Congressman Chris Collins (NY-27) is co-sponsoring legislation introduced today to repeal the excise tax on medical devices that was imposed as part of the Affordable Care Act (ObamaCare). Collins says this tax, which took effect the first of the year, will hurt our economy and cost American jobs unless it is repealed.
"This tax may help pay for the implementation of ObamaCare as the administration intended, but it will devastate medical device manufacturing and stifle innovation in America," said Collins. "If this tax stands, people will lose their jobs, it is just that simple. A medical device manufacturer cannot be expected to absorb a 30 percent tax increase on their gross revenue, regardless of profit, and not scale back their business. Congress must come together and act to repeal this tax and protect American jobs and innovation."
There are over 8,000 medical device firms in the United States, employing nearly 423,000 people. A recent study estimates that as many as 43,000 U.S. jobs are at risk now that the tax goes into effect. Western New York is home to several medical device manufacturers, including Moog, Greatbatch, and Gaymar Industries.
"The medical device tax will do nothing but stifle medical innovation and negatively impact American jobs," said Thomas J. Hook, president and CEO of Greatbatch, Inc. "Medical innovation is a key part of our country's economic growth and critical to delivering new life-saving medical devices for patients. "With the leadership of Congressman Collins and other bipartisan Members of Congress, this onerous tax can and should be repealed."
In addition to jobs losses, Collins says patients will suffer because companies will be forced to cut back significantly on Research & Development, limiting the number of new devices entering the marketplace. The U.S. is currently a net exporter of medical devices, but this tax will harm America's position in the global market place and nearly cripple start-up companies that will never be able to afford the additional tax alongside their start-up costs.
This legislation to repeal the excise tax on medical devices has broad support in the House with over 163 co-sponsors.
"While Congress does not agree on much these days, even people on opposite sides of the ObamaCare debate understand the excise tax on medical devices needs to be repealed immediately," said Collins. "Washington needs to support medical innovation and the jobs that come from it instead of penalizing a growing industry that is helping to rebuild our economy, both locally and nationally."