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MDMA Survey Highlights the Damage Device Tax Reinstatement Would Have on R&D, Jobs & Expansion Plans

Wednesday, October 11, 2017  
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MDMA Survey Highlights the Damage Device Tax Reinstatement Would Have on R&D, Jobs and Expansion Plans

Survey of 117 executives shows the danger in failing to repeal the device tax

 

WASHINGTON, DC – Investments in the cures and therapies of tomorrow would be drastically cut, and a major slowdown in the creation of high tech manufacturing jobs would result if the device tax is reinstated in 2018 according to a new survey conducted by the Medical Device Manufacturers Association (MDMA).

 

“Since MDMA began fighting this disastrous policy in 2009, we have told policy makers that the medical device tax harms patient care and the economy,” said Mark Leahey, President and CEO of MDMA.  “Medical technology innovators have already made difficult decisions as a result of the uncertainty over the device tax, and now is the time to put a permanent end to a policy that the overwhelming majority of Congress agrees is a bad idea.” 

  

The survey included 117 responses from senior executives at some of the United States’ most innovative and entrepreneurial medical device companies.  Notably, 88 percent of innovators would slow down hiring and/or have to eliminate jobs if the device tax is reinstated in 2018.  A previous MDMA survey showed that as a result of the two-year device tax suspension, 70 percent of companies increased hiring and created new jobs.

 

Other top findings of the survey include:

 

  • 83 percent of innovators would have to decrease investments in R&D if the device tax is reinstated

 

  • 77 percent of respondents noted that reinstatement of the medical device tax would cause them to slow and/or stop expansion plans

 

“There continues to be strong bipartisan support to repeal the medical device tax, but time is of the essence.  It hovers like a dark cloud over innovation and job creation, and it is critical that Congress finishes the job,” added Leahey.

 

While the two-year suspension enacted in the 114th Congress is set to expire at the end of 2017, both chambers of Congress have a track record of broad support to repeal the medical device tax.  The House of Representatives voted for a full repeal of the device tax by a veto-proof majority of 280-140 in 2015, and 79 Senators voted in support of repealing the medical device tax in the 113th Congress.

 

To see a summary of the survey, please CLICK HERE.

 

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