There is little information in this article to decide the merits of this tax loophole. The best I can remember, it gave an unreasonable benefit to a few companies in the field. The larger the industry, the more lobbying that they do to get Congress to rule in their favor. That's why the tax code it 10's of thousands of pages long. I believe this tax item was put into the larger health care bill because the tax expenditure was calculated to have little positive effect, despite the outcry, and Congress needed the savings to actually cover people who were ill. Medical needs are pretty inelastic, so I expect most of this tax goes to increasing ROI for the vendors. Show me the numbers if you know more.
As we unveil EE Times’ 2015 Silicon 60 list, journalist & Silicon 60 researcher Peter Clarke hosts a conversation on startups in the electronics industry. Panelists Dan Armbrust (investment firm Silicon Catalyst), Andrew Kau (venture capital firm Walden International), and Stan Boland (successful serial entrepreneur, former CEO of Neul, Icera) join in the live debate.