Congressman Gosar Votes to Repeal Obamacare Tax

Press Release

Today, U.S. Congressman Paul Gosar, D.D.S (R-AZ) released the following statement after the House passed the Health Care Cost Reduction Act (H.R. 436). This bill, which Congressman Gosar cosponsored as one of his first actions in February 2011, repeals the medical device tax included in Obamacare. The law states that beginning in 2013, a 2.3% tax will be imposed on the sale of medical devices by manufacturers or importers.

"As our nation faces one of the most trying economic times of our lifetime, I stand appalled that this administration continues to push for tax increases. Taxing job creators, which will ultimately increase the cost of medical supplies to consumers, is the absolute wrong thing to do. I have never and will never vote for a tax increase and am proud to be able to stand against this one," Gosar said.

"In Arizona, the medical technology industry (MTI) is a phenomenal example of a sector creating economic growth. According to a study by the Lewin Group, Arizona's MTI led the nation by contributing over $12 billion in earnings to the state's economy. This robust industry contributes immensely to the state's economic future, and also offers great employment opportunities. The MTI is a national leader in offering its employees high wages and upward mobility. In fact, the Lewin Group study shows that the MTI in Arizona offers its employees an average wage over 50% higher than the statewide average. At a time when too many are out of work or living paycheck to paycheck, we need to do everything possible to encourage job growth - not stifle it with additional tax burdens."

The threat of this tax is already showing negative effects on job growth and innovation nationwide. Studies have estimated that the tax will result in the loss of 43,000 American jobs. In Arizona, over 7,000 people are currently working in the biomedical industry and it is clear that a good deal of those jobs will be at risk.

In addition, H.R. 436 included provisions to rollback some of the restrictions contained in Obamacare on the use of Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA). These tax advantaged accounts are used by millions of Americans to provide for everyday health expenses for themselves and their families in a cost effective way, and Obamacare sought to pay for its expansion of government health care by penalizing these accounts.

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