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Medical Device Tax
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The medical device excise tax was developed as a key element of the Affordable Care Act (ACA), and a way for the medical technology industry to help pay for healthcare reform. As defined, the 2.3% tax is levied on all U.S.-based medical product sales (not profits) that must be paid by companies every two weeks. In total the device tax is meant to raise approximately $30 billion over ten years.
MichBio has been at the forefront of the broad industry effort to repeal the medical device tax. Working with AdvaMed, MDMA and MITA, as well as a member of the Coalition for Device Tax Repeal, we've tirelessly advocated Congress to relieve companies of this onerous tax that is impacting R&D activities, manufacturing operations, and business growth.
AdvaMed, in a recent survey and report estimated that the ACA’s 2.3% medical device tax has already cost the industry 33,000 jobs (14,000 layoffs and 19,000 planned but not hired). While there is growing support for repealing the provision, Congress has yet to come up with a way to “pay for” or offset the anticipated tax revenues.  Michigan's Rep. Dave Camp (R-05; Chairman, Ways & Means) released his tax reform proposal that included a provision to repeal the medical device tax as part of a comprehensive overhaul of the tax code.

Related Resources

AdvaMed Medical Device Excise Tax Survey Report 2013 (pdf)
MichBio Letter to MI Delegation re Medical Device Tax (pdf)
Rx for R&D Repealing Medical Device Tax - The American Magazine (pdf)
AdvaMed - Device Profits Competitiveness and the Device Tax (pdf)
AdvaMed - Device Tax "Fair Share Argument" (pdf)
Device Tax Claims vs Facts (pdf)
Advamed et al Device Tax CheckList Ad (pdf)
Medical Device Tax FAQs 2013 (pdf)
IRS Med Device Tax Final Guidance (pdf)
MichBio OpEd - Michigan Hurt by Job Killing Tax (pdf)
MEDC Letter on Device Tax (pdf)
Medical Device Excise Tax - Company Survey Report 2012 (pdf)

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