Why the Medical Device Tax Should Be Repealed
An 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 medical device tax, part of the Affordable Care Act, is a 2.3 percent excise tax on the price of taxable medical devices sold in the United States.
- The tax has been suspended since 2016, but the current moratorium will expire by the end of 2019, unless Congress extends it or repeals the tax outright.
- If imposed, the excise tax would result in a decline of 21,390 full-time equivalent jobs and a reduction in GDP of $1.7 billion.
- Research has been published confirming the negative effects of the medical device tax on industry and consumers. The tax fails to lower health-care costs for consumers but increases costs and burdens on the health-care industry.
- The medical device tax is not sound tax policy due to its complexity and adverse economic effects.
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Issues:Medical Device Tax