Rokita Sends Letter to House Leadership Urging Repeal of Medical Device Tax

Statement

Today Rep. Todd Rokita and 74 co-signers sent a letter to Speaker John Boehner, Majority Leader Eric Cantor, Majority Whip Kevin McCarthy and Ways and Means Chairman Dave Camp urging action on H.R. 436, the Protect Medical Innovation Act of 2011, legislation to repeal the medical device tax created as part of Obamacare and scheduled to take effect in January 2013:

"Obamacare contains a myriad of job-killing taxes and regulations that will weaken our economy and stifle medical innovation and quality of care. The medical device tax is among the most egregious examples.

This onerous tax, which companies are required to pay regardless of whether they even make a profit, is bad policy driven solely by the need for revenue to fund Obamacare without regard for the severe ramifications for consumers and health innovators.

Action is needed immediately to repeal this tax. Companies plan over the long-term. With this tax on the near horizon, not only will companies be discouraged from investing in research to create the life-saving technologies of the future, they will be forced to consider reducing their workforces in order to survive. At a time the economy continues to struggle, Congress needs to protect jobs and innovation by passing H.R. 436 and repealing the medical device tax."

H.R. 436, sponsored by Representative Erik Paulsen of Minnesota, would repeal the medical device tax. The medical device tax will cost device manufacturers $2.2 billion annually. On Friday, February 3, the IRS released a proposed rule for implementation of the medical device tax.

Source