U.S. Congress approves 2.3% tax on U.S. medical devices

As per lobby groups from medical device makers, the re-imposition of the levy stiffles will once again stifle growth in the sector and slash jobs.

Despite opposition from the medical manufacturing industry and a section of U.S. lawmakers, the U.S. Congress approved a 2.3% tax on the sale of medical devices, after a two year respite.

Earlier, from January 2013, pacemakers, catheters and other healthcare products had attracted an excise tax, among several other fees and taxes, to help fund the Affordable Care Act, also known as Obamacare, in order to garner $30 billion in the next 10 years.

However in 2015, following a strong representation from the medical industry lobby groups as well as harsh criticism from political parties, the U.S. Congress had suspended the levy.

The suspension however expired on New Year’s Day after unsuccessful last-ditch efforts by Republicans.

The tax remained in Republican-crafted tax legislation signed by President Donald Trump on December 22.

Supporters of the levy justify it saying it helps provide health insurance to millions of previously uninsured Americans.

Critics however say, the levy has slashed jobs and has stifled the medical industry and have vowed to keep fighting it.

“The tax has had a significant negative impact on medical innovation and has resulted in the loss or deferred creation of jobs,” said the Advanced Medical Technology Association lobbying group on its website.

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Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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