Cabela’s cash register ‘glitch’ shines a spotlight on new medical excise tax

Remember how we were all assured that we’d love Obamacare once we found out what was in it? People are already noticing shrinking paychecks, and with 2013 only three days old, people are already turning to — a site dedicated to debunking urban legends — to make sense of the country’s new Medical Excise Tax.

Why was this guy in TX charged Medical Excise tax on gun accessories at Cabela’s yesterday? #obamacare…

— Shanna (@ShannaGSC) January 2, 2013

What now? We thought that only “the rich” were going to be paying more in taxes.

check you store receipts for your new “Medical Excise Tax”

— according to Amy (@Amyloukingery) January 3, 2013

“Medical excise tax” showing up on receipts … I’ll only be purchasing bare necessities from now on.

— Christine (@ineedaname13) January 2, 2013

How To Kill An Economy 101 RT @ineedaname13 “Medical excise tax” showing up on receipts I’ll only be purchasing bare necessities from now on

— BiasedGirl (@BiasedGirl) January 3, 2013

Has anyone had a chance to buy something that required the new medical excise tax yet? Yard sales are looking better & better these days.

— ReggieP (@Queen2Five) January 3, 2013

@heifer109 If this is accurate, I understand why Obama flew out to Hawaii.Probably should stay off the mainlandawhile. #medicalexcisetax

— Amber Girl (@AmberGirl3) January 3, 2013

The Medical Excise Tax is real, and it kicked in Jan. 1. In short, it’s a 2.3 percent tax on medical devices. There is a retail exemption that covers “devices that are of a type that are generally purchased by the general public at retail for individual use,” as well as exemptions for eyeglasses, contact lenses and hearing aids.

The tax is supposed to be “hidden” from the consumer, but it was brought to the public’s attention when receipts from hunting and fishing store Cabela’s showing the tax as a separate line item went viral.

Welcome to Obamacare everyone! The Medical Excise Tax. Anyone still believe BO didn’t raise taxes on the middle class?…

— Sean Parnell(@SeanParnellUSA) January 2, 2013

@cabelas What’s the dealio with the “medical excise tax” showing up on your receipts? Seeing pics all over…is that for real?

— Jerry Kennedy (@jerrykennedy) January 3, 2013

Cabela’s has since explained that the charge was a “glitch,” and that anyone who believes they were charged incorrectly should see the store for a refund.

On Snopes–Basically, TX retailers CAN line item medical device taxes. But, Cabela’s had a “glitch” that charged. Thanks, Obamacare!

— Amanda Carpenter (@amandacarpenter) January 3, 2013

Cabellis offering #Refunds #cash register #glich on medical excise tax

— martha angel (@heifer109) January 3, 2013

Check all your receipts for any purchase after january1 make sure your not being charged medical excise tax like i was at cabelas for ammo.

— West Valley Citizen (@WVCitizen) January 2, 2013

The “glitch” does, however, demonstrate the confusion that still surrounds Obamacare. The tax is intended to apply to manufacturers and importers and is expected to raise $29 billion over the next 10 years to help pay for Obamacare, but that cost will almost certainly be passed along to the consumer through higher prices.

My dentist just discovered the medical device tax in Obamacare. He didn’t think dentistry wld be affected.He will have 2 raise prices now

— Kathleen McKinley (@KatMcKinley) December 29, 2012

So, even though the tax might not show up as a separate line item on your receipt, that doesn’t mean you’re not paying it. And if it does show up on your receipts, it’s probably real, and you should get used to it.

I know the Cabela’s “medical excise tax” was an error. Point: 1.That there is such a tax. 2.Prices going up to cover costs of Obamacare.

— Gretchin (@gretchininTN) January 3, 2013

So what’s up with the Medical Device Tax? Obama told me I wouldn’t see my taxes go up one cent. Did he lie? 😉

— LisainDallas (@LisainDallas) January 2, 2013

Obama is out to TAX US TO DEATH, via payroll, dividend, capital gains, medical device, FSA and Medicare taxes.#shameonobamavoters

— PolitixGal (@PolitixGal) January 3, 2013

Taxed to death? Is that covered under Obamacare?