Wednesday, February 6, 2013

Calls for repeal of onerous medical device tax in Affordable Care Act

WASHINGTON, D.C. – In an effort to save Hoosier jobs, Congresswoman Jackie Walorski (IN-02) today became an original co-sponsor of the Protect Medical Innovation Act (H.R. 523). This bill will eliminate the 2.3 percent tax on the sale of medical devices, which went into effect on January 1, 2013 as part of the President’s Affordable Care Act.

“Indiana is a global leader in medical device innovation, creating thousands of good-paying Hoosier jobs for Second District families, especially in Kosciusko County and the Michiana area,” said Walorski. “The enforcement of this onerous tax is simply counterproductive. It severely hinders the advancement of medical device companies and must be repealed to prevent further damage to our economy.”

Medical device manufacturers provide approximately 20,000 jobs in Indiana, with over 50,000 additional jobs directly related to the medical technology industry. Some Indiana companies have already warned patients of increasing prices, putting upcoming projects on hold due to the medical device tax. Similar legislation already passed the House in July 2012 with overwhelming bipartisan support, but stalled in the Senate and was never signed into law.

Walorski also announced her support for the Healthcare Tax Relief and Mandate Repeal Act, repealing the individual and employer health insurance mandates in the President’s Affordable Care Act. According to the Congressional Budget Office, the individual mandate will increase taxes on American families over the next decade by an estimated $55 billion, with an additional $117 billion in taxes on businesses from the employer mandate.

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