Medical Device Tax Will Cost Jobs Finds MITA Member Survey
Four out of ten executives from medical manufacturers anticipate reducing their U.S. workforce because of the 2.3 percent medical device excise tax that will go into effect next year, according to a survey by The Medical Imaging & Technology Alliance (MITA). Twenty-six percent of MITA members responded to the Medical Device Tax Impact survey. Survey responses indicate concerns that the tax will stymie job growth and innovation in the United States. Forty-one percent of survey respondents projected