Audit: 'Obamacare' tax not meeting revenue target

The government says a tax on medical devices isn’t being paid. Congress enacted a 2.3 percent tax on the sale of medical devices such as pacemakers and CT scan machines. Instead of the $1.2 billion thought it would collect, it has seen only $913 million. (Getty Images)
medical scan (File) (Getty Images)
Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Share
Updated: 8/19 1:08 pm

WASHINGTON (AP) — A government audit says a new tax on medical devices is falling short of its revenue target because thousands of companies aren't paying it.

The audit by the Treasury inspector general for tax administration says the Internal Revenue Service needs to do a better job policing the tax.

To help pay for the Affordable Care Act, Congress enacted a 2.3 percent tax on the sale of medical devices used chiefly by doctors and hospitals, such as pacemakers and CT scan machines.

The tax took effect in January 2013. For the first six months of that year, the IRS estimated it would collect $1.2 billion from the tax.

The audit said the IRS collected only $913 million — 24 percent less than the estimate.

 

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Share
NEWSCASTS ON DEMAND

What's On

All content © Copyright 2014 Intermountain West Communications Company. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.
You may also view our Sitemap

Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.