Cutting jobs over device tax is "nonsense," says medtech CEO

September 25, 2012 by MassDevice staff

Speech therapy devices maker Glottal Enterprises' CEO says that using the 2.3% medical device tax to justify layoffs is "nonsense" and little more than a political strategy to attack the Affordable Care Act. coverage of medical device tax

The medical device tax isn't going to result in lost jobs if industry stakeholders play it right, according to speech therapy device maker Glottal Enterprises' CEO.

In a letter written to the editor of the Syracuse Post-Standard, Martin Rothenberg did the math and concluded that the tax would result in marginal increases in product prices and "zero effect on sales" if the company could successfully market an effective product.

"It would surely not lead us to lay off employees or shift to overseas production," he wrote.

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Rothenberg's letter came in response to comments made by his home state's Rep. Ann Marie Buerkle (R-N.Y.), who called out the device tax as a job killer.

Buerkle had cited Welch Allyn's decision to cut 275 jobs, which amounts to 10% of its global workforce, in order to cut costs ahead of the levy taking effect January 1.

"In claiming that it would significantly affect our sales, it is obvious that Buerkle is just using this issue to further a right-wing political agenda and attack the Affordable Care Act," Rothenberg wrote. "Either that or that she didn't take the time to do the simple math needed to understand the effect of the act."