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Medical Device Tax Already Costing Jobs as Health Care Reform Marks Anniversary

Friday, March 23, 2012  
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Initial estimate of a $20 billion tax already ballooned to $30.5 billion

WASHINGTON, DC – While the 2.3% medical device tax isn’t scheduled for implementation until 2013, its impact is already being felt across the country on the two year anniversary of it being signed into law as a part of the Affordable Care Act. MDMA, the leading voice in opposing the device tax, reiterated its commitment to a full repeal, and noted the growing coalition working to do so.

"MDMA said from the beginning that the device tax would hamper job creation and patient care, and unfortunately we are already seeing this play out as companies plan for what is really a tax on innovation,” said Mark Leahey, President and CEO of MDMA. "As the voice of small and innovative medical technology entrepreneurs, we know of many companies who will be paying more in taxes than they earn in profits starting in 2013.”

Organizations such as the U.S. Chamber of Commerce, the National Association of Manufacturers (NAM), the National Federation of Independent Business (NFIB), the National Venture Capital Association and others have joined MDMA’s efforts to push for repeal. Leahey noted that the bipartisan support to repeal the medical device tax in Congress is recognition of how important it is for the United States to retain our leadership position in this dynamic industry.

"MDMA and our members remain committed to repealing this onerous provision of health care reform,” Leahey added. "This issue presents a clear opportunity for elected officials to support innovation and empower America’s entrepreneurs to improve patient care and create great jobs.”