800 Medical Device Companies Send Letters to Congress Regarding Excise Tax on Devices–Suggested Alternative Has Been Here
Posted Nov 28 2012 10:31pm
Now that the time is getting closer, the heat is on. When the healthcare reform law was created things were different and the economy was better. Any business in the US making tangibles is having a hard time as Wall Street way over inflated the value of software algorithms, social algorithms you name it and the tangible side can’t keep up. You can blame Wall Street for their greed once more, but back on track this tax should be reversed and we don’t have enough folks in executive positions with enough computer science or even a tiny bit of IT experience. Big thumbs up though for Illinois who elected a physicist and I have great hope for him in helping bring some of the digital illiterates we elect up to speed as that’s about our only hope.
Today reading the news about Darrell Issa proposing a 2 year ban on internet laws…this is sticking out like a huge sore thumb..does he not realize how foot in digital illiterate mouth looks? This is where they need to get on board and granted the media continues their somewhat strange reporting at times but those journalists have goals to reach as far as readers and they know sex, drama queen antics, and OMG get readers so that’s what we get and frankly if I were in their position with a boss wanting numbers, what do you do, you play the game or don’t have a job, so no personal attacks there at all. Actually it’s kind of good that they do that as they get the basic news out and then folks like me and others can dissect it and give you another view which is what I try to do with honesty.
I used to write code and so for the most part this blog gets away from the “magpie news formats” as best I can. We need journalists as they bring the story in and the support the bloggers too but yeah I do wish the OMG and drama queen crap were down to a smaller number as I know we need some of that to have a healthy mix. We do have Jon Stewart and Steven Colbert to bring us back to earth when the crap gets real bad and even the press themselves at some point makes fun of themselves too.
We have this entire billion dollar profit machine out there that nobody wants to see I guess that gets their data for nothing and their profits for free and those are the data sellers who “should” be paying an excise tax and be licensed. I keep reading over and over and over about the potential cuts to science, well this tax could fund a lot of science at the NIH, help the FDA and what ever else you might want to toss in there as the profits are huge when you bring in banks, companies you name it. You can read more about how it would help the NIH and FDA here. When you think of Walgreens in 2010 making short of $800 million, how big is that pot…HUGE! All business relies on it today and I think about this every time as a consumer when I have to pay an excise tax on a tire I need for my car to keep the highway infrastructure up. What pays for the government IT infrastructure? Nobody…and business benefits more than anyone else from it.
In the meantime we are all somewhat Algo Duped on what data is important and what has value and there’s just flat out crap out there too, everyone knows that but they still seem to spin market crap. It’s totally amazing that corporate USA (this includes companies, banks, trading firms, social media and ton of other entities) are just flat out getting rich from selling data. In addition state governments who do license some of these mining bots are now having a new expense with it, software to limit the bots so you and I as consumers can still get access. A while back North Carolina tossed out Core Logic due to this and the fact that they were not updating and paying timely for updated information. Have you as a “consumer data chaser” had the experience of getting corrected information fixed and then wait and wait and wait until it gets updated? This is part of the reason. Here’s another back link of mine on the topic.
This topic was also chapter 17 of my Attack of the Killer Algorithms series which depicts how math and formulas “get you” when you least expect it and it is due to flawed data or folks using unethical algorithms and formulas for profit. Instead of the Occupy movement as we see it, “Occupy Algorithms” for goodness sakes and let’s get some accurate queries and data out there instead of some of the ones designed for “desired” results. We end up with something along this line:
”Hey dude let’s crunch some numbers and see if we can come up with some analytics to sell”
Well we have one down with the SEC commissioner leaving and I hope we get a replacement in there soon with a tiny bit of computer science or IT in their background. Back when Sebelius was nominate I about got chastised when I suggested someone else and this is not personal but when you have written data you can visualize how this is going to play out and at that time I said Health IT was going to run her over and it’s about there with the way technology has evolved. Three years ago I said this below, meaning check the math, the formulas and lets clean things up.
So yes in view of all of this scamming going on, move the tax over here as the device companies are some of the last tangibles we have left in the US and they create jobs..what does Congress not see here? They have to negotiate too with insurance companies to cover a lot of what they produce and that’s another bunch who makes billions selling our data, tax them. Sure some device companies may sell data but they would be in there with everyone else and it would not be such a big chunk to absorb as the banks and the social networks I would guess would have most taxes to pay. License them so fines can be given out for selling without a license. Require all to update a federal website where they disclose what kind of data they sell and to who. We all talk about transparency so this would be part of the deal, a win for consumers too.
