A 2013 Ernst and Young study found that the 2.3% medical device tax, which came into effect on Jan. 1, would amount to a whopping 29% of R&D spending industry-wide.
The tax which is expected to raise about $30 billion over the next decade is also projected to cost 43,000 jobs more than 10$ of all jobs industry-wide due to R&D reduction, as reported by Michael M. Rosen, in an article in The American.
Rosen reports that there is movement to repeal this tax. “Strong, bipartisan majorities in both houses of Congress have already taken preliminary votes to repeal this tax — twice in the House, by 270-146 and 231-192 margins, and once, by a 79-20 margin, in the Senate — and repeal appeared to be on the table during last month’s government shutdown.
The full story “RX for R&D: Repealing the Medical Device Tax” can be read in The American, a publication of the American Enterprise Institute.
