Congress considers new effort to repeal medical device tax

By Gayle S. Putrich
Staff Reporter

Published: January 16, 2014 5:14 pm ET
Updated: January 17, 2014 9:54 am ET

Related to this story

Topics Public Policy Government & Legislation Medical
Companies & Associations

WASHINGTON — For some in Congress, a new year means a new effort to get rid of the medical device tax.

As part of his effort to extend unemployment insurance nationwide, Rep. Charlie Dent (R-Pa.) introduced a measure on Jan. 15 that includes a repeal of the 2.3 percent excise tax on medical device that was part of the 2010 Affordable Care Act.

The latest crack at removing the tax comes after the Fiscal Year 2014-2015 budget agreement approved and signed in the last few days of 2013 included language passed in a bipartisan but non-binding Senate vote allowing a repeal of the tax — provided lawmakers can find somewhere else to make up the lost government revenue.

Dent staffers say the proposed bill, co-sponsored by Rep. Mark Meadows (R-N.C.), does include ample offsets, including savings from eliminating the "double dip" that allows some to collect both unemployment and disability checks and cracking down on fraudulent Child Tax Credit claims. It also would strike the 30 hour work week currently stipulated in the health care law's formula and replace it with a 40-hour threshold and approve construction of the Keystone XL pipeline.

The unemployment extension bill "ties the need for immediate assistance with policies that we know will either create new opportunities for workers or save jobs from being eliminated," Dent said in a statement, and is expected to draw bipartisan support.

The measure copies the language of a stand-alone medical device tax repeal bill introduced in 2013 by Rep. Erik Paulsen (R-Minn.) that never taken up by the powerful House Ways and Means Committee; Paulsen's bill garnered co-sponsorships from 227 Republicans and 42 Democrats.

Medical device manufacturers say the newly enforced tax — applied to any device sold to a hospital or medical provider, from MRI machines to heart valves to catheters and expected to generate about $30 billion over the next 10 years — is already costing them more than money.

Medical technology giant Stryker Corp., based in Kalamazoo, Mich., laid off 1,000 workers with Stryker President and CEO Kevin A. Lobo stating that the layoffs were directly related to the increased costs of the device tax. And Bloomington, Ind.-based Cook Medical, Inc. has scuttled plans for five new plants that would have employed about 200 each in the face of a higher tax bill.

Dent and Meadows say the repeal could save as many as 43,000 jobs now at risk in the U.S. medical device field because of the tax.


Comments

Congress considers new effort to repeal medical device tax

By Gayle S. Putrich
Staff Reporter

Published: January 16, 2014 5:14 pm ET
Updated: January 17, 2014 9:54 am ET

Post Your Comments


Back to story


More stories

Image

Polymer Additives, Lubrizol expansions win tax incentives

March 31, 2015 10:22 am ET

Proposed expansions by Polymer Additives Inc. in Cuyahoga County, Ohio, and Lubrizol Corp. in Lake County, Ohio, were among 12 projects statewide...    More

Image

Nanotechnology isn't science fantasy

March 30, 2015 12:15 pm ET

ORLANDO, FLA. — Nanotechnology is fast moving from the world of science fiction to science fact, with developments and...    More

Image

Mucell adds polypropylene parts to its potential resin applications

March 30, 2015 11:59 am ET

Structural polypropylene applications are now candidates for the use of Mucell microcellular foaming technology.    More

Image

Sipospack to build new flexible packaging plant in Hungary

March 30, 2015 9:38 am ET

Hungarian flexible packaging producer Sipospack Kft. is investing nearly 3 million euros ($3.2 million) in an expansion at a new site at Sóskút in...    More

Image

Getting a real feel for how 'vinyl saves lives'

March 27, 2015 6:00 am ET

While I'm certainly not shipping off to Africa anytime soon, I got a taste of what medical professionals go through in the fight against Ebola and oth...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events