Medical device tax: New repeal proposal recoups revenue from oil companies

Congressman Dan Maffei

House Rep. Dan Maffei (D-N.Y.) this week introduced a new bill that seeks to repeal the 2.3% medical device tax, making up for the $30 billion in lost revenue by cutting tax breaks for big oil and gas companies.

The proposed pay-for may to be more popular with Democrats, who previously balked at attempts to recoup lost tax revenue by taking a stronger hand in reclaiming over-paid health insurance tax credits granted to families.

"The bill’s offset for the repeal of the medical device excise tax repeals 3 costly tax incentives that subsidize the big major integrated oil companies (Exxon-Mobil, Chevron, Shell, and BP) to produce oil – something they would be doing anyway," according to a press release from Maffei’s office.

The Congressman called the move a "responsible" measure to protect the medical device industry, which has a large presence in New York. The state is home to companies such as Misonix (NSDQ:MSON), Sirona Dental Systems (NSDQ:SIRO), AngioDynamics (NSDQ:ANGO) and others.  

The repeal bill would make up for the lost medtech tax revenue by eliminating 3 specific oil company tax incentives: a Section 199 deduction for domestic production, a "Last-in, First Out" new inventory deduction and a "dual capacity taxpayer" subsidy for foreign oil production.

New York bioscience and medical technology lobbying group MedTech voiced support for Maffei’s initiative without endorsing the specifics of the plan.

"MedTech fully supports any and all efforts to repeal the new, nearly $30 billion tax on medical devices," MedTech president Jessica Crawford said in prepared remarks. "By introducing this bill, Congressman Maffei shows the kind of leadership that more policymakers would do well to emulate."

In proposing his new "Medical Device Tax Elimination Act" Maffei is building upon years of involvement with the medical device industry, and he’s making good on a campaign promise.

"I strongly opposed the medical device tax when the Affordable Care Act was passed.  At that time I worked directly with local medical device manufacturers like Welch-Allyn to address concerns they had and worked with them to fight the tax," Maffei said in prepared remarks. "During the campaign I said that if elected, I would continue to fight to repeal the medical device tax.  This bill fully repeals the tax."

"I will be urging my colleagues in Congress to work together to pass this bill and repeal the medical device tax," he added.

Earlier this week a bipartisan Senate duo proposed an unrelated amendment that also aimed to help off-set some of the cost of repealing the 2.3% medical device sales tax.

Senators Amy Klobuchar (D-Minn.) and Orrin Hatch (R-Utah) offered a non-binding amendment that would establish a deficit-neutral reserve fund, which is to be offered alongside the Senate budget resolution that’s already under negotiations.

RSS From Medical Design & Outsourcing

  • Herrmann Ultrasonics, Inc. announces its 25 Year Anniversary
    In 1990, Thomas Herrmann, the son of Walter Herrmann, who founded Herrmann Ultraschalltechnik GmbH in 1961, established Herrmann Ultrasonics Inc. in the Chicago area. Hermann Ultrasonics, Inc. is proud to recognize a milestone year in observance of their 25th anniversary. Herrmann Ultrasonics has been focused on providing ultrasonic welding technology for various markets such as […]
  • Consumer Health Applications receive the most attention today, but the future is elsewhere
    Wearables for health fall into a wide range of technologies, functions, use cases and over-arching regulatory frameworks that developers and prospective entrants have to understand in order to effectively compete. Using an underlying taxonomy for human health, we establish a health-focused wearables taxonomy around three major categories—applications, use cases, and form factors—the three areas critical […]
  • Paralyzed men move legs with new non-invasive spinal cord stimulation
    Five men with complete motor paralysis were able to voluntarily generate step-like movements thanks to a new strategy that non-invasively delivers electrical stimulation to their spinal cords, according to a new study funded in part by the National Institutes of Health. The strategy, called transcutaneous stimulation, delivers electrical current to the spinal cord by way […]
  • SCHURTER’s new power entry module offers IP 54 protection with V-Lock cord sets
    SCHURTER is pleased to announce, that its power entry module, series 5707, now offers IP 54 protection with V-Lock cord sets at the power input, in addition to IP 65 protection to the equipment. The sealed module is ideal for use in medical equipment exposed to leaks, drips and spills, as well as equipment subject […]
  • GlobTek presents its latest level VI AC/DC adapter and connverter
    T-43086-WWVV-X.X-Q Model is an addition to GlobTek’s Level VI compliant GT-43086 family and represents GlobTek’s 6 Watt wall plug-in series of AC/DC adapters (power supplies and chargers) with International Interchangeable blades. GlobTek’s changeable input blade system with individual field replaceable input plugs, including: North America and Japan NEMA 1-15P, Australian, UK BS 1363, European CEE […]
  • Sanmina’s familiarity with FDA gets skin treatment product to market fast
    The medical market for cosmetic devices is booming. However, quickly launching new products to meet demand is becoming more challenging because device manufactures face increased regulatory scrutiny. To help meet regulatory requirements, aesthetic and other medical-device OEMs are partnering with electronics manufacturing services (EMS) companies that also offer expertise with the FDA filings necessary to […]
  • Fluid connectors and quick disconnects for IVD equipment from CPC
    Colder Products Company (CPC) offers thousands of tubing connectors, quick disconnects and fittings for smart fluid handling in IVD and analytical equipment. Non-spill connectors speed testing throughput by eliminating drips, preventing air inclusion and increasing operator safety. Panel mount connectors can be added to existing equipment or bottle caps to provide secure, leak-free connections. Puncture […]
  • 310 Watt desktop medical power supply meets efficiency level VI requirements
    Power Partners releases a new 310 Watt medical grade desktop power supply from their PEAMD Series of AC and DC adapters. The 310 Watt unit is packed for ideal performance inside a compact case measuring 7.8 x 4 x 2 in. with a weight of only 3 lbs. The PEAMD310 Series is approved to the latest […]
  • Saelig introduces Multiple Instrument System MIS4 universal test system
    Saelig Company has introduced the ABI Electronics’ Multiple Instrument Station MIS4, an all-in-one testing tool that provides all commonly required test instruments in one compact programmable hardware module, mounted in a compact case or installed in a PC-drive bay. Controlled by ABI’s sophisticated SYSTEM 8 Ultimate PC software with a simple yet programmable operator interface, […]
  • AssurX announces document management software update for small to mid-size companies in FDA regulated industries
    AssurX, an enterprise quality management, risk and regulatory compliance solution provider, announces the release of the latest update to their AssurX document management software. The document management solution provides a cost-effective solution for small to medium sized companies faced with streamlined operations and is fully compliant for FDA regulated industries. Ideal solution for small to […]
  • Saelig presents new Amplicon Impact-R 1100F series computer
    Saelig Company announces the Amplicon Impact-R 1100F series, a fanless system powered by the Intel ATOM D2550 processor. Configured with a high performance 2.5 in. MLC Solid State Drive (SSD), the Impact-R 1100F series is a silent controller system. With options for multiple serial communication ports, the Impact-R 1100F can offer up seven DB9 connections […]

Leave a Reply