Medical device tax: Paulsen re-boots repeal bid with new bill, Senate measure to follow

February 6, 2013 by MassDevice staff

Reps. Erik Paulsen and (R-Minn.) and Ron Kind (D-Wis.) introduce a bill to repeal the medical device tax, with a companion bill expected to follow in the Senate.

capitol hill

Rep. Erik Paulsen (R-Minn.) filed a new bill aimed at repealing the 2.3% medical device excise tax today, following up on his commitment to do away with the levy.

Paulsen, along with Rep. Ron Kind (D-Wis.) introduced H.R. 523, the Protect Medical Innovation Act, in the U.S. House of Representatives, along with a group of 175 co-sponsors. A companion bill is expected to be introduced in the U.S. Senate by Sens. Orrin Hatch (R-Utah) and Amy Klobuchar (D-Minn.).

The move is not a surprise, as Paulsen's office told MassDevice last month that the congressman planned to file a new bill shortly after the 113th Congress convened.

Sign up to get our free newsletters delivered right to your inbox

A bid to repeal the levy successfully passed 242-173 in the House of Representatives last June. But the Senate failed to act on the legislation during the 112th Congress. The prior House win no longer applied after the new Congress was seated last month.

"Placing a new tax on the backs of U.S. medical innovators and entrepreneurs who employ more than 400,000 Americans is not a prescription for economic growth or job creation," Paulsen said in a prepared release. "In fact, companies have already laid off thousands of employees as a result of this onerous new tax, and more jobs will be lost now that this tax is in effect. It's not only costing our country jobs and deterring innovation, but more importantly, it will reduce patient access to cutting-edge medical products and treatments that save lives."