We need the device manufacturers and even some of them due to this tax have fallen into the area of selling data and not expanding and do it over seas and why not if you can hire a few technologist to mine and sell data and move your job over seas. I’m not saying all have done this but some have and the US gets no no jobs. If they had to pay a tax on some of this that is stiff enough it could be just enough to where buildings plants and hiring employees looks good again. They didn’t create this issue but our government just sat back and let it grow as so many are digital illiterate to the changing world of technology. I hear the same thing from folks in the markets too that they are appalled at what the government allows to occur but they do things they think are morally wrong because the government allows it.
Here’s a story I did on Cook Medical and it proves exactly what I said in the above paragraph, they are not building a new factory in the US as they have to pay this excise tax. This is not showing favoritism but rather this reality and it’s happening more than what you think, get in to some math and do the numbers. I had people write and thank me for this article.
Cook Medical claims the tax on medical devices, set to take effect next year, will cost the company roughly $20 million a year, cutting into money that would otherwise go toward expanding into new facilities over the next five years. This was also one of my Attack of the Killer Algorithm stories, which is a year long grouping of how algorithms and formulas attack you in real life and the reality of all the flawed data arising out there as companies and banks combine credible data with non credible data to make a buck. Now I like data and what it does but I can also see when it gets stupid and formulas created only for money…more on that later..
I write this because I don’t think our lawmakers are aware of the words choices and options today and we have a lot of them and I tried to tell the device folks “suggest this” as an alternative because if you wait for them to come up with an alternative idea or suggestion, it’s not going to happen. I still have my House of Representatives person here in the OC still doing Town Halls using “robocalls” so I see it and don’t deny it:) My phone rings and he’s just so happy on the robocall recording to have me and all the others robocalled in his presence. Amazing is is not that I live in one of the most technology savvy areas of the US and that’s what I get….ok moving on..
I don’t very often stand by Fox but they have this one right and it could be by accident I don’t know but this is a sure way to send the US economy further down the tubes when there are plenty of other alternatives and folks just won’t open their eyes. Now one more video and this video under several other posts I have done has been going like gangbusters. It’s on this page too on the left hand side so watch and learn. This is where the trouble begins with greed and fiction with math, codes and formulas. It doesn’t get any better than this when the folks aka quants tell you about their work and the fiction they are paid to write and they too tell you that if we let this continue it’s our own fault. We need to use some logic and drop the OMG and drama queen crap and take a look at the reality here. I just checked the views on this and the maker should be happy here as a couple months ago it only it had 3000 views and now its up over 400,000. I don’t see anyone else pitching it so a good thing as folks are getting educated.
Quotes from the video: “with software you can do anything but not so in real life”…”you become so isolated from the real world”…”making money is like a drug”…”you are just so much better than anyone else”…” I used to be a computer programmer at a major player on Wall Street that is no longer among us for obvious reasons”…”I did the plumbing, not the model itself but the infrastructure surrounding the model”…”I could do it sleeping”…”why I decided to stay off camera and anonymous”…”we sold the software to all the investment banks”…”I left in 2000 and after that it went nuts”…”CEOs are actually fantastic instruments when they slice and dice”…”I have to apologize to the planet (said the quant)”..”I have the ability to see patterns and abstract mathematical symbols”…(most programmers do)…”the managers just have to believe the quants”…”if it’s a hedge fund they are taking a percentage of the money even if you go bankrupt, they don’t lose money it’s the client’s money that is lost”…”wait a minute (developer) these guys are out of control (Wall Street)”…”because I was a technologist I did not fully understand what was going on”…”you have to have some kind of responsibility”…”If people don’t complain now, it serves them right (quant)”…
”people that are in the business now refuse to talk to the press as they would probably be fired”…”you have to be perfect and you have to be right all the time, if the software fails you lose millions and billions”…”it’s a lot of stress”…(that goes for almost any software development, healthcare included)…”you wake up and you don’t know what day it is”…”banking has completely lost touch with it’s purpose”…”sometimes the real world is just dirty (quant)”…'”Quant back to the drawing board and re-do your numbers change the math and make it look less risky”….”hide the risk”…”once you have too much mathematics, it’s difficult to see where the mistakes are”…”banking has become so enormous it has outstripped all other businesses when it should be supporting”…”hedge funds get the black boxes as close as they can to the exchange”…”a black box has a secret or a formula inside, stock prices, etc. that tells you what to trade”…”Google search, trading on what people are searching for”…”people say Goldman itself is a black box, we don’t know how it makes all it’s money”…
So this is where the money went and we need to hang on to our tangible manufacturing business and not send it away and not be duped by the formulas and bad models that cause “Algo Duping”. Place the tax elsewhere on those who are benefiting from data so we can regain some balance and not lose more jobs. Again after watching the video you may have a lot better idea as to how are arrived at where we are and that the need for key executives with some computer science and IT experience is mandatory or we go further down this road to recession and the dirty code and models for profit win and get more our money, leave the device people alone and look at other choices.
If you want to see more on the algorithms visit Algo Duping 101 for additional videos. BD