CBO: Repealing the med-tech tax would cost $30B

A bill aimed at killing the medical device tax would cost the government about $30 billion a year in revenues over a decade, according to an analysis by the Congressional Budget Office.

The bill, sponsored by Rep. Erik Paulsen (R-Minn.), would do away with a 2.3% levy on all U.S. sales of medical devices, set to go into effect next year.

Last week the House Ways & Means Committee approved Paulsen’s measure, sending it to the full House floor for a vote that could happen as soon as this week.

Yesterday the CBO estimated that the bill, House Resolution 436, "would reduce revenues by $29.1 billion over the 2012-2022 period."

"The entire revenue reduction would result from a reduction in on-budget revenues and thus pay-as-you-go procedures apply," according to the bureau.

The Ways & Means hearing turned fractious when Democrats called for Republicans to detail how they’d replace the lost revenues as required by the so-called "pay-go" rule.

Late last week the GOPers obliged, releasing a plan designed to generate $43.9 billion over 10 years – more than enough to cover the gap if the med-tech tax is repealed.

Here’s a look at the CBO’s estimates on the cost of repealing the tax from 2012 to 2022: