The medical device tax has long been a rallying point for lawmakers on the right, but the levy is making a cameo appearance in a fight among Democrats looking to represent Massachusetts’ 6th District.
Challenger Seth Moulton put long-time incumbent John Tierney on blast this month, criticizing his rival for failing to support a House bill to repeal the 2.3% medical device tax enacted by the Affordable Care Act. Moulton, a former marine and political newcomer, vowed to fight against the tax, adding that rival Tierney "stands in the way of these efforts."
Moulton emphasized his support for the Affordable Care Act overall, but noted that "the bill is not perfect." The medtech tax, in particular, stands to hurt the small companies that are the drivers of the medical device industry, he said.
"The actual impact of the excise tax on medical devices is significantly higher than its 2.3% face value due to the costs of compliance each company must bear," Moulton said in a press release this month. "Larger companies may already have tax personnel who can handle this, but the small, growing companies that make up a majority of the medical device industry in Massachusetts are hit hardest when they have to hire compliance staff that they wouldn’t otherwise need. Yet it’s these small companies that also drive much of the innovation the medical industry demands and the job growth our communities need."
The medical device tax was also the subject of some rivalry in 2012 between Tierney and Republican challenger Richard Tisei. Tierney has said that he’s interested in supporting the medical device industry, which has a sizable presence in Massachusetts, but that he wouldn’t add his name to a repeal bill until there were plans to make up for the $30 billion the tax is slated to raise over 10 years.
