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Public Statements

Paulsen, Kind Introduce Medical Device Tax Repeal Bill

Press Release

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Date:
Location: Washington, DC

Representative Erik Paulsen (R-MN) and Representative Ron Kind (D-WI), today introduced H.R. 523, the Protect Medical Innovation Act, bipartisan legislation aimed at repealing the 2.3 percent excise tax on medical device innovation. Rep. Paulsen and Rep. Kind introduced the legislation in the House with a bipartisan group of 175 original cosponsors. Companion legislation will soon be introduced in the U.S. Senate by Utah Senator Orrin Hatch (R-UT) and Minnesota Senator Amy Klobuchar (D-MN).

"Placing a new tax on the backs of U.S. medical innovators and entrepreneurs who employ more than 400,000 Americans is not a prescription for economic growth or job creation," said Rep. Paulsen. "In fact, companies have already laid off thousands of employees as a result of this onerous new tax, and more jobs will be lost now that this tax is in effect. It's not only costing our country jobs and deterring innovation, but more importantly, it will reduce patient access to cutting edge medical products and treatments that save lives."

"Repealing the medical device tax eliminates barriers to medical innovation, ensuring patients have access to life saving technologies and reduces the burden on tight R&D budgets, spurring job growth in the industry," said Rep. Kind. "Supporting and promoting American manufacturing, innovation, and research and development will increase our economic competitiveness and ensure our economy is built to last."

There are more than 8,000 medical device companies in the United States, employing nearly half a million Americans. An additional tax on manufacturers will not only curtail the ability for firms to grow and hire, but will squeeze R&D budgets, hindering America's place as the leader in exports of medical devices and limiting America's ability to compete in the development of medical technology.

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, currently serves on the House Ways and Means Committee and is co-chair of the Congressional Medical Technology Caucus.

For more information on Rep. Paulsen's work in Congress visit www.paulsen.house.gov.


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