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IRS Final Device Tax Regulations Underscore Urgent Need for Action
Washington, D.C. Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), released the following statement on the release by the IRS of the final implementation regulations for the medical device tax:
“AdvaMed is carefully reviewing the regulations released today by the IRS. But regardless, Congress should act to address this $30 billion tax before it takes effect on January 1. There is strong bipartisan support for action. While Washington talks about a fiscal cliff, this tax could push us off an innovation cliff, costing as many as 43,000 jobs and hurting the ability of medical technology companies to find tomorrow’s treatments and cures. It should be repealed.
“Already, medical technology companies are laying off workers or cutting back on research and development or other expansions. The tax also is scaring away investors and it threatens U.S. leadership in medical technology, where America is a net exporter to the tune of $5.4 billion a year.
“We appreciate the time and effort IRS staff spent reviewing our comments and considering the issues we raised.”
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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies.