Medical Device Tax Repeal Gains Momentum

By June 18, 2015Taxation

Earlier today, the House of Representatives voted in favor of H.R. 160, the Protect Medical Innovation Act introduced by Rep. Paulsen (R-MN) to repeal the ill-conceived excise tax on the gross sales of medical devices. The decisive, bipartisan vote shows that Congress understands the negative impact this burdensome tax has had on medical device manufacturers, their employees and the patients that rely on their life-saving products.

The U.S. medical device manufacturers continue to lead the global industry, driving innovation and supporting American jobs. The current tax, which will increase the overall tax burden on the industry by more than a third, draws capital away from research and development in an industry that relies on new technology, threatening U.S. jobs and stifling innovation.

The bill now moves to the Senate, where Senate Finance Chairman Hatch (R-UT) has introduced a similar bill, S. 149, the Medical Device Access and Innovation Protection Act. Thirty-six Senators from both sides of the aisle cosponsored the bill. This is the first time a Republican-controlled Senate has considered a repeal of the medical device tax. The House has previously passed the same bill twice, however both attempts failed to pass in the Senate. That said, H.R. 160 received considerably stronger bipartisan support than past repeal efforts.

The NAM will continue to work with our member companies, coalition allies and members of Congress to repeal the job-killing medical device tax.

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