Health Care Bill Creates Federal Sales Tax

Thursday, March 25th, 2010

 
 
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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.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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