Paulsen: Year-end agreement would suspend medical device tax

A two-year suspension of the medical device tax was included in the bipartisan, year-end “tax extenders” agreement as a result of the efforts of U.S. Rep. Erik Paulsen (R-MN) and Sen. Amy Klobuchar (D-MN).

The 2.3 percent excise tax on the sale of medical device products, including pacemakers, ultrasound machines, ventilators and artificial hips, would be suspended through Dec. 31, 2017, under the proposed package.

“We’ve seen the harmful, job-crushing effect that taxes in Obamacare are having on our small businesses, and the medical device tax has been one of the worst,” Paulsen said. “It’s driven innovation overseas, harmed job creation here at home, and made it difficult for small businesses to grow. That’s why I’ve championed this bipartisan provision that repeals the tax for two years to prevent further job losses and remove an unnecessary burden for Minnesota innovators that manufacture life-saving and life-improving products.”

Paulsen and Klobuchar have led efforts to permanently repeal the tax. The state of Minnesota plays host to more than 700 medical device companies employing approximately 35,000 people.

“I opposed the medical device tax from the start and have led Senate efforts with Sen. Hatch to repeal it because of its impact on manufacturing and innovation in Minnesota and across our country,” Klobuchar said. “After a lot of hard work, Democrats and Republicans came together today to suspend this harmful tax for two years. I will continue working with Rep. Paulsen and my colleagues in the Senate to end this tax permanently. Doing so will improve patients’ lives, create well-paying jobs and give Minnesota businesses the certainty and stability needed to keep researching, inventing and developing the next lifesaving medical breakthrough.”

Paulsen is also the author of the Protect Medical Innovation Act, which was passed earlier this year by the House in a bipartisan 280-140 vote.

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