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Ayotte: Administration's Continued Push for Medical Device Tax Will Cost New Hampshire Jobs


Location: Washington, DC

U.S. Senator Kelly Ayotte (R-NH) today reaffirmed her commitment to repealing a 2.3 percent excise tax on medical devices as the Internal Revenue Service (IRS) announced a regulation for implementation of the new tax, which is included in President Obama's health care law. In visits to medical device companies across New Hampshire, Ayotte has heard firsthand how the tax will stifle innovation and cost jobs.

"This is a tax on innovation that is going to hurt companies that are developing new medical products and creating jobs," said Senator Ayotte. "Medical device manufacturers have told me this tax will make it harder for them to invest and grow, and could result in jobs being lost overseas. At a time when our country needs good-paying, sustainable jobs, the Obama administration's continued push for a medical device tax makes no sense. I will continue my efforts to repeal this tax and Obamacare."

Under the Patient Protection and Affordable Care Act, medical devices ranging from bed pans to operating room tools will face a 2.3 percent excise tax increase that will cost $28.5 billion over 10 years to fund the $2.6 trillion health care law. New Hampshire has about 50 medical device companies employing approximately 3,800 workers.

Senator Ayotte is a co-sponsor the "Medical Device Access and Innovation Protection Act" (S. 17), which would immediately repeal the new tax. She also is a co-sponsor of S. 192, the "Repealing the Job-Killing Health Care Law Act."

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