Rep. Zeldin Announces Passage of Repeal of the Medical Device Tax
Washington, DC – Congressman Lee Zeldin (R, C – NY-1) announced today that legislation he cosponsors, the Protect Medical Innovation Act (H.R. 160), just passed the US House of Representatives.
The Protect Medical Innovation Act will repeal the medical device tax, a burdensome tax on medical device manufacturers and importers, which was a result of Obamacare. Medical device companies are taxed on their sales, whether or not they have made a profit that year.
America has been a global leader in the medical device industry. It plays a critical role in the United States economy, employing over 400,000 Americans across the country. On average, jobs in the medical device industry pay 40% higher than the national average, providing Americans with high paying jobs.
Repealing the medical device tax is especially important to Long Island, which is home to many medical device companies, as well as a number of research facilities; contributing to thousands of jobs and providing high quality care for Long Island patients.
The medical device tax has led to job loss across the country with businesses laying off workers or reducing their workers’ hours, and driving American companies overseas in order to stay in business. The medical device tax also forces companies to push off their costs onto the consumers, hiking up costs on hospitals, doctors and patients.
Furthermore this tax prevents innovation in the industry and suppresses competition, reducing the technological advancement of medical devices and directly hindering patient care and access to lifesaving treatments or cures.
Congressman Zeldin said, “I strongly support the Protect Medical Innovation Act and was proud to vote for the repeal of the medical device tax, which hurts businesses and consumers here on Long Island. The medical device industry is an important part of Long Island’s economy with many manufacturing companies and research and development facilities located in the New York tristate area, which directly contributes to our economy and provides high paying jobs for our community.”
The bill passed the House of Representatives today by a vote of 280-140.