Medical device tax: We need action by summer, Paulsen says

February 4, 2013 by MassDevice staff

Medical device industry advocate Rep. Erik Paulsen (R-Minn.) says Congress needs to act on the medical device tax by "late spring, early summer" this year.

Capitol Hill

Rep. Erik Paulsen (R-Minn.), an unrelenting opponent of the medical device tax that took effect at the start of the year, still sees avenues for repeal tied to larger discussions of corporate tax reform.

The tax is especially significant to Paulsen's hometown, which houses some of the largest medical device makers in the industry, including Medtronic (NYSE:MDT) and St. Jude Medical (NYSE:STJ), but the Congressman was more concerned about the little players in an on-air interview.

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

"It's not just the larger companies like Medtronic or Boston Scientific - there are 400 of these smaller companies, medical technology companies in Minnesota, that will be impacted by the new tax," Paulsen told KMSP-TV Fox 9 news. "This tax is not a tax on profit for companies, this is a tax on their sales, on their revenue, and for most companies that are medical device companies it takes 10-15 years to achieve profitability, sot this is the time to push the panic button."