FOR IMMEDIATE RELEASE: May 21, 2012
Contact: Nachama Soloveichik (202) 224-0437
or Rebecca Neal (202) 224-8609
SEN. TOOMEY COSPONSORS AMENDMENT
TO REPEAL JOB-KILLING MEDICAL DEVICE TAX
WASHINGTON, D.C. – U.S. Senator Pat Toomey (R-Pa.) today cosponsored an amendment to the Food and Drug Administration Safety and Innovation Act (S. 3187) to repeal the job-killing medical device tax imposed by President Obama’s overreaching health care bill.
The Patient Protection and Affordable Care Act imposed a new 2.3 percent tax on medical device companies’ total sales. Since this tax applies to a business’s revenue, it will be especially onerous for small, up-and-coming companies that have not broken even on their investments. Not only will this tax cost our country jobs, it will also prevent the development of important, life-saving technologies.
Repealing the medical device tax is especially important for Pennsylvania, currently the fourth-largest producer of medical devices in the country and home to 576 medical device companies. Already, the industry provides more than 100,000 jobs among medical device companies, suppliers and other supporting businesses, and jobs in the medical device field pay 25 percent more than the average private sector job.
"In Pennsylvania, we have the potential to create thousands of jobs in the medical device industry and be a leader in creating life-saving technologies and products," Sen. Toomey said. "Unfortunately, this heavy-handed tax on medical device companies will have a chilling effect on job creation and the development of innovative products. I hope we can finally put an end to this job-killing tax this week."
Sponsored by Sen. Orrin Hatch (R-Utah), the amendment is cosponsored by 13 senators. In addition to Sen. Toomey, these are: Sens. John Barrasso (R-Wyo.), Scott Brown (R-Mass.), Richard Burr (R-N.C.), Dan Coats (R-Ind.), Tom Coburn (R-Okla.), John Cornyn (R-Texas), John Hoeven (R-N.D.), Kay Bailey Hutchison (R-Texas), Mike Lee (R-Utah), Richard Lugar (R-Ind.), Pat Roberts (R-Kan.), and Roger Wicker (R-Miss.).
U.S Senator Pat Toomey
502 Hart Senate Office Building
Washington, DC 20510