Ayotte Backs Common Sense Proposal To Reopen Government, Repeal Medical Device Tax

Press Release

U.S. Senator Kelly Ayotte (R-NH) announced today that she's backing a common sense plan to immediately reopen the federal government and repeal the onerous medical device tax - which 79 senators voted in favor of repealing earlier this year. Ayotte has joined with Senators Susan Collins (R-ME) and Lisa Murkowski (R-AK) in backing a proposal that would fund the government for six months, repeal the medical device tax, and provide federal agencies with greater flexibility to fund priorities under sequestration, subject to congressional oversight.

"Both sides need to work together to immediately end the government shutdown," said Senator Ayotte. "This common sense proposal will reopen the government while also achieving the bipartisan goal of repealing the medical device tax, which members of both parties strongly oppose. The plan also includes a bipartisan proposal to give federal agencies greater flexibility to fund priorities under sequestration."

Ayotte continued: "The Collins-Murkowski-Ayotte plan incorporates proposals that both parties have supported. With the President and congressional leaders having failed to end the shutdown, the responsible plan we've put down on paper will open government and move us past the current stalemate."

During consideration of the budget resolution earlier this year, the Senate voted 79 to 20 to approve a bipartisan measure aimed at repealing the medical device tax, which took effect on January 1 as part of Obamacare.

COLLINS-MURKOWSKI-AYOTTE THREE-POINT PLAN

* Fund government at an annual rate of $986 billion for six months.

** Repeal the Medical Device Tax. The Collins-Murkowski-Ayotte plan would repeal with an offset the Affordable Care Act's 2.3 percent excise tax on the sales of medical equipment such as pacemakers and defibrillators. According to industry estimates, this $30 billion tax will cause the loss of as many as 43,000 domestic jobs, stifle innovation, and drive up the cost of health care since the tax will be passed on to consumers.

* Provide Federal Agencies with Greater Flexibility to Fund Priorities. The Collins-Murkowski-Ayotte plan would provide federal agencies with flexibility to set priorities and mitigate the impact of automatic spending cuts imposed by sequestration. The proposal would also ensure appropriate Congressional oversight of these decisions by requiring agencies to submit their spending proposals to the House and Senate committees of jurisdiction before implementing these decisions.

AYOTTE EFFORTS TO REPEAL MEDICAL DEVICE TAX

For over two years, Senator Ayotte has led Senate efforts to repeal the nearly $30 billion medical device tax. In visits to medical device companies across New Hampshire, Ayotte has heard firsthand how the tax will stifle innovation, cost jobs, and increase costs for consumers. Earlier this year, she helped reintroduce the Medical Device Access and Innovation Protection Act (S. 232) to repeal the tax, and she cosponsored similar legislation during the last Congress. In recent floor speeches Senator Ayotte highlighted the medical device tax repeal as an area of common ground that could end the shutdown.

Medicare's chief actuary has estimated that the medical device tax will increase national health care costs by $18.2 billion in 2018. A 2011 study estimates that the tax could result in $3.5 billion in lost wages. New Hampshire is home to about 50 medical device companies employing nearly 3,500 people.

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