In an op-ed for the ages in the Massachusetts Medical Devices Journal this week, Ms. Warren came out against ObamaCare’s 2.3% excise tax on medical device manufacturers that kicks in next year. Such a levy has no place in a “fair tax system,” she says, and she favors repeal. Ms. Warren even uses that word, repeal, which in the context of government health care might raise an eyebrow or two on Boston Common or whatever park her followers are occupying these days.
When “Congress taxes the sale of a specific product,” Ms. Warren explains, “it too often disproportionately impacts the small companies with the narrowest financial margins and the broadest innovative potential.” She adds that in the medical devices case such taxation “pushes companies of all sizes to cut back on research and development for life-saving products.”
The WSJ Editorialists wonder:
So Ms. Warren is conceding that when the government taxes something we get less of it, though you’d have to be a Harvard faculty member to believe otherwise. But how come she thinks this insight only applies to innovative medical devices and not to, say, investment or even other boring old businesses?