Who couldn’t see this coming? A company that built the wealth inherited by one of the biggest Democrat donors in the country is now laying off 5% of its staff because of the Obamacare Medical Device Excise Tax.
The fortune of Pat Stryker — Colorado Democrats’ personal sugar momma — comes from the Stryker Corporation, a company started by her grandfather that specializes in medical equipment. Stryker has used that money to spend millions propping up liberal attack groups and make extensive donations to Democrats.
Now that political advocacy is wreaking havoc on the company that created her fortune.
Reports Michigan Live:
KALAMAZOO — Stryker Corp.'s plans to layoff about 5 percent of its worldwide staff to cut costs — a move announced by the medical products company last Thursday — have some worried about the spin-off effect it may have in the community.
…Stryker Chairman, President and CEO Stephen P. MacMillan said the decision was a result of “a challenging economic environment and a market slowdown in elective medical procedures,” as well as the need to prepare for the new tax.
The company said that it will look to cut its 20,036-person worldwide staff before the end of 2012 and restructure some of its operations in order to wring out about $100 million in pre-tax operating costs savings. It said it expects the Medical Device Excise Tax, which requires the makers of various medical devices to pay 2.3 percent of their gross U.S. revenues on such products beginning in 2013, to cost it about $150 million.
If Stryker does an across-the-board cut of its 2,250-person Kalamazoo-area workforce, about 112 local workers would lose their jobs. About 1,002 of its worldwide workforce would be cut. [Peak emphasis]
As the Boulder County Business Report detailed in May, the 2.3% Obamacare Medical Device Tax is weighing heavily on Colorado businesses that deal in medical equipment. Coming amid a stagnant economy — unemployment rose in Colorado in April and May — it couldn't be a less welcome change to struggling companies.
It's also not the only tax about to take effect. As we recounted last week, Obamacare is riddled with tax increases — there's something in there for everyone to hate, at all income levels.
It's unfortunate that Pat Stryker's political advocacy is killing jobs for hard working employees who weren't lucky enough to inherit a 10 figure fortune. And those on the left wonder why we denigrate limousine liberals…