ObamaCare created an arbitrary 2.3% excise tax on medical device manufacturers that could have a devastating impact on the jobs of over 26,000 people in our state who work for medical device companies. The healthcare legislation will fall heavily on smaller, start-up companies as well large innovative businesses that are essential to revitalizing our economy and creating new jobs.
This policy essentially taxes innovation, a classic example of government interfering with free markets, thereby diminishing the ability of private sector companies to generate new products, economic output and jobs. Here is an article from Ray Elliot, the CEO of Boston Scientific Corp.
By taxing the sales revenue – not the net profits – of medical device manufacturing companies, the medical device tax will extract $20 billion from this industry, in some cases costing companies more than they generate from their operations. This could cripple investment in research, product development and facility expansion, curtailing job growth and stifling medical invention.
Medical device products are essential to the health care of countless patients and medical device companies are essential to providing good jobs in Minnesota. We applaud Rep. Erik Paulsen (R-Third Congressional District) for leading the fight to repeal this job-killing, counterproductive tax as quickly as possible.