New Tax?

[Wizard]

Guys, I haven't ordered fishing gear on-line in over 5 years. My old SOS pfd vest deteriorated with age and Cabela's had one on sale. Their 3500 Tournament auto/manual vest was on sale for $89.99 with the list price being $149. A good deal. As I was reviewing the order I noticed a $5.07 medical excise tax on my purchase. I called Cabela's and asked what it was. It is a tax to pay for Obamacare. The tax is on all  fishing and hunting gear bought on-line. I'll post this thread without comment.

[cortman]

Didn't I see this on Snopes a while back...

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[merc1997]

i have said this once before and i will say it again.  fishing tackle manufactures that manufacture in the usa, pay a ten percent excise tax on all sales, and that is right off the top, and it is attached to obamacare.  so, all that bs about there is not tax for flapearscare is bs itself.

bo

[Tavery5]

A few things weird about the original post.  1.) medical excise tax is 2.3% and is not a tax on the consumer but on the manufacturer.  2.3% of 89.99 is 2.07  not sure where the 5.07 comes into play.

  2.)The Consolidated Appropriations Act, 2016 (Pub. L. 114-113), signed into law on Dec. 18, 2015, includes a two year moratorium on the medical device excise tax imposed by Internal Revenue Code section 4191.  Thus, the medical device excise tax does not apply to the sale of a taxable medical device by the manufacturer, producer, or importer of the device during the period beginning on Jan. 1, 2016, and ending on Dec. 31, 2017.

3.)The text of the legislation states that the roster of "taxable medical devices" does not include "eyeglasses, contact lenses, hearing aids, and any other medical device determined to be of a type that is generally purchased by the general public at retail for individual use."

3a.)A device will be considered to be of a type generally purchased by the general public at retail for individual use if it is regularly available for purchase and use by individual consumers who are not medical professionals, and if the design of the device demonstrates that it is not primarily intended for use in a medical institution or office or by a medical professional.

Something fishy going on here.

[Wizard]

Only thing fishy is I didn't know what to call the tax. It doesn't say on the order other than that it is medical. A poor choice of words on my part. My apology.

[Oldfart9999]

Is anybody sure there were no taxes put on recreational products, it wouldn't surprise me.
Rodney

[Tavery5]

Only thing fishy is I didn't know what to call the tax. It doesn't say on the order other than that it is medical. A poor choice of words on my part. My apology.

My fishy statement was not aimed at you Wiz but more at what the hell is Cabelas doing.   They have already been identified several years back for charging this tax inappropriately.   

As mentioned there is an article on Snopes about this.