MITA Calls on Congress to Prevent Implementation of the Device Tax
Medical Device Tax Regulations Impose Insufficient Timeframe for Compliance
Washington, D.C. – The Medical Imaging & Technology Alliance (MITA) today called on Congress to prevent implementation of the medical device excise tax, in response to regulations released today by the Internal Revenue Service (IRS) and the U.S. Treasury Department, which do not provide time for MITA member companies to comply with the requirements.
“With a mere 27 days until the device tax goes into effect, medical imaging and radiation therapy manufacturers do not have sufficient time to implement or adjust to these destructive regulations,” said Gail Rodriguez, Executive Director of MITA. “MITA strongly urges Congress to enact legislation immediately to delay implementation of the medical device tax. Ultimately, Congress should repeal this job-killing tax.”
The lack of time to implement these final regulations is compounded by the new requirement that manufacturers make semimonthly tax payments starting January 29, 2013.
The device tax, set to go into effect on January 1, 2013, will impose a 2.3 percent excise tax on medical device manufacturers, including innovative technologies used to diagnose, stage, and treat life-threatening diseases. The medical device industry currently employs an estimated 400,000 workers nationwide, pays salaries that are 40 percent higher than the national average ($58,000 vs. $42,000) and invests nearly $10 billion in research and development (R&D) annually.
As peer-reviewed research illustrates, medical imaging increases life expectancy and reduces costs in the health care system when used appropriately. The device tax will stifle the industry’s innovation and competitiveness by eliminating critical U.S. jobs needed to bring new, advanced devices to market.
The Medical Imaging & Technology Alliance (MITA), a division of NEMA, is the collective voice of medical imaging equipment, radiation therapy and radiopharmaceutical manufacturers, innovators and product developers. It represents companies whose sales comprise more than 90 percent of the global market for medical imaging technology. For more information, visit www.medicalimaging.org.