Chris Delporte12.22.09
A proposed amendment to delay the start date of the medical device tax provision to 2013 as well as implement a tiered system for smaller companies was left out of the Senate's healthcare reform bill.
The amendment was introduced on Dec. 14 by U.S. Sens. Amy Klobuchar (D-Minn) and Evan Bayh (D-Ind.). The bill’s other sponsors include John Kerry (D-Mass.), Al Franken (D.-Minn.), Herb Kohl (D.-Wis.), Debbie Stabenow (D.-Mich.) and Kirsten Gillibrand (D-N.Y.).
Under the proposed amendment, companies reporting less than $100 million in annual revenues would be exempt from the tax. Companies with between $100 million and $150 million in yearly revenue would pay an excise tax on 50 percent of their revenues. Companies with more than $150 million in annual sales would pay an excise tax on 100 percent of their revenues. If approved, the amendment would also make the excise tax tax-deductible.
Though the complete measure was not adopted as part of the Senate bill, the start date of the tax was pushed back slightly to 2011.
The Senate is on track for a final vote on Christmas Eve on whether to approve the massive healthcare reform bill, which President Obama has made his top domestic priority. A procedural vote that took place early Monday virtually ensures the bill's final approval by the chamber. Following Senate passage, the legislation then would be be merged with the version in the House of Representatives, which are expected to be tough negotiations.
A final bill requiring approval from both chambers would not be completed until after Congress returns from its holiday break in January.
The amendment was introduced on Dec. 14 by U.S. Sens. Amy Klobuchar (D-Minn) and Evan Bayh (D-Ind.). The bill’s other sponsors include John Kerry (D-Mass.), Al Franken (D.-Minn.), Herb Kohl (D.-Wis.), Debbie Stabenow (D.-Mich.) and Kirsten Gillibrand (D-N.Y.).
Under the proposed amendment, companies reporting less than $100 million in annual revenues would be exempt from the tax. Companies with between $100 million and $150 million in yearly revenue would pay an excise tax on 50 percent of their revenues. Companies with more than $150 million in annual sales would pay an excise tax on 100 percent of their revenues. If approved, the amendment would also make the excise tax tax-deductible.
Though the complete measure was not adopted as part of the Senate bill, the start date of the tax was pushed back slightly to 2011.
The Senate is on track for a final vote on Christmas Eve on whether to approve the massive healthcare reform bill, which President Obama has made his top domestic priority. A procedural vote that took place early Monday virtually ensures the bill's final approval by the chamber. Following Senate passage, the legislation then would be be merged with the version in the House of Representatives, which are expected to be tough negotiations.
A final bill requiring approval from both chambers would not be completed until after Congress returns from its holiday break in January.