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Medical-Device Makers Seek Tax Break

Manufacturing Group | November 20, 2012

About 50 industry executives met with members of Congress pushing to repeal a 2.3% excise tax, effective next year.

Medical-Device Makers Seek Tax Break

Executives in the medical device industry are calling on Washington to repeal a 2.3% excise tax on medical device manufacturers, effective at the beginning of next year, which could result in research cut backs and layoffs.

About 50 executives of medical device makers met with members of Congress and aides last week, said Dan Moore, chairman of the Medical Device Manufacturers Association, according to Poststar.com.

He also says the best the industry can expect in the near future is delaying the tax increase, which would help fund programs in President Obama’s health care reform plan, says Poststar.com.

U.S. Rep. Bill Owens, D-Plattsburgh, who cosponsered a bill to repeal the tax in June, concurs with Moore about delaying, but says Congress could repeal the bill when it discusses tax reform in early 2013.

Owens says medical device manufacturers would not have to pay the tax until the end of March, something Moore disputes.

“When the device tax takes effect on Jan. 1, the draft says that we will be paying that every couple of weeks. So we don’t have until the end of the first quarter,” he says, according to Poststar.com.
 

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