U.S. Rep. Jackie Walorski (R-Ind.) Tuesday voted to repeal the job-killing medical device tax and protect Hoosier jobs in the innovative medical device manufacturing industry.
“Our economy is booming because of historic tax cuts and regulatory reforms, and we need to keep that momentum going,” Congresswoman Walorski said. “It’s time to end the medical device tax once and for all. Permanently repealing this job-killing tax will protect Hoosier workers and help patients access the life-saving medical technology they need.”
The House passed H.R. 184, the Protect Medical Innovation Act, which would permanently repeal the 2.3 percent excise tax on medical device sales, by a vote of 283 to 132. Congress earlier this year suspended the tax through 2019. Walorski in December introduced H.R. 4617, which would have suspended the medical device tax for five years.
“Thank you, Mr. Chairman. I rise today in support of H.R. 184, the Protect Medical Innovation Act.
“This legislation will permanently repeal the job-killing medical device tax. Hoosiers are proud to be leaders in medical innovation, with more than 300 medical device manufacturers in our state that support nearly 55,000 jobs. These are high-paying jobs, with workers in the industry earning about $50,000 per year on average.
“However, after Obamacare’s medical device tax took effect, the industry lost almost 29,000 good-paying jobs nationwide from 2012 to 2015, according to Commerce Department data. That’s why Congress took bipartisan action in 2015 to suspend the tax for two years, and did so again earlier this year. But if it goes back into effect after 2019, it will impede new discoveries and stifle medical innovation while destroying good jobs.
“Right now, our economy is booming because of historic tax cuts and regulatory reforms, and we need to keep that momentum going. It’s time to end the medical device tax once and for all. Permanently repealing this job-killing tax will protect American workers and help patients access the life-saving medical technology they need.
“Mr. Speaker, the medical device tax would have a devastating impact on Hoosier workers and people from across the country who depend on these products. The Protect Medical Innovation Act will boost American innovation and manufacturing, and it will encourage medical research and development that make a real difference in people’s lives. I urge my colleagues to support this vital piece of legislation, and I yield back.”
U.S. Senator Joe Donnelly Tuesday lauded the passage of bipartisan legislation in the U.S. House of Representatives that would repeal the medical device tax, and he called on the Senate to take quick action on the legislation. Donnelly has long supported repeal of the medical device tax, including as a cosponsor of the Medical Device Access and Innovation Protection Act. In 2015, Donnelly pushed for and helped get enacted a two-year suspension of the tax, and helped pass another two year suspension in 2018.
Donnelly said, “I have long pushed for a repeal of the medical device tax because it would benefit the hardworking Hoosiers who make these innovative products, as well as the patients who use them to improve their quality of life. I applaud the House of Representatives for again taking action to repeal the medical device tax and am hopeful that the Senate will quickly vote on the bipartisan legislation so that we can get it to President Trump’s desk.”
Indiana is home to many innovative medical device companies, which together employ more than 20,000 Hoosiers. Indiana rank. Indiana ranked second in the nation in export of life science products, which include medical device products, according to a Biocrossroads report released March 2018.
