Survey Shows Return of Medical Device Tax Will Cause Job Losses
In July 2018, the House of Representatives voted to permanently repeal the medical device tax. However, the Senate did not move forward with any action, and the two-year moratorium on the 2.5% excise tax is scheduled to end on December 31.
“A $20 billion tax increase on the industry will have serious consequences on employment and investment,” said Scott Whitaker, president and CEO of AdvaMed, in a news release. “The last time this tax was in effect, we saw nearly 29,000 jobs lost, and we could face even greater losses if Congress does not stop this tax from returning.” This week AdvaMed released some details of a recent survey:
- 67% of the companies surveyed said they were worried that the device tax would trigger more layoffs at their companies
- 83% say the device tax would lead to a reduction in R&D spending
According to the U.S. Department of Commerce, between 2012 and 2015, the U.S. medtech industry lost 28,834 jobs—a 7.2% decrease—most of which occurred in 2014, when the industry lost 27,022 positions.
Related Articles
-
It’s good news for device companies, but industry associations and stakeholders are still seeking a permanent solution.
-
The Senate vote is good news for industry, which has fought against the tax for years.
-
The vote is a step towards getting rid of the tax for good.
-
Will the return of the 2.3% excise tax change how medtech companies do business?
