Congressman Leonard Lance (NJ-07) said a new report released today by the Advanced Medical Technology Association (AdvaMed) provides further proof that a new 2.3 percent sales tax on medical devices will negatively impact an important New Jersey industry at a time when job creation is paramount.
The report titled, "Employment Effects of the New Excise Tax on the Medical Device Industry," says the new tax on gross sales slated to go into effect in 2013 could mean a nearly 11 percent cut for the U.S. medical technology sector and add $2.67 billion to the industry's annual tax bill. Lance says this tax will have a chilling effect on the Garden State's economy.
New Jersey is home to more than 60,000 medical technology and related jobs -- the sixth highest employment in the Nation. Lance noted that New Jersey's Seventh District includes scores of medical devices companies, including Bard, Baxter, Johnson & Johnson, 3M Health Care, ConvaTec, Roche, Stryker, Varian Medical Systems, Kinetic Concepts, Thoratec and Zimmer Holdings.
"This study comes at a critical time as Congress focuses on job creation," Lance said. "New Jersey is home to more than 60,000 medical technology and related jobs. And while we continue to be a world leader in medical innovation, this onerous tax on innovation could jeopardize the Garden State's leadership position."
Congressman Leonard Lance is one of the leading voices in Congress calling for the repeal of the job-killing provision. He is a lead sponsor of H.R. 436, the "Protect Medical Innovation Act of 2011" which would repeal the excise tax on medical devices. Lance, a member of the House Energy and Commerce Health Subcommittee, has also called for the reform the 510(k) approval process and bringing greater transparency to the regulatory system as two proposals to help the medical technology industry.