An Unwise Tax on Medical Innovation


In devising the Affordable Care Act, Congress and President Obama searched for tax monies to offset the program’s costs. One revenue-raiser was a new 2.3 percent tax on medical devices. This doesn’t sound like much in the overall Obamacare fundraising effort — the funds it will raise amount to little more than a rounding error. However, it will devastate one of the nation’s most innovative industries and the millions of Americans who benefit from its products. The realization of its impact and the insignificant amount the tax will contribute to offsetting Obamacare costs make repeal a distinct possibility.