Investors considering the potential economic consequences of a Ted Cruz presidency need to be laser-focused on his plans to end Obamacare.
With the caveat that a Cruz presidency is an extreme dark horse possibility at this point, here’s a glance into the theoretical abyss.
Because the Affordable Care Act imposes an excise tax of 2.3% on medical device revenue to cover the expanded Medicaid coverage, eliminating Obamacare would give a boost to medical device manufacturers like Medtronic (MDT - Get Report) . After all, the bill was scored at $24.4 billion over ten years -- meaning med tech companies who don’t have to pay this additional tax would keep that cash. Medtronic and its ilk would have more capital for research and development and growth.
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