Groups Refute False Claims that Device Tax Harms U.S. Economy
Washington, D.C. – Americans for Tax Fairness and 30 other national organizations sent a letter to Members of the U.S. House of Representatives urging them to oppose H.R. 160, a bill that would repeal the medical device excise tax. This is a modest 2.3 percent tax that is assessed on medical devices such as coronary stents, irradiation equipment and orthopedic implants, and is paid by device manufacturers or importers. Eliminating the device tax would lose more than $24 billion over 10 years. U.S. medical device companies had at least $166 billion in sales last year alone.
The letter states “Medical device companies need to contribute their fair share to health care reform, as other industries are doing. For example, insurance companies are contributing $102 billion in new taxes over 10 years, and pharmaceutical companies are contributing $34 billion (p. 17 of CBO estimate). They have done so because they all – including the medical device industry – will reap significant benefits from the increased demand for medical services and products resulting from the ACA. Repealing the medical device excise tax will encourage other industries to try to undo their contributions… The American people don’t need another big corporate tax break. Therefore, we urge you to oppose any efforts to repeal the medical device excise tax.”
Americans for Tax Fairness also authored an editorial board memo on the medical device tax debate, which can be found here.
Americans for Tax Fairness is a diverse coalition of 425 national and state endorsing organizations that collectively represent tens of millions of members. The organization was formed on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. ATF is playing a central role in Washington and in the states on federal tax-reform issues.