Topic: medical device tax
With the signing into law of the latest federal spending deal, the long-term specter of a 2.3% excise tax on medical devices has been banished.
A medical device tax that has caused years of consternation and created a political hot potato could come back into effect on New Year’s Day.
The House voted to repeal the 2.3% excise tax on medical devices that industry has railed against for years, following a series of postponements.
Medical device manufacturers are now due to start paying the tax in 2020 unless they succeed in getting it scrapped for good.
Senators Elizabeth Warren and Ed Markey, both Democrats from Massachusetts, unveiled legislation that would eliminate excise tax on medical devices.
The failure to stop the tax means manufacturers must report sales to the IRS and pay 2.3% on revenues generated by products covered by the levy.
The medical device excise tax cost the industry nearly 29,000, or 7.2%, of its jobs, according to an AdvaMed analysis of Department of Commerce figures.