Medical device tax becomes a political pinball

March 30, 2012 by MassDevice staff

The 2.3% medical device tax set to start next year has become a political pinball, surfacing in the run for the Republican nomination and at least 2 Senate races. covers the medical device tax

The medical device tax slated to go into effect next year has become an issue in the Republican race for the White House and a pair of Senate contests.

Mitt Romney, the former Mass. governor who's all but assured to win the GOP nomination ahead of the November presidential ballot, decried the tax while on the stump at NuVasive's (NSDQ:NUVA) California headquarters this week. And the tax is in play in Sens. Amy Klobuchar's (D-Minn.) and Scott Brown's (R-Mass.) defenses of their seats.

A analysis shows that the levy, a 2.3% excise tax on U.S. sales of medical devices, could draw substantially more than the $2 billion a year it's intended to raise.

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"I just don't think the president and his people understand that as they burden enterprise with taxation and with regulation, they hurt all of us," Romney said, according to ABC News. "These dreams that people like [NuVasive CEO Alex Lukianov] have had – these dreams are crushed, tax by tax, regulator by regulator, regulation by regulation. Washington is crushing the dreams, and crushing the dreamers. We can't let it happen.