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Public Statements

Pete Sessions: Medical Device Tax Repeal Protects American Jobs and Innovation

Statement

By:
Date:
Location: Washington, DC

U.S. Congressman Pete Sessions (R-Dallas), a Member of House Republican Leadership, today released the following statement in response to the passage of the Health Care Cost Reduction Act, which repeals a 2.3 percent excise tax on the sale of medical devices included in ObamaCare:

"The medical device industry provides our nation with innovative health care services, as well as much-needed jobs for hardworking Americans. ObamaCare's onerous medical device tax has already caused job loss in this industry, and its implementation in 2013 is anticipated to cause more workers to be laid off -- including more than 16,000 people in the state of Texas.

"Medical device companies will be forced tighten their budgets, reducing their investment in research and development, or pass the cost of the tax onto the consumers through higher insurance premiums and device prices. To make matters worse, American medical device companies have started planning to move to overseas markets that do not impose the regulatory and tax burdens they endure in the U.S. OsteoMed, a 20 year-old surgical device manufacturer based in the 32nd Congressional District, wrote me a letter highlighting several serious concerns with this tax and explained that they have "already started to effectively trade U.S. jobs for overseas positions as a direct result of the medical device tax and other governmental involvement.'

"The ability of our nation's businesses to grow and compete in the global marketplace depends on their capacity to innovate. To get people back to work and to empower American ingenuity, I will continue to stand up for job creators by voting for common-sense policies that reduce their tax burden and bureaucratic red-tape. I urge President Obama and Senate Democrats to join our efforts to grow jobs in the U.S. and empower this vibrant industry."


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