News | March 22, 2013

Medical Device Manufacturing Coalition Applauds Passage of Medical Device Tax Repeal Amendment

Vote underscores bipartisan support for device tax repeal efforts

March 22, 2013 β€” The Medical Imaging and Technology Alliance (MITA), Advanced Medical Technology Association (AdvaMed) and the Medical Device Manufacturers Association (MDMA) applauded the adoption of an amendment to the Fiscal Year 2014 Senate Budget Resolution that expresses support for repeal of the medical device tax. The amendment passed with 79 votes.

"Momentum is clearly growing in Congress to repeal the medical device tax as senators continue to hear from their constituents that the impact is real β€” the tax is slowing economic growth and costing thousands of jobs," said Gail Rodriguez, executive director of MITA. "MITA encourages Congress to prevent further job loss and protect essential research and development by promptly repealing this harmful tax."

"Bipartisan majorities in both the House and Senate have now voted to repeal the device tax. The reasons behind mounting support to repeal the tax are clear: Across the country, this tax is cutting high-quality jobs and investments in tomorrow's treatments and cures at companies large and small. We encourage leaders in Congress and the administration to seize on this momentum and act to repeal this harmful tax," said Stephen J. Ubl, president and CEO of AdvaMed.

"Every day innovators in this dynamic industry are looking at how to improve the quality of life for patients, and the medical device tax is standing in the way of progress and threatening America's leadership position. While we have more work to do, MDMA applauds this important step towards ensuring that the United States remains the global leader in medical technology innovation," said Mark Leahey, president and CEO of MDMA.

The bipartisan amendment was introduced by Senators Orrin Hatch (R-UT) and Amy Klobuchar (D-MN), with co-sponsorship from 21 senators, including Al Franken (D-MN), Pat Toomey (R-PA), Lamar Alexander (R-TN), Kelly Ayotte (R-NH), Richard Burr (R-NC), Robert Casey (D-PA), Dan Coats (R-IN), John Cornyn (R-TX), William Cowan (D-MA), Joe Donnelly (D-IN), Mike Enzi (R-WY), Jeff Flake (R-AZ), Chuck Grassley (R-IA), Kay Hagan (D-NC), John Hoeven (R-ND), Johnny Isakson (R-GA), Mike Lee (R-UT), Lisa Murkowski (R-AK), Jerry Moran (R-KS), Rob Portman (R-OH), James Risch (R-ID), Jeanne Shaheen (D-NH), John Thune (R-SD), Elizabeth Warren (D-MA), Sheldon Whitehouse (D-RI) and Roger Wicker (R-MS).

The American medical technology industry is responsible for and supports nearly 2 million jobs, creating a growing trade surplus and developing the technology essential to advancing patient care in the United States and around the world. With the implementation of the medical device tax, manufacturers have paid an estimated $388,000,000 to the Internal Revenue Service (IRS) so far this year, re-allocating funds that could otherwise be directed toward investment in job creation and research and development, the vendor organizations said.

This legislative effort is the most recent since February 2013, when Hatch and Klobuchar introduced the "Medical Device Access and Innovation Protection Act," which included bipartisan co-sponsorship for the first time.


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