Today the House passed the Health Care Cost Reduction Act (H.R. 436) by a vote of 270-146, which would repeal the Obamacare excise tax on manufacturers of medical devices. Congressman Mike Turner last year introduced H.R. 1310 which would repeal the tax on manufacturers of medical devices for first responder. Turner introduced the bill in response to the burdens the tax places on medical device manufacturers in the Third Congressional District and across the nation.
"We've all heard of a cradle-to-grave government, well this is a cradle-to-grave tax. From the incubators used for prematurely born children to the rollers which move caskets, and every item in between you would use to provide care, would be subject to this tax," said Turner.
Beginning in 2013, a 2.3 percent excise tax will be imposed on the sale of medical devices by manufacturers, providers, or importers. This tax will place yet another burden on American businesses, stifling development of innovative life-saving products and costing jobs when our economy is struggling to recover, and will result in higher costs and inferior care for patients. Turner visited Ferno-Washington, Inc. on March 23, 2011 to announce the reintroduction of his legislation. Based in Wilmington, OH the company is the global leader in the manufacture and distribution of professional emergency, mortuary, and healthcare products sold primarily first responders.
"While I was visiting Ferno- Washington, Inc. CEO Joe Bourgraf articulated just how this tax would affect his business. It would drive up the cost of products, discourage budget strained municipalities from investing in new equipment, and stunt the growth of our struggling economy. The company's executives estimate the cost of the tax is equivalent to 23 jobs - jobs states like Ohio cannot afford to lose," added Turner.
Earlier this year, Mound Laser & Photonics Center (MLPC) headquartered in Miamisburg, OH in Turner's District, wrote to Turner about the negative effect of this new tax. MLPC specializes in laser-based micro and nano-fabrication and provides services to a number of markets, including the medical device industry. The firm is a tremendous research and development success story in southwest Ohio, growing from three employees to over forty. The majority of these workers have backgrounds in science and engineering, critical fields our country needs to compete in the global economy. However, MLPC recently scaled back its operations and was forced to lay off 10 employees due to the loss of business from one of its medical device clients.
"As a small business owner working for the medical device industry, I am extremely concerned over the detrimental affects that this unjust tax will have on the future of my company. We have always strived to be a great employer for our workers and community partner for our region, but this new excise tax has forced tremendous uncertainty and delayed investment, which are further unfortunate results of the healthcare reform. This repeal effort is imperative to the continued success of one of America's most solid manufacturing bases--medical manufacturing--and I applaud Congressman Turner for his support on the bill," said Mound Laser & Photonics Center President & CEO Dr. Larry Dosser.