WASHINGTON, D.C. – In light of the growing challenges facing the industry, the State Medical Technology Alliance, a network of state and regional associations of medical device manufacturers, and MichBio is urging Congress to repeal the medical device tax.
Repealing the $30 billion medical device tax will protect and create highâ€wage American jobs, encourage investment in medical technology, and maintain our global competitive leadership. The medical technology industry is not only critical to quality health care, diagnostics, and device manufacturing but to the creation of new jobs.
Repealing this tax on innovation will allow America’s medical device developers, who employ two million workers nationwide, to invest in the creation of new highâ€wage positions and maintain America’s global leadership in new medical technology.
“SMTA commends Congress for addressing this important issue. With passage of this vote, we can preserve as many as 40,000 jobs and continue to invest in new medical technology,” said Stephen Rapundalo, PhD, president and CEO of MichBio, and chair of the State Medical Technology Alliance.
“At a critical time for the U.S. economy, the new tax runs counter to our goal of domestic economic growth. The STMA urges Congress to end the medical device excise tax,” added Dr. Rapundalo.
MichBio is Michigan’s statewide, nonâ€profit industry association that represents the medical devices and other bioscience sectors. With well over 200 medical device and equipmentâ€related companies in the state, including some Fortune 500 businesses, the sector is integral to Michigan’s economy.
“Unfortunately, [the impending device tax] has meant job layoffs and downsizing, along with the consideration of moving manufacturing operations offâ€shore. The medical device tax is a jobâ€killer for Michigan, and the US, and will only ensure that this sector of the bioâ€industry will lose its competitive edge,” stated Rapundalo.
For more information, visit www.michbio.org.