Civitas Review

Obamacare Medical Device Tax to be Scrapped?

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Dec
17

Let's hope so. From the N&O:

A proposed Affordable Care Act tax freeze affecting nearly 100 North Carolina manufacturers would keep millions of dollars in the state over the next two years if Congress passes this week’s negotiated budget deal.   

Some in Congress have had an eye on axing the ACA’s medical device manufacturing tax since it went into effect with other mandates and taxes on Jan. 1, 2013. The Congressional Budget Office estimates a repeal of the tax would cost the federal government more than $24 billion over the next decade in revenue, adding to the national deficit. (translation: will save taxpayers $24 billion – BB)

….

As proposed in this week’s major omnibus spending bill – hammered out by House leaders while the federal government has operated under stopgap spending measures to avoid a shutdown – the medical device tax would be frozen in 2016 and 2017. The sales tax applies to medical devices sold to physicians and other health care professionals, not retail medical equipment sold for in-home use.

The tax freeze would give relief to one of the Research Triangle’s largest employment sectors. Across the state, there are more than 100 medical-device production and manufacturing businesses, according to the North Carolina Biotechnology Center, an economic development nonprofit entity funded by the state.

Perhaps the most interesting passage from the article was this: "Some pushing for such a freeze, such as U.S. Rep. Alma Adams, D-N.C., have said the tax hampers the biotechnology and medical industries’ ability to innovate and expand, creating jobs."
Taxes "hamper" economic growth and job creation? Who knew?

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