We’re pleased to hear that early next month members of the House of Representatives will have the opportunity to vote to “excise” from the Internal Revenue Code, a new tax on medical devices set to begin in 2013. This ill-conceived 2.3 percent tax on gross sales of medical devices manufacturers was part of the health care reform law.
By increasing the costs of medical devices, the excise tax will hurt the companies and their workers and also stifle the research and innovation that leads to the development of medical products that contribute to the health and well-being of all Americans.
Moreover, as today’s Wall Street Journal points out, perhaps the most damaging impact of the excise tax is on U.S. competitiveness. With Europe, Israel and Asia working hard to take over the United States’ lead in the life sciences, a tax like this will only make their job easier. Let’s hope the House gets the ball rolling and Congress sends a bill to the White House as soon as possible that would stop this job-killing tax before it even starts.