MedTech Applauds Congress for Including Suspension of the Medical Device Tax in Year-End Legislation
Thursday, December 17, 2015
MedTech Association, a membership-based trade association for the bioscience and medical technology (Bio/Med) industry in New York State, applauds Congress for including suspension of the medical device tax in year-end legislation. Today, the U.S. House of Representatives passed the Protecting Americans from Tax Hikes (PATH) Act, bipartisan, bicameral legislation which places a two-year moratorium on the medical device tax. The 2.3 percent excise tax has been levied on the sale of medical devices halting investment in research and development and hampering the advancement and delivery of life-saving technologies.
“MedTech commends the bipartisan efforts to include a two-year suspension of the medical device tax in the tax extenders package,” said Jessica Crawford, MedTech president. “Suspension is an important step toward full repeal of the medical device tax and preserving more than 13,000 jobs (direct and indirect) and $4.6 billion in economic impact across New York.”
New York State ranks as the eighth most significant medical device industry cluster in the country, driven primarily by Upstate New York. The medical device industry plays a vital role in the Upstate New York economy, with a large and specialized device sector that is 26 percent more concentrated relative to the national average. This sector employs 8,400 New York State residents, paying out salaries 74 percent greater than the overall private sector ($71,900 as the average wage).
Nationally, the medical technology industry employs more than 400,000 people and invests nearly $10 billion in research and development annually to advance patient care in the United States and around the world.
“On behalf of nearly 350 medical technology companies across New York State, their employees and the patients they serve, MedTech applauds members of the New York congressional delegation for their unwavering support to repeal this onerous tax” said Crawford. “Their efforts will help boost innovation, job creation and patient care.”