MITA Supports 5 Year Delay of the Medical Device Tax

12.12.17

MITA Supports 5-Year Delay of the Medical Device Tax

Washington, DC – The Medical Imaging & Technology Alliance (MITA) today voiced its support for H.R. 4716 introduced by Representatives Erik Paulsen (R-MN) and Jackie Walorski (R-IN) that will suspend the medical device tax for five years.

“MITA appreciates the leadership of Reps. Paulsen and Walorski and Chairman Kevin Brady in working to address the medical device tax before it is set to resume in the new year. The five-year suspension is a step in the right direction for stimulating economic growth, encouraging medical innovation and improving patient care,” said Patrick Hope, Executive Director of MITA. “Allowing the device tax to restart in 2018, even temporarily, would amount to a tax hike on the industry and could result in job loss as well as disruptions to the medical imaging industry’s ability to innovate. Ultimately, we hope that Congress will continue to work toward full repeal of the medical device tax to safeguard high-paying, high-quality industry jobs and ensure that patients have access to the latest medical imaging technology.”

The 2.3 percent medical device excise tax was levied on the sale of medical devices that are fundamental to the practice of medicine both in diagnosing and treating disease. A bipartisan coalition in the House and Senate came together in 2015 to approve a two-year suspension of the tax, but is set to expire at the end of the year.

The American medical technology industry is a true economic success story, providing jobs for more than 400,000 people, paying out salaries that are 40 percent more than the national average ($58,000 vs. $42,000), and investing nearly $10 billion in research and development annually to advance patient care in the United States and around the world. The industry is fueled by innovative companies, the majority of which are small businesses, with 80 percent of companies having fewer than 50 employees.

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The Medical Imaging & Technology Alliance (MITA), a division of NEMA, is the collective voice of medical imaging equipment manufacturers, innovators and product developers. It represents companies whose sales comprise more than 90 percent of the global market for advanced medical imaging technology. For more information, visit www.medicalimaging.org. Follow MITA on Twitter @MITAToday.