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Real Clear Policy: Kill the Medical Device Tax
The Daily Caller: The Senate Should Repeal The Medical Device Tax
The medical device tax was fully repealed in late 2019. Full repeal of the medical device excise tax is a clear win for American patients, American workers, and the American health care system. Repeal of the medical device tax means that instead of $20 billion going to the IRS, medtech companies will use that money to:
When the device tax was in place, the medtech industry and the patients we serve were so negatively affected that bipartisan majorities in Congress supported suspension of the tax. The U.S. Department of Commerce confirmed that nearly 29,000 American medtech jobs were lost while the tax was in effect from 2013-2015, and medtech companies decreased their R&D investments by 20 percent.
The tax was suspended for longer than it was ever in place because of widespread, bipartisan agreement that increasing the cost of lifesaving medical technology was bad policy. More than 2 million American patients interact with the health care system on any given day.
The first suspension of the tax led to a medtech boom. When the tax was suspended the first time from 2016-2017, a survey of medical technology companies showed that our industry expanded our businesses and investments in life-saving technology:
The nonpartisan, widely respected Tax Foundation predicted massive job losses if the device tax had returned in 2020. A November 2019 Tax Foundation study confirmed that reinstatement of the tax would have cost 21,390 American jobs in the first two years and a $1.7 billion hit to U.S. GDP.
There are more than 2 million MedTech employees in the U.S. What if every one of them reached out to Congress to thank them for repealing the medical device excise tax? Talk about a powerful message!