MITA Applauds Two-Year Suspension of the Medical Device Tax

01.23.18

MITA Applauds Two-Year Suspension of the Medical Device Tax

Washington, DC – Today, the Medical Imaging & Technology Alliance (MITA) applauded Congress for passing another two-year suspension of the medical device excise tax.

“MITA is pleased with the passage of the two-year suspension of the medical device tax, as it ensures that our companies are able to continue investing in innovative technologies to improve patient care,” said Joe Robinson, chairman of the MITA board of directors and senior vice president of health systems solutions at Philips Healthcare. “We are encouraged by the bipartisan support in Congress and hope that policymakers will continue their work toward a long-term solution to the tax.”

The House joined the Senate in passing the bill to suspend the medical device tax. It passed 81-18 in the Senate and 266-150 in the House.

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. In 2015, a bipartisan coalition in the House and Senate approved a two-year suspension of the tax, which expired in December.

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.

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