Fw: WHAT???

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Bruce Mathews

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Sep 17, 2014, 11:06:52 AM9/17/14
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Who knew a fishing rod was a medical device?

CABELA'S
Medical Excise Tax on Retail Receipts?

This is an image of a sales receipt from Cabela's, a popular sporting goods store.


The 2.3% Medical Excise Tax that began on January 1st is supposed to be "hidden" from the consumer, but it's been brought to the public's attention by hunting and fishing store Cabela's who have refused to hide it and are showing it as a separate line item tax on their receipts, the email states.
 
I did some research and found directly from the IRS's website information that PROVES this to be true and an accurate portrayal of something hidden in Obamacare that I was not aware of! Now being skeptical of this I went to the IRS website and found this!
 
Q1. What is the medical device excise tax? A1. Section 4191 of the Internal Revenue Code imposes an excise tax on the sale of certain medical devices by the manufacturer or importer of the device.
 
Q2. When does the tax go into effect? A2. The tax applies to sales of taxable medical devices after Dec. 31, 2012.
 
Q3. How much is the tax? A3. The tax is 2.3 percent of the sale price of the taxable medical device. See Chapter 5 of IRS Publication 510, Excise Taxes, and Notice 2012-77 for additional information on the determination of sale price.  IRS.gov <http://irs.gov/> <http://irs.gov/> 
 
Chapter Five http://www.irs.gov/publications/p510/ch05.html <http://www.irs.gov/publications/p510/ch05.html> 

So being more curious I clicked on "Chapter 5 Of IRS Publication 510."

And what do I find under "MEDICAL DEVICES" under "MANUFACTURERS TAXES"?

The following discussion of manufacturers taxes

Applies to the tax on:

Sport fishing equipment;

Fishing rods and fishing poles;

Electric outboard motors;

Fishing tackle boxes;

Bows, quivers, broad heads, and points;

Arrow shafts;

Coal;

Taxable tires;

Gas guzzler automobiles;
 
and

Vaccines.
 
  

[ Political rant deleted ]

Anyone else heard about this? 

Just curious




ATT00001.jpg

Jeffrey Silvan

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Sep 17, 2014, 11:27:16 AM9/17/14
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I won't get into any of the political side here, but this email is misinterpreting tax code, spreading misinformation, and contains a doctored receipt. If you actually look at the tax code that the email links to (it's the IRS code on excise taxes), it has a section on "Manufacturer Taxes." This covers Medical Devices, Coal, tires, the Gas Guzzler Tax, and among others, taxes on Sport Fishing devices. The sport fishing section and medical device section are completely exclusive of one another, and neither section makes any reference of the other. The tax on sport fishing goods has been around for a while and is nothing new. It ranges from 3% to 10% depending on the item. Obviously the medical device section is a new tax associated with the Affordable Care Act, but again, that section makes absolutely no mention of fishing equipment.

The Cabela's image is a clearly doctored receipt. Why do you think it only lists totals and a tax, rather than showing the items purchased? Also, the tax charged works out to 2.08% assuming it's applied to every item on the receipt. Finally, the taxable event is when the item goes from the manufacturer to the buyer. Even when you buy a Cabela's brand item, it isn't actually manufactured by Cabela's. In those cases, the taxable transaction already occurred, and while they will pass the tax along to the consumer, they can't legally call it a tax being charged to the consumer since the consumer isn't paying the tax directly - they'd need to charge it as a tax fee or something along those lines.

Just goes to back up the old adage: Don't believe anything on the internet.


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Paul Kalajainen

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Sep 17, 2014, 11:30:17 AM9/17/14
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Jeff beat me to it, but here's an article that goes into more detail http://www.factcheck.org/2013/09/cabelas-medical-tax-mistake/

Short answer, it's not true.

Richard Farino

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Sep 17, 2014, 11:31:58 AM9/17/14
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You guys need to check Snopes.com when you see stuff like this - http://www.snopes.com/politics/taxes/medicaldevice.asp.  Cabela’s made a mistake and added items that were exempt from this excise tax.  This is a Cabela’s mistake, not an Affordable Health Care issue.

So you know, there is a 10% excise tax on all sport fishing related equipment, bows, quivers, broad heads and points, all thanks to the Dingell-Johnson act of 1950 (also known as Wallop-Breaux - http://www.fws.gov/laws/lawsdigest/FASPORT.HTML) that provides Federal aid to states for management and restoration of fish, aquatic education, wetlands restoration, boat safety, and clean vessel sanitation devices.

This 10% tax is levied on the manufacturers and passed on to the consumer.  You never see it added on your receipts because it’s built into the cost. Basically, when you buy any of these sporting goods, you are helping your resource.


R




Richard Farino

Urban Angler VA | 108 N. Washington Street  2nd Floor | Alexandria, VA 22314 Google_Maps_Marker

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Rob Snowhite

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Sep 17, 2014, 11:49:09 AM9/17/14
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On the subject of Cabelas, I'm headed to one soon. It's a small one but it's still a Cabela's! 



Sent from my iPhone

Bruce Mathews

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Sep 17, 2014, 2:32:12 PM9/17/14
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Guys, I apologize.  I should have looked further before I wasted the list's ether.   
 
Bruce Mathews
703.772.7167



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Richard Farino

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Sep 17, 2014, 2:49:38 PM9/17/14
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I wouldn’t say you wasted it.

What you SHOULD’VE asked is why Cabela’s is able to build a trophy wall and fish exhibit in the center of each of their stores, then get the state to stock it with mounts and live fish using state resources, and then are allowed to write off that entire exhibit in their tax returns as “public space”.


R




Richard Farino

Urban Angler VA | 108 N. Washington Street  2nd Floor | Alexandria, VA 22314 Google_Maps_Marker

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From: 'Bruce Mathews' via Tidal Potomac Fly Rodders <tidal-potoma...@googlegroups.com>
Reply-To: <tidal-potoma...@googlegroups.com>

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Mike

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Sep 17, 2014, 3:00:36 PM9/17/14
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What's to ask?  They are obviously not hiding it.

To view this discussion on the web visit https://groups.google.com/d/msgid/tidal-potomac-fly-rodders/D03F502F.62712%25richard%40urbanangler.com.

Richard Farino

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Sep 17, 2014, 3:11:49 PM9/17/14
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I dunno – you could ask why it’s okay that they save $4 million in property taxes each year because those exhibits in their stores are “public spaces” paid for by public taxes.



R



Richard Farino

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TurbineBlade

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Sep 17, 2014, 3:18:59 PM9/17/14
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I just wanted someone to pronounce "Dingell-Johnson" with a straight face.  I will never be mature enough to overlook something like, nor do I want to be.  

It's also a great name for a fly pattern -- though I'd change the spelling slightly.  

Gene
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Rob Snowhite

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Sep 17, 2014, 6:25:31 PM9/17/14
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Richie,

This is what the fish tanks are for at those big box stores:

http://www.youtube.com/watch?v=wODu-8J0SWY

namfos

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Sep 18, 2014, 9:18:05 AM9/18/14
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Jeff, you should work on the side for Snopes. ;-) I think this graphic offers some solid advice when it comes to "information" on the Web.
ben-franklin-internet-quote.jpg

John Mathews

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Sep 21, 2014, 12:13:18 AM9/21/14
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Did my brother get suckered in on this one.....now that's a first!

Brother John


On Wednesday, September 17, 2014 11:06:52 AM UTC-4, Bruce wrote:
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