Whatever your thoughts on the health care plan legislation that passed recently, everyone has to agree that it will cost money; Estimated at $950 billion over a ten year period.
While there are several provisions that account for raising these funds, the excise tax on Medical Device Manufacturers and Pharmaceutical Industry represents a significant change in the U.S. tax landscape. Historically, sales tax was imposed and collected at the state level. With the exception of cross border transactions (international and interstate), the federal government left collection and imposition of sales tax for the states. "The Health Care Law changes all that..."
Starting For sales that occur after December 31, 2010, a Federal Level Sales Tax will apply at a rate of 2.9% on all Medical Device sales in the U.S.