The medtech industry had long been concerned the tax would negatively impact their bottom lines and research budgets, as well as limit jobs. A Tax Foundation report issued in November showed the device tax “would result in a decline of 21,390 full-time equivalent jobs and a reduction in GDP of $1.7 billion.”
Over the years, the tax had been temporarily suspended through Congress. Until now, there has never been a full repeal.
“This is a great day for American patients, American jobs, and American innovation: The medical device tax is officially history,” stated AdvaMed president and CEO Scott Whitaker. “With the end of this burdensome tax, the U.S. medtech industry can do what it does better than anyone else in the world: develop life-changing innovations that save and improve patients’ lives, and create high-paying, high-tech jobs to keep the American economy booming. We thank President Trump and his administration for their strong support of medical innovation and for their leadership as we worked with Congress to repeal this onerous tax."
“Over ten years ago MDMA and our members engaged Congress to stop the medical device tax from punishing patient care and job creation, and today marks the culmination of this important work,” declared Medical Device Manufacturers Association (MDMA) president and CEO Mark Leahey. “MDMA thanks Majority Leader McConnell, Minority Leader Schumer, Speaker Pelosi and Minority Leader McCarthy for their bipartisan work to put an end to this tax on innovation. Now that both chambers of Congress have passed a repeal of the device tax, we look forward to the president’s signature so that America’s innovators can continue to lead the world in developing the cures and therapies of tomorrow.”