Congresswoman Mia Love is pleased that her request to relieve the Medical Technology Industry of the job-killing Medical Device Tax has been passed into law, as part of the vote to approve a Continuing Resolution (CR) for the Federal budget.
In a letter, Rep. Love earlier asked Speaker Paul Ryan to eliminate the 2.3% U.S. Medical Device Excise Tax. The tax places serious impacts and burdens on Utah medical device manufacturers like Merit Medical, BD, Edwards Lifesciences, Integra, and the members of BioUtah.
Those companies manufacture and sell medical devices like catheters, stents, and heart valves, syringes and needles. The Medical Imaging and Technology Alliance predicted the tax would have taken a $20 billion bite out of the industry in the next decade.
“This tax hurts employees, hurts the broader economy, and hurts consumers who rely on the quality of life that comes from investment in innovation,” Congresswoman Love said.
Rep. Love added: “I refuse to stand by and watch the negative consequences of this tax and the unfair burden it presents to Utah companies that employ thousands of people in our state.”
House Speaker Paul Ryan said: “I’m grateful to Rep. Mia Love for shining a light on the reinstated Medical Device Tax. Her relentless focus on this issue will help prevent the medical technology industry and its 400,000 employees from being hit hard by this tax. By addressing it this week, we are continuing our mission of reducing taxes and making the U.S. competitive and more attractive to business.”
Medical device industry leaders offered these comments:
From Kelly Slone, President and CEO, BioUtah: “BioUtah and its Utah-based members of the life sciences industry is pleased that passage today of a revised Continuing Resolution to keep the government funded until February 8 includes a critical 2-year delay of the medical device tax. We’re grateful to Congresswoman Mia Love for pushing to get this delay over the finish line. Now, instead of preparing to pay the IRS, medical device companies in Utah can continue to focus on innovative technologies that save lives and drive economic growth. And, together, we’ll keep working to put an end to this tax altogether.”
From Fred P. Lampropoulos, Merit Medical Chairman and Chief Executive Officer: “We appreciate Rep. Love and our other elected officials who are concerned about the medical device industry, particularly Utah companies like Merit Medical. Rep. Love understands that this tax negatively impacts many companies by reducing the number of jobs, constricting research and development, and cutting back on the innovative life-saving products we can develop and provide.”
From Tom Polen, president of BD: “We are grateful for Rep. Love’s strong leadership in the effort to repeal the medical device tax. The two year suspension is a welcome reprieve from the tax and we look forward to working with her to ultimately achieve full repeal.”
From Joseph Rolley, Vice President, Reimbursement & Market Access, Integra LifeSciences: “Integra LifeSciences is thankful to Congressional leaders for including a two-year suspension of the medical device tax in the Continuing Resolution. We appreciate Congresswoman Love’s strong advocacy on this issue. Relief from the device tax will allow our company to invest in additional opportunities to help address the needs of patients. It is so important that Congress act now to provide immediate relief as it works to fully repeal the tax.”