Device Tax Repeal Efforts Continue in House
Wednesday, June 3, 2015
Several CEOs of medical device companies in New York state recently signed an op ed opposing the tax. The executives, who are members of the MedTech Association, a trade association in the state of New York, wrote that "Billions of dollars that could be spent in developing enhanced medical technologies for better and more cost-effective patient care are instead diverted to the I.R.S as result of this tax. Many companies report shelving R&D projects. Young, early revenue companies—often those developing the most forward-looking medical technologies—are especially challenged to bear the burden of the tax, as it can effectively wipe out any profit." According to that op ed, the New York has the eight largest medical device economy in the country and the MedTech Association is just one of approximately 1000 "patient groups, innovators, associations and provider organizations" lobbying for tax repeal.