WASHINGTON, D.C. – Rep. Leonard Lance (R-NJ-07) today urged his colleagues to support passage of a bill that would repeal a 2.3 percent tax on medical devices that is set to take effect at the year’s end.
During a Capitol Hill news conference, the Republican lawmaker noted that New Jersey is a leader in the medical-device industry and home to Garden State-based companies BD, Bard, Baxter, Johnson & Johnson, 3M Health Care, ConvaTec, Roche, Stryker, Varian Medical Systems, Kinetic Concepts, Thoratec and Zimmer Holdings that help improve the lives of millions of people worldwide every day.
“New Jersey is a global leader in medical technology and medical device development, employing more than 62,000 jobs in the Garden State,” Lance said. “Having personally visited many device companies, both large and small, I know that the impending tax will stifle innovation, hurt job creation and economic growth and ultimately endanger lives.”
“Repealing the medical device tax will ensure that the Garden State continues to be a world-wide leader in the medical device industry,” Lance concluded.
The White House has threatened to veto H.R. 436, if it should pass Congress. According to a statement of administration policy, “The medical device industry, like others, will benefit from an additional 30 million potential consumers who will gain health coverage under the Affordable Care Act starting in 2014.”
“This excise tax is one of several designed so that industries that gain from the coverage expansion will help offset the cost of that expansion.”
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