Maffei's Bill Fully Repeals Medical Device Tax and Fully Offsets the Cost
Representative Dan Maffei (D-NY) introduced a bill today to fully repeal the medical device excise tax in the Affordable Care Act. Maffei's prosed legislation "The Medical Device Tax Elimination Act" fully repeals the medical device excise tax and fully offsets the cost by repealing current tax breaks for big oil and gas companies. Maffei's legislation would end the medical device tax in a responsible way, protecting this important industry which employs hundreds of Central New Yorkers.
"Today I introduced the Medical Device Tax Elimination Act which fully repeals the medical device excise tax in the Affordable Care Act," said Rep. Dan Maffei. "I strongly opposed the medical device tax when the Affordable Care Act was passed. At that time I worked directly with local medical device manufacturers like Welch-Allyn to address concerns they had and worked with them to fight the tax. During the campaign I said that if elected, I would continue to fight to repeal the medical device tax. This bill fully repeals the tax. I will be urging my colleagues in Congress to work together to pass this bill and repeal the medical device tax."
"MedTech fully supports any and all efforts to repeal the new, nearly $30 billion tax on medical devices," said Jessica Crawford, President of MedTech. "This tax is damaging a highly innovative industry that creates jobs and fuels this country's economic growth. Repealing the medical device tax will ensure that device makers can continue developing lifesaving medical treatments for patients all over the country, and it will save jobs in every state. By introducing this bill, Congressman Maffei shows the kind of leadership that more policymakers would do well to emulate."
The bill's offset for the repeal of the medical device excise tax repeals three costly tax incentives that subsidize the big major integrated oil companies (Exxon-Mobil, Chevron, Shell, and BP) to produce oil -- something they would be doing anyway.
These tax incentives are:
1. Section 199 deduction for domestic production activities, meant to subsidize the manufacturing sector, but which has been subsidizing highly profitable oil production. This is projected to save $9 billion from 2014 - 2023.
2. "Last-In, First Out" (LIFO) method of inventory accounting that lets oil companies deduct the cost of oil most recently added to inventories (which costs the most when oil prices are high) from their taxable income. This is projected to save $14 billion from 2014 - 2023.
3. "Dual capacity taxpayer" rules that create a subsidy for foreign oil production by allowing oil companies to claim foreign tax credits against royalties paid to foreign governments for the right to extract oil (a cost of doing business for which a tax deduction rather than a tax credit is more appropriate). This is projected to save $6 billion from 2014 - 2023.