Changes in Fiscal Policy by Governments Precipitate Economic Crisis - Essay Example

The issues of exercise tax on medical devices and government spending on education remain essential to Medtronic. More significantly, Medtronic plays an essential in the health care of the American people as it deals with medical technology by being innovative on how to treat chronic diseases. As a result, interested parties lobby the government on how they legislate and formulate the budget for each financial year. Consequently, the federal needs governments to analyze the issues that affect the health sector while formulating fiscal policy.

More than often, federal government spending on education is essential for the country’s population. Additionally, the spending on education consists of both the current and capital expenditure (Van de Water, 2012). As a result, Medtronic deal with medical technology that requires them to have skilled human resources to carry out research and development in the organization. More so, the federal government should deal with increasing their spending on current education by providing sufficient funds to institutions that train medical technologists. In addition, the government should spend on capital expenditures such as building infrastructure for learning to include scientific research institutes. As a result, training becomes more intensive, and medical students can acquire the necessary skills. More so, an increase of research and development funds to facilitate innovation bolsters Medtronic specialists dealing with medical technology because it will not outsource the staff from outside the country.

More so, government spending regulation on health care remains paramount in how health organizations work, as an increase in spending on the health care system by the government brings the development of drugs and medical technologies leading to breakthrough products, innovation hubs, and new markets (Squires, 2012). Significantly, the organization dealing with the development of medical technologies is affected by an increase in government spending on health care as it will have a direct impact on the development of cheaper and affordable medical equipment by the organization. Considerably, the health care spending in the country has outpaced GDP growth for the past several decades thus, the government should continue with this trend, as it will reduce the cost incurred in medical devices leading to increased purchase of medical equipment at a cheaper and affordable cost.

Noticeably, the Affordable Care Act has imposed an excise tax of 2.3 percent on manufacturers of medical devices starting in 2013 (Van de Water, 2012). More so, manufacturers of medical devices will have to pay the excise duty resulting in increasing the cost of medical devices produced by the companies in 2013. Significantly, the federal government should request that Congress repeal the law because it increases the cost of medical devices and medical care of patients. Additionally, the increase in costs of the medical device will make the company manufacture the devices offshore leading to a reduction of the companies’ workforce in the country. Significantly, the government should repeal the excise tax imposed subsequently to reduce the costs of medical devices produced by the company and make them affordable.

Considerably, lobbying is indispensable in articulating issues on matters about organizations to the government and the Senate. Therefore, lobbying is essential for the company to articulate issues about the excise tax, spending on health care, and education. More so, lobbying provides a platform for the organization to petition the government to consider certain issues when formulating laws and the budget thus, lobbying will benefit both medical companies and the public.

In conclusion, lobbying is essential in articulating issues affecting companies and the public. More so, there should be continuous monitor the fiscal policies of the government that affect the medical sector. In addition, the policies should articulate issues that remain beneficial to medical-related companies and the public. Significantly, lobbying should be done based on ethical grounds and by the set rules and procedures. Read More