Repeal Device Tax
New jobs study shows device tax repeal could create/save 53,000 jobs.
AdvaMed has consistently and strongly opposed the 2.3 percent medical device excise tax because it harms job creation, deters medical innovation needed to save and improve patients’ lives, and inhibits economic growth. Last year, Congress advanced patient care by temporarily suspending the medical device excise tax – allowing companies to invest in more R&D, re-start delayed projects, and create jobs. We urge Congress to move quickly in 2017 to fully repeal the medical device tax. Doing so will provide certainty for companies making decisions affecting tomorrow’s life-changing medical technologies.
The U.S. leads the world in medical technology, but the device tax threatens that leadership because it puts an additional burden on medical device innovators already struggling under the weight of America’s uncompetitive tax system. The tax is levied on medical device sales in the U.S. regardless of whether the company is making a profit.
Medical technology supports nearly two million jobs directly and indirectly all over the United States. The industry is one of the few U.S. manufacturing sectors that is a net exporter, and its innovations help reduce the human and economic burden of chronic disease. Someone you know is counting on R&D to bring the next breakthrough in medical progress to life. With an aging population, people with disabilities living longer lives, and chronic disease rates growing at faster rates, now is the time for more—not less—resources to advance cures and treatments that help people live longer and healthier lives.