Senator Amy Klobuchar, Representative Erik Paulsen, John Eckberg (Cook Group), Stephen Olgilvie (NuVasive) discuss the medical device tax at the 10x Medical Devices Group Conference on April 29, 2013
Medical device tax: Congressional duo launches tax reform tour
Medtech groups laud Sen. Max Baucus (D-Mont.) and Rep. Dave Camp (R-Mich.) for their U.S. tax reform tour, which the industry hopes may become a vehicle for repealing the 2.3% medical device tax.
Medical device industry lobbying groups rallied behind Sen. Max Baucus (D-Mont.) and Rep. Dave Camp (R-Mich.) as the Congressional duo embarked on a nation-wide tax reform tour, a possible boon to efforts to repeal the medical device tax.
Baucus, who is chairman of the Senate Finance Committee, and Camp, chairman of the House Ways & Means Committee, launched the tour this week with a stop in Minnesota, where they visited the Maplewood headquarters of 3M Co. (NYSE:MMM).
The bipartisan pair showed up in matching outfits, with navy-blue blazers over blue dress shirts and gray slacks, according to some reports. The duo also has a joint “Max & Dave” Twitter account, @simplertaxes, with more than 50 tweets since May 8.
“We really are a team,” Baucus told CM employees during his visit. “We’re just here to listen, to get your thoughts and ideas.”
In response to the Baucus/Camp tour AdvaMed release the following statement:
WASHINGTON, JULY 8, 2013 — /PRNewswire-USNewswire/ — Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), released the following statement in response to tax-writing committee Chairmen Camp and Baucus as they begin their nationwide listening tour in favor of a simpler, fairer U.S. tax code:
“AdvaMed commends the efforts of Ways and Means Committee Chairman Dave Camp (R-MI) and Senate Finance Committee Chairman Max Baucus (D-MT) to advance comprehensive U.S. tax reform to improve America’s competitiveness and rebuild our nation’s economic future. We look forward to working with them as they develop their legislation.
“As they begin their Tax Reform Tour in the Minneapolis-St. Paul, Minnesota area, it is important to note the medical technology industry supports over 35,000 jobs in the state and more than two million jobs nationally. In the context of reforming the tax code to make U.S. business more competitive, repealing the medical device excise tax that went into effect in January is a critical first step to protecting these jobs and ensuring a level playing field for Minnesota and the rest of the U.S. in the global economy.
“America’s current corporate tax structure is a key factor contributing to the decline of the competitiveness of the American medical technology industry. U.S. corporate tax rates are the highest in the world. The U.S. has failed to match competitor nations in positive tax incentives to attract knowledge-based, high-value manufacturing industries like medical technology. The U.S. tax code provides few incentives to invest in the pre-profit start-up companies that are the backbone of the innovation system.
“The device tax makes an already uncompetitive tax system for the medical technology industry far less competitive and threatens our industry’s continued world leadership. It raises the total tax burden for our industry by a whopping 29% – resulting in fewer job opportunities, lower R&D investment to fuel tomorrow’s treatments and cures, and/or higher health care costs.
“Legislative measures to repeal the device tax passed the House last summer and the Senate in March with overwhelming bipartisan majorities. Congress and the President must act now to finish the job and repeal it.”
AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visitwww.advamed.org.
- Repeal the medical device tax (thehill.com)
- U.S. Sen. Baucus’ tax reform committee to detail work (missoulian.com)