A coalition of conservative action groups yesterday jumped on the bandwagon for repealing the medical device tax, urging Congressional leaders to scrap the 2.3% levy on U.S. medtech sales.
In a letter to House speaker Rep. Paul Ryan (R-Wis.) and Senate majority leader Sen. Mitch McConnell (R-Ky.), the group also advocated for repealing a tax on certain insurance programs. Both levies, enacted as part of Obamacare, are on hiatus until next year.
The group, which includes Grover Norquist’s Americans for Tax Reform and the political arm of the American Legislative Exchange Council, warned that both taxes will lead to “higher premiums and higher costs for middle class families, seniors, and small businesses.”
“There are more than 6,500 medical device companies in the U.S., 80% of which have fewer than 50 employees. The industry contributes $150 billion annually to the economy. The tax impairs the industry’s ability to innovate, invest, and create jobs,” according to the letter, which cites figures from the center-right American Action Forum. “If Congress allows it to go into effect in 2018, the medical device tax could lead to more than 25,000 lost jobs by 2021. Over the next decade, this excise tax is projected to increase taxes by $30 billion.”
The move to repeal the medical device tax, which enjoys bipartisan support in both chambers of Congress, is also the subject of a social media campaign by industry lobby AdvaMed aiming to goad legislators from key states.
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