aside, if you don't want to pay this particular tax, you can avoid buying those kind of items. And I'm sure there would be no tax if you bought these same items off private parties.

Maybe people who buy things that are dangerous to health (i.e. cigarettes, candy, alcohol, bullets) should pay taxes to help mop up the health damage those things cause, in the same way trucking companies pay taxes to help cover the damage heavy trucks cause to roadways, and homeowners pay taxes to provide schools and infrastructure to their local communities.

reply to post by Aloysius the Gaul


Then why does my second link, (first IRS link that has questions for medical device taxes) lead me to the second link which describes fishing equipment, bows and arrows, coal, and vaccines?

Are you purposely being obtuse or just trying to argue?

Don't you think it is strange that my research which started with the original piece and an actual photo of a receipt with the term "medical excise tax" and the info directly from the IRS website kinda proves my theory correct? Hell, it isn't even a theory at this point, it is a fact!

Now what the heck does this tax on fishing gear have to do with medical devices? I doubt if the money from that tax even goes to the healthcare money, it will be implemented to pay something in healthcare that the government no longer gets from the general fund and then they can keep blowing more money on their Pork. They should implement a tax on pork barrel projects, they would quickly pay off the national debt that way

reply to post by rickymouse

Now what the heck does this tax on fishing gear have to do with medical devices? I doubt if the money from that tax even goes to the healthcare money, it will be implemented to pay something in healthcare that the government no longer gets from the general fund and then they can keep blowing more money on their Pork. They should implement a tax on pork barrel projects, they would quickly pay off the national debt that way

Exactly! Kinda like how past administrations used the Social Security Trust Fund to steal over 2 Trillion dollars from it?

reply to post by rickymouse


They should have a tax on legislation. They should charge by the word and make the person who wrote the legislation responsible for paying the tax!!

Originally posted by ShadeWolf
You're not being screwed by "Obamacare," you're being screwed by those who think it's fair to pay their employees a pittance and pass any new operating costs down to the consumer.

Spoken like a person that takes a paycheck from someone else for a living..... I own a business and I pay MORE than the going rate for what we do, about a 1/3rd more as I value good people. This being a difficult economy I am already working on margins that don't have much more room to fall. So if you think I can do anything besides pass that extra tax on to the consumer, you truly don't know how business works.

Simple research will show that this is an error on the stores part.
www.snopes.com...

Cabela's has even released a statement about it.

companywide glitch in Cabela’s cash register system that added a 2.3 percent “Medical Excise Tax” to customers’ purchases — everything from boots to bullets — was an error and will be refunded, a company spokesman said Monday.

The error was discovered last week after consumers in several states notified the company that the surcharge appeared on their sales receipt and had been applied to all of their purchases.

It was a glitch in the system,” said Cabela’s spokesman Joe Arterburn.

The error was limited to transactions that occurred Jan. 1 and was caught that same day by the Sidney-based hunting and outdoor outfitter.

So no, you aren't going to see a new tax...the tax in the healthcare reform bill is on the MANUFACTURERS...not the customers.

The Healthcare Bill is unconstitutional. Any Bill that has that many tax's has to start in the House. When SCOTUS ruled that the mandate to buy it was a tax, it should have been thrown out. It will suck America dry. It was supposedly to make Healthcare affordable to everyone. Instead it makes everyone poor. .Those people who were planning to be doctors will become lawyers instead. Isn't that just wonderful. A country with triple the number of lawyers we have now.

reply to post by xedocodex


And do you think those taxes won't be passed on to the consumer?

Originally posted by ShadeWolf
You're not being screwed by "Obamacare," you're being screwed by those who think it's fair to pay their employees a pittance and pass any new operating costs down to the consumer.

Since when are complanies in business to pay money? ALL costs get passed down to the consumer...plus some. That's called PROFIT.

reply to post by xedocodex

Cabela's has even released a statement about it.

So what does health care have to do with raising taxes on manufacturers of fishing poles and fishing equipment as well as bow and arrows and coal????

Your own post....it is about taxing the manufacturers.........

Your condecending attitude still fails to show how your saviors health care bill has anything to do with taxing sporting goods manufacturers!

Mistake or Warning, take it as you will.

Originally posted by signalfire
Why is this a 'Democrat' thing?

I seriously can't believe you just said that...

Originally posted by seeker1963
reply to post by Aloysius the Gaul

 

Then why does my second link, (first IRS link that has questions for medical device taxes) lead me to the second link which describes fishing equipment, bows and arrows, coal, and vaccines?

Because that document contains information abvout what constitutes "sale price" - the tax is ont the "sale price" so yuo need to know what that means.

Are you purposely being obtuse or just trying to argue?

I told you what it was for in my original post - I am sorry you could not understand it.

Don't you think it is strange that my research which started with the original piece and an actual photo of a receipt with the term "medical excise tax" and the info directly from the IRS website kinda proves my theory correct? Hell, it isn't even a theory at this point, it is a fact!

Certainly it is a fact that the tax exists - who ever said otehrwise??

What you got wrong is that all that sporting equipment is somehow "medical equipment"

reply to post by Aloysius the Gaul

What you got wrong is that all that sporting equipment is somehow "medical equipment"

How did I get it wrong? I took my evidence right from the IRS website and their links!

A3. The tax is 2.3 percent of the sale price of the taxable medical device. See Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information on the determination of sale price

Notice "See Chapter 5 of IRS Publication 510"?

If you would have clicked on the link in my original OP, you would have seen what Chapter 5 entails!

Before you answer, I got this from a Q&A on "Medical Device Excise Tax: Frequently Asked Questions"??????

Originally posted by timetothink
reply to post by xedocodex

 

And do you think those taxes won't be passed on to the consumer?

They may very well be passed on to the consumer, but in the form of higher prices...not taxes.