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

March 21, 2013 by Arezu Sarvestani

Rep. Dan Maffei (D-N.Y.) proposes new bill that would strike down the 2.3% medical device tax and make up for the lost revenue by cutting tax breaks for big oil & gas 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.

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"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.