👍🏻H.R. 184: Protect Medical Innovation Act👍🏻
I’m in strong support and passage of the H.R. 184: Protect Medical Innovation Act of 2017 bill would repeal the 2.3 percent tax on medical device manufacturers and importers, that was imposed as a way to fund the Patient Protection and Affordable Care Act (ACA).
The medical device industry, which employs nearly 400,000 Americans, is vital to our health care and our economy. The industry is comprised largely of small businesses. Of the 7,000 medical device manufacturers in the United States, the vast majority employ fewer than 50 employees. Many of these are startups that generate little to no sales revenue.
Imposing a 2.3% tax on revenue, rather than income, subjects the U.S. device industry to one of the highest corporate tax rates in the world. Unfortunately, as companies look to make cuts to offset the tax, one of the first items to go is research and development. This undermines the future of the industry and puts the discovery of new breakthrough medical technologies at risk.
Additionally, the tax revenue generated from medical devices is approximately $2 billion annually. Relative to the federal budget, this represents roughly one half of one tenth of one percent of government spending. Repealing the tax will not have a meaningful impact on the budget, but a permanent repeal would be significant for these small businesses and their ability to continue to grow. By all means Stop 🛑 this unnecessary tax which is nothing but a burden on the consumers and was just another ACA tax designed by the Democrats to pay for the failed program.