The medical-device excise tax is supposed to raise $20 billion of Obamacare’s $438 billion of revenue through 2019. The IRS started collecting the tax in January 2013, and expected to get $1.2 billion in the first half of 2013. The actual take? $913 million — a shortfall of almost one quarter.
This is the conclusion of a report by the Tax Inspector General for Tax Administration (TIGTA). However, the report also found a “discrepancy” of $118 million between what the IRS collected and the amount TIGTA believes was owed. Why? To put it simply, it is proving very difficult to determine which firms owe the tax.