Representative Erik Paulsen's legislation to repeal the new $29 billion excise tax on medical devices cleared a legislative hurdle today when it was overwhelmingly approved by the Ways & Means Committee, the chief tax writing committee, on a vote of 23 - 11. The Protect Medical Innovation Act would repeal the 2.3% excise tax levied on American device companies in the new healthcare law that is set to take aim in less than seven months. The legislation is expected to be on the House floor next week for a vote.
Shepherding the legislation through the Ways and Means Committee, Representative Paulsen noted, "Our country is a leader in medical technology innovation. But this new excise tax would force many companies to lay off workers, move jobs overseas, or worse yet, close their doors altogether. Today, a bipartisan group of representatives took a stand to protect American innovators from a disastrous tax on an industry that accounts for over 423,000 jobs in our country. I appreciate the support from my colleagues on Ways and Means and look forward to seeing its successful passage on the House floor next week."
Also today, the Ways and Means Committee passed two other pieces of legislation to improve health savings accounts and flexible spending accounts. Rep. Paulsen is a co-sponsor of both, and also introduced similar legislation last year.