U.S. Senator Todd Young (R-Ind.) Thursday sent a letter to President Donald Trump urging him to push Congress to act quickly on the onerous medical device tax. The U.S. House of Representatives could vote on a medical device tax repeal bill as early as next week. If the bill passes the House it will head to the Senate next.
“In the coming days and weeks, both the U.S. House of Representatives and the U.S. Senate have an opportunity to pass legislation that will prevent this looming tax hike. I urge you to seize this moment and continue your leadership by pushing Congress to repeal the onerous tax on medical innovation once and for all,” Senator Young wrote in the letter. “Every day this tax remains, we continue to slow medical advancements and hinder patient care, job creation, and investments. Patients depend on cutting edge, life-saving technologies in order to live longer, healthier lives. I remain committed to working together with you to bring an end this reckless innovation tax.”
To read the full letter, see below or click here.
July 19, 2018
President Donald J. Trump
The White House
1600 Pennsylvania Avenue, N.W.
Dear Mr. President:
Thanks to your leadership, American families and job creators are experiencing real tax relief for the first time in decades. The Tax Cuts and Jobs Act delivered on your promise to take action on our outdated tax code, allowing hardworking American workers to keep more of what they earn while enabling job creation and investment. I also applaud your “Pledge to America’s Workers” that will bolster opportunities and wage growth. However, in order to continue advancing our economy, we must address the threat of the medical device tax that continues to negatively impact innovation and investments in the workforce.
In the coming days and weeks, both the U.S. House of Representatives and the U.S. Senate have an opportunity to pass legislation that will prevent this looming tax hike. I urge you to seize this moment and continue your leadership by pushing Congress to repeal the onerous tax on medical innovation once and for all.
As you know, the medical device tax was created in the Affordable Care Act as a way to help pay for the law’s insurance expansion. This misguided provision placed a 2.3 percent excise tax on numerous devices – from lifesaving pacemakers to surgical gloves and hospital beds.
For the last eight years, both sides of the aisle have pledged support for repealing this burdensome tax through words and taking non-binding votes, which has only resulted in more uncertainty. The U.S. House of Representatives is expected to take action by voting on a repeal bill as early as next week. The time is now for the U.S. Senate to act by passing a stand-alone repeal bill with limited debate and no amendments. With so much purported support in the U.S. Senate for passing a medical device tax repeal bill, the necessary 60 cloture votes on a repeal bill should be guaranteed – unless partisan political games get in the way.
Patients across the country who rely on American innovation to treat conditions once thought untreatable ultimately suffer the burden of this tax. As our population continues to age, innovative medical technologies will be needed for patients suffering from cancer, heart disease, and other debilitative health conditions. But, because of the uncertainty of repeal, investment into medical device research and development will continue to be scaled back, denying patients potential lifesaving technologies.
American families will also feel the burden of reduced job creation and investment. According to figures from the U.S. Department of Commerce, the medical device industry lost nearly 29,000 American jobs when the tax was in effect. At a time when factories have closed and jobs in rust belt states have been sent overseas, medical device manufacturing jobs have been a lifeline for hardworking Americans and their families. We need to protect the more than 375,000 Americans employed in the medical device industry, including hundreds of small businesses, from further job losses.
Every day this tax remains, we continue to slow medical advancements and hinder patient care, job creation, and investments. Patients depend on cutting edge, life-saving technologies in order to live longer, healthier lives. I remain committed to working together with you to bring an end this reckless innovation tax.
Sincerely,
