Saturday, August 2, 2014
Many people wonder why the medical-device excise tax still exists. The tax is universally despised since it is an Obamacare revenue raiser, taking 2.3 percent off the sales of medical devices in the United States. Outside liquor and tobacco, many Americans do not suffer excise taxes, which are imposed on gross sales, notwithstanding of a company’s profitability.
Repealing the excise tax has bipartisan support in both the House and Senate. Since the tax took effect in 2013, research has confirmed that domestic sales were suffering for medical devices. For example, Johnson & Johnson’s medical device and diagnostic sales were down 1.5 percent in the U.S. in the first half of 2014. In order to protect American jobs and medical innovation, there needs to be a new approach.
See John Graham, Repealing the Medical-Device Excise Tax: Next Steps, Forbes, Aug. 1, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.