The impending medical device tax may have dire consequences for the medical device industry, especially in Minnesota where the industry hosts one of its largest hubs, according to House Representative Erik Paulsen (R-Minn.).
"The industry contributes $43 billion to [Minnesota’s] economy each year," Paulsen wrote in a letter to fellow North Star State regulatory Governor Mark Dayton. "But this Minnesota success story is being threatened by the new medical device tax included in the Patient Protection & Affordable Care Act."
Paulsen, a vocal advocate of the medtech industry and opponent of the 2.3% levy taking effect in January, asked Dayton to ensure that end-of-the-year fiscal cliff budget discussions include consideration of the medical device tax.
"Pure and simple, this is bad policy and it’s clearly costing jobs," Paulsen said in a statement issued yesterday after the IRS released its medtech tax guidelines. "The regulations released by the IRS today, just 26 days before the tax goes into effect, are placing further burdens on the backs of medtech small businesses that are credited with creating thousands of jobs for our state. There is still time to stop the regulations and stop the tax, but the Senate must act now."
