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Real Clear Policy: Kill the Medical Device Tax
The Daily Caller: The Senate Should Repeal The Medical Device Tax
A new analysis released by the nonpartisan Tax Foundation reports that the return of the medical device excise tax would lead to a loss of 21,390 U.S. medical technology jobs and a $1.74 billion decline in the nation’s GDP.
The Tax Foundation report cites the nearly 29,000 decline in industry jobs, as well as the decrease of $34 million in R&D spending and $188 million in sales when the tax was in effect from 2013 through 2015.
These reductions, the analysis says, led to “less innovation and as a result, worse patient care.” The Foundation also notes that the medical device excise tax “violates multiple principles of sound tax policy...The tax is neither simple, transparent, nor neutral, to the detriment of taxpayers and those in need of medical devices.”
The U.S. leads the world in medical technology innovation. The medical device excise tax, a 2.3% levy, threatens to stifle American innovation and hinder the ability of industry to develop new life-saving and life-enhancing medical devices. Initially implemented in 2013 as part of the Affordable Care Act, the tax has been suspended twice because policymakers recognized the tax for what it is -- bad policy that will harm patients, health care providers, and the American economy.
If Congress fails to act, the device tax will be reinstated in January 2020. Congress must end the tax once and for all to save and improve patients’ lives and to encourage job growth and innovation. Only with long-term tax relief will the medtech industry be able to make the multi-year investments in R&D and infrastructure necessary to sustain this dynamic innovation ecosystem.