Bill to Repeal Device Tax Introduced in the House
BY LAUREN UZDIENSKI, JANUARY 26, 2011
Rep. Erik Paulsen (R-MN) introduced the Protect Medical Innovation Act this week, which would repeal the $20 billion device tax that was passed as a component of President Obama's healthcare reform legislation. The reform package stipulates that beginning in 2013, medical device manufacturers will pay an excise tax of approximately 2.3% on all medical devices sold, regardless of device class or company size.
Rep. Paulsen's bill was cosponsored by 41 additional representatives from both sides of the aisle, and companion legislation was introduced in the Senate by Orrin Hatch (R-UT). The Minnesota Congressman introduced similar legislation in the last Congress, stating that the device tax would "stifle growth, innovation and access to the life-saving technologies U.S. device companies produce."
The House has already targeted healthcare reform more broadly, voting last week to repeal the entire program; that vote is expected to remain largely symbolic, given the unlikelihood that the Senate would pass similar legislation.
