Survey: Vast Majority of Medical Device Companies Will Decrease R&D, Delay Hiring if Device Tax is Reinstated
WASHINGTON, D.C. – The Medical Alley Association yesterday released a survey of its membership demonstrating that if the medical device tax is reinstated on Jan. 1, 2020, 83 percent of medtech companies will decrease R&D spending, 67 percent will delay or forego planned hiring, and 47 percent will delay plans to physically expand their business.
“The harm the medical device tax will do to patients is clear,” said AdvaMed President and CEO Scott Whitaker. “Reduced R&D spending means fewer life-saving and -improving innovations. Delayed hiring – combined with the 21,390 job losses predicted by the Tax Foundation last week – means fewer scientists and engineers working to discover the medical technologies of tomorrow. The tax has been suspended for longer than it was ever in place precisely because everyone recognizes these consequences. There is overwhelming bipartisan agreement that the medical device tax is bad health policy, bad tax policy, and bad for American patients. It’s time to repeal it once and for all.”