Mark Leahey, CEO of the Medical Device Manufacturers Association (MDMA) issued the following statement on Jan. 25 regarding the introduction of legislation in Congress to repeal the medical device tax:
"We applaud Senator Orrin Hatch and Congressman Erik Paulsen for their leadership and recognition of just how critical the medical technology industry is to the economic engine in America, and we urge Republicans and Democrats to come together to repeal the 'innovation tax' on medical devices.
The United States is the global leader in medical technology and innovation, and the repeal of such an onerous tax will help us maintain our position. It is crucial that we support entrepreneurs and engineers who continue to create quality jobs and physicians who focus on improving the quality of life for patients, especially in an increasingly competitive global marketplace.
When our nation's job-creators face a future with additional taxes and an unpredictable regulatory environment, growth and innovation are stifled. Instead, we need policies that provide incentives for hiring employees and investments in research and innovation."
MDMA has consistently been opposed to the device tax, and continues to work with Members of Congress to work on a full repeal of this tax which would adversely impact innovation, patient care and our economy. In addition, it will disproportionately harm small businesses that develop the majority of innovative and cutting-edge technologies."
The medical device tax was included in the America's Healthy Future Act which was passed by the Senate Finance Committee. The tax would equate to a roughly 3.5% tax levied on the total revenues of a company.
According to an article on medcitynews.com the 10 largest medical device makers would have generated 86% of the $1.87 billion in excise taxes last year, had the healthcare reform law been in effect.
(Note: The article includes a specific breakdown by company of the costs the companies would have incurred.)