Congress looks to repeal medical device tax
WASHINGTON – A bill to repeal the medical device tax passed in the House of Representatives last week.
H.R. 160, the Protect Medical Innovation Act, passed with a bi-partisan vote of 280-140. The bill now heads to the Senate, where repealing the tax also has bi-partisan support, according to a press release from Rep. Erik Paulsen, R-Minn.
“As a country, we take great pride in our ability to create, invent and innovate—especially when it comes to products that improve people’s lives,” stated Paulsen, who authored the bill. “The medical device tax stands in direct contract to this ideal, which is why you’ve seen members of Congress from across the political spectrum support its repeal. It’s time to push this legislation across the finish line and support American jobs and innovation.”
The 2.3% medical device tax was included in the Affordable Care Act and went into effect Jan. 1, 2013. Most, but not all, home medical equipment was excluded from the tax.
As an example of the impact of the tax, Paulsen noted one small business in his district is paying an effective tax rate of 79% because the tax is based on sales, not profit.
Paulsen serves on the House Ways and Means Committee and the bicameral Joint Economic Committee, and is co-chairman of the Congressional Medical Technology Caucus.