U.S. House Democrats lined up in opposition to Rep. Erik Paulsen’s (R-Minn.) medical device excise tax repeal bill, but not always on the merits of the tax itself.
Democrats who voiced support for repealing the tax took exception to the GOP’s pay-for, asking that Republicans find an alternative that doesn’t target low- and middle-income households to make up for the $30 billion the tax is expected to generate of 10 years.
"I can’t support the bill because of the pay-for in the bill," Rep. Mel Watt (D-N.C.) said during the House session today. "I’m convinced we should repeal the medical device excise tax. I think it’s driving jobs and innovation offshore and a lot of that is happening in my Congressional district. But I also think it’s counter-productive to talk about doing it and paying for it in the way that’s been proposed in this bill."
GOP leaders unveiled late last week to pay for medical device tax repeal through a measure intended to take a stronger hand in recouping over-paid health insurance tax credits granted to families.
The measure could raise as much as $43.9 billion over 10 years, but the move offended many Democrats who viewed it as a choice between a strong industrial interest and families facing difficult circumstances.
"This is not a tax that I like. As a matter of fact, I don’t like this tax at all," Rep. Mike Thompson (D-Calif.) said on the chamber floor. "I’d vote to repeal this provision today, yesterday or tomorrow if we were having a provision with a serious discussion about the pay-for. Instead, we’re repealing a tax on an industry that had over $40 billion in profits in 2010, and we’re paying for it on the backs of middle-class people, some of whom for the first time in their adult lives will have access to quality, affordable healthcare."
The sentiments became a sort of mantra as debates led on, suggesting that there may be a larger base of Democrats who would be willing to support medical device tax repeal efforts as long as there is negotiation on the means to pay for it.
House Dems urged alternative methods to pay for the tax, including taxes on soda and other unhealthy food products.
"Pay for this bill – there are plenty of ways that we can," Polis said. "Unfortunately this closed rule allows for no discussion other than the extremely partisan middle-class tax increase, which the Republicans have proposed to pay for this bill."
"If we can find a way to pay for it that doesn’t throw over a quarter million Americans out of healthcare insurance, that doesn’t increase taxes for a family making $72,000 a year – an we can – let’s do it," he added.
"We need to find a more acceptable way to do what I think a lot of us agree needs to be done, which is to repeal the medical devices tax," Watt said. "But this is not the way to pay for it."
Disdain for the pay-for didn’t prevent all House Dems from lending their support to Paulsen’s bill, but some of those who did took a moment to urge colleagues in Senate to begin considering alternatives to the health insurance subsidy offset.
"I support eliminating this medical device tax, which should never have been included in the Affordable Care Act, but I strongly oppose the offset in this bill," Rep. Betty McCollum (D-Minn.) said on the House floor. "The Republican goal is to kill healthcare reform, my goal is to strengthen it. Today, I will vote to send this bill to the Senate where I know a responsible offset can be found.
The device tax repeal bill will go to a final house vote within the hour.