Paulsen Introduces Legislation Repealing the Medical Device Tax
January 3, 2017 Washington, D.C. – As his first initiative of the 115th Congress, Congressman Erik Paulsen (MN 03) has introduced legislation that would permanently repeal the burdensome medical device tax. The Protect Medical Innovation Act repeals the 2.3 percent
Paulsen Introduces Legislation Repealing the Medical Device Tax
January 3, 2017 Washington,
D.C.
– As his first initiative of the 115th Congress, Congressman Erik Paulsen
(MN-03) has introduced legislation that would permanently repeal the burdensome
medical device tax. The Protect
Medical Innovation Act repeals the 2.3 percent excise tax included
in President Obama’s health care law that applies to the sale of medical device
products.
Similar
legislation was introduced by Congressman Paulsen in previous sessions of
Congress. In the 114th Congress, a two-year suspension of the medical device
tax passed in both the House and the Senate with bipartisan support and was
signed by the President. The Protect
Medical Innovation Act was introduced with broad bipartisan
support and 221 cosponsors.
“One
of the best ways to protect American manufacturing, spur innovation, and make
sure the latest and best medical technology is affordable for patients is to
repeal this burdensome tax,” Paulsen said. “We are already seeing new American
jobs and increased investment in research and development as a result of the temporary
suspension of this tax. With over 200 cosponsors at the start of this new
session, and with overwhelming bipartisan support in the past, permanent repeal
should be a top priority for Congress.”
Advocacy
groups and stakeholders praised the reintroduction of the Protect Medical Innovation Act.
“The early introduction of
device tax repeal legislation sends a strong signal that this issue is a
high priority for the incoming Congress. A bipartisan majority in
the House recognizes that this anti-job, anti-innovation and anti-patient
tax needs to be permanently repealed now,” said JC Scott, Senior
Executive Vice President, Government Affairs at Advamed. “The current suspension of
the tax has allowed medical technology companies to reinvest funds
into new R&D, restart delayed projects, build infrastructure
and support new hiring. The sooner this onerous tax is gone for good, the
sooner these benefits can be made permanent. That’s crucial for patients and
for continued medical innovation.”
“In
order for medical technology innovators to develop the new cures and therapies
of tomorrow, we need smart policies in place today,” said Paul
LaViolette, Executive Chairman of CardioFocus and Chairman of the
Medical Device Manufacturers Association. “Permanently repealing the medical device tax is a major
boost to accomplish our mission, and Congressman Paulsen has been a tremendous
leader in making sure innovation thrives in the 21st century.”
“We
appreciate the leadership of Congressmen Paulsen and Kind on this bipartisan issue
and for their longtime support in championing economic growth, job creation and
patient care through investment in the medical technology industry,” said Joe Robinson,
chairman of MITA Board of Directors and Senior Vice President of Health Systems
Solutions at Philips Healthcare. “Full
repeal of the medical device tax is the only way to remove a significant
barrier to medical progress once and for all, thereby allowing the next
generation of life-saving, breakthrough technologies to become a reality.”
Congressman
Paulsen, a champion of small business and advocate of free enterprise,
entrepreneurship, and innovation, serves on the House Ways and Means Committee,
the bicameral Joint Economic Committee, and is co-chair of the Congressional
Medical Technology Caucus.
For more
information on Congressman Paulsen’s work in Congress visit paulsen.house.gov.
