The Medical Alley Association has conducted a survey on its members to determine the impact of the implementation of the medical device excise tax which will come into effect on 1st January 2020, following its suspension in 2016.
Participants in the survey responded with the following if the medical device tax is reinstated:
- 83% of respondents will decrease research and development spending
- 67% of respondents indicated they will delay or forgo planned hiring
- 47% said they would suspend plans to physically expand their business
Medical Alley Association president and CEO, Shaye Mandle commented: “These results confirm what we’ve heard in private meetings: The medical device tax actively chills innovation and disproportionately hurts small businesses. There is bipartisan support for repealing the tax and we urge Congress to act before the end of the year.”
AdvaMed President and CEO Scott Whitaker added: “The harm the medical device tax will do to patients is clear.
“Reduced research and development spending means fewer life-saving and -improving innovations. Delayed hiring – combined with the 21,390 job losses predicted by the Tax Foundation last week – means fewer scientists and engineers working to discover the medical technologies of tomorrow.
“The tax has been suspended for longer than it was ever in place precisely because everyone recognises these consequences. There is overwhelming bipartisan agreement that the medical device tax is bad health policy, bad tax policy, and bad for American patients. It’s time to repeal it once and for all.”
AdvaMed has previously called on the president of the United States and Congress to repeal this tax.
