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Mr. RENACCI. Mr. Speaker, I rise today in support of H.R. 436, the Health Care Cost Reduction Act.
Over the past 18 months, the House has been focused on legislation that will help set the table for job creation. This recession has proven more stubborn than previous ones in part because it hits solid, middle class jobs the hardest. The medical technology industry, however, is one area where America remains a global leader in manufacturing. There are more than 35,000 medical technology industry jobs in Ohio alone, well paying jobs too. Unfortunately, the President's health care law wants to punish this industry's success.
His overhaul of the health care industry created a 2.3 percent tax on medical device sales in the U.S., which will be implemented just 6 months from now. As a small business owner myself, I understand this tax will have a huge negative impact on this industry, killing American jobs, slowing medical innovation, and harming America's global competitiveness. That is because this tax is on revenues, not profits.
Some in the Halls of Congress and in this administration who have never worked in the private sector may not realize it, but that is an important distinction. Placing the tax on the revenue side makes it much more costly for small device makers to pay for it because many of them have high revenue levels, but much smaller profit margins. You're taxing them based on how much business they do, not on how much money they make, an idea only career politicians could dream up and attempt to implement.
Over 75 percent of medical device makers are small businesses with fewer than 50 employees. As such, it has been estimated that this tax will lead to somewhere between 15,000 and 50,000 lost jobs. I will not stand idly by while this tax threatens jobs across the country and my home State of Ohio. That is why I stand in strong support of the Health Care Cost Reduction Act, which would repeal this tax. And I thank Representative Paulsen for introducing it. We simply cannot be competitively global when we tax our manufacturers and our small businesses at a higher rate than our foreign competitors tax theirs.
I call on my colleagues from both sides of the aisle to practice some economic common sense and join me in voting to repeal this tax.
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