AdvaMed has consistently and strongly opposed the 2.3 percent medical device tax.
The U.S. leads the world in medical technology, but the medical device tax threatens that leadership because it puts an additional, punitive burden on medical device innovators by imposing a up-front tax on revenue and only on the medical technology sector.
At the beginning of 2018, Congress suspended the tax for another two years, preventing harmful cuts to jobs and investments; now, Congress needs to fully repeal the tax to save and improve patients’ lives, unleash new job growth and innovation. Only with long-term relief will the medtech industry be able to make the multi-year investments in R&D and infrastructure necessary to sustain the innovation ecosystem and take the next leap forward in patient care.
On July 24, the House voted to permanently repeal the medical device excise tax with the passage of H.R. 184, the Protect Medical Innovation Act of 2017. 283 Members of Congress, including 57 Democrats, sent a strong signal of support for repeal.
Securing this significant House vote was very important. The large margin reemphasizes the level of support this issue has in Congress and distinguishes the need for repeal as an issue separate from other taxes included as part of the Affordable Care Act. Most importantly, this successful vote has well positioned this issue for further consideration in the Senate this year. The Senate companion bill (S. 108) also has strong bipartisan support, including eight Democratic co-sponsors, and AdvaMed is working with its members to advance the issue and eliminate this tax once and for all.
Click here to thank Congress for protecting medical innovation.
The benefits of full-repeal:
|71%||of companies surveyed would reinstate previously foregone hiring.|
|85%||of companies surveyed would reinstate previously foregone R&D projects.|
|2M||jobs directly and indirectly supported by medical technology all over the United States.|
⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ Download the Medical Device Tax Repeal Infographic
What's Really Being Taxed?
Recent advocacy efforts have focused on asking Congress one simple question, “What’s really being taxed?” Without repeal of the medical device tax, new treatments and cures could be out of reach for patients and families across the country.
The following ad was featured on The Hill, CNN, and Fox News websites.
Make America Work Again
The device tax threatens our country’s ability to invest in next-generation solutions and our ability to improve patient care. It threatens our economy. And it threatens good-paying, high-quality American jobs.
Concerned about the economy? RT to support an easy way to put America back to work. pic.twitter.com/ZVlGjKOZ67
— AdvaMed (@AdvaMedUpdate) November 30, 2017
New Jobs Study Released
In early March, American Action Forum (AAF) released a study that projects that if the Medical Device Tax resumes in 2018, up to 25,000 additional jobs could be lost by 2021. However, if the tax is permanently repealed, it is expected that the jobs already lost when the tax was in effect will be recovered within three to five years. This means that the net impact of permanently repealing the medical device tax could be in excess of 53,000 additional jobs, compared to what would occur if the tax remains in effect.
Click here to download the full report.
Red Box Drop on Capitol Hill
In early September we delivered empty MedTech red boxes to every Congressional office on Capitol Hill to signify the loss of innovation due to the medical device tax.
Click here to learn more.