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MITA, AdvaMed & MDMA Support Bipartisan Efforts to Repeal the Device Tax
The Medical Imaging & Technology Alliance (MITA), Advanced Medical Technology Association (AdvaMed) and the Medical Device Manufacturers Association (MDMA) today applauded the introduction of bipartisan legislation to repeal the 2.3 percent medical device excise tax. The legislation, H.R. 160 “The Protect Medical Innovation Act,” was sponsored by Reps. Erik Paulsen (R-MN) and Ron Kind (D-WI), and was introduced with 254 original cosponsors.
“Repealing the medical device tax is critical for the United States to maintain its global leadership in this high-tech manufacturing sector and to allocate resources toward the development of new cutting-edge technologies. This tax on innovation stymies the search for cures and treatments and stalls job creation,” said Stephen J. Ubl, President and CEO of AdvaMed. “We appreciate the ongoing support from both sides of the aisle and the leadership of Reps. Paulsen and Kind on this important issue.”
“We encourage leaders in Congress and the Administration to seize on the momentum for repeal of this harmful tax that stifles innovation,” said Gail Rodriguez, executive director of MITA. “Since the tax was enacted, workers have lost jobs and the U.S. economy has suffered. It is high time to repeal this tax.”
“For too long the medical device tax has been a major roadblock for America’s innovators and entrepreneurs as they seek to alleviate human suffering,” said Mark Leahey, President and CEO of MDMA. “MDMA thanks Congressmen Paulsen and Kind for their tireless leadership on this important issue. Now is the time to repeal the harmful medical device tax and to provide an immediate boost for job creation, innovation and patient care.”
“The Protect Medical Innovation Act” is the most recent example of legislation to repeal the medical device tax and underscores the significant bipartisan support this issue has gained. Seventy-nine Senators also voted to repeal the tax as part of the budget resolution in 2013, and dozens of House Democrats are original co-sponsors of H.R. 160.
The United States is the global leader in health care innovation and is a net exporter of medical devices but the medical device tax threatens to undermine this position. The device tax remains a drag on medical innovation and has resulted in the loss or deferral of more than 33,000 industry jobs.
The medical technology industry is an important engine for economic growth in the United States, employing more than 400,000 workers nationwide, generating approximately $25 billion in payroll, paying out salaries that are 40 percent more than the national average ($58,000 vs. $42,000) and investing nearly $10 billion in research and development annually. The industry is fueled by innovative companies, the majority of which are small businesses, with 80 percent of companies having fewer than 50 employees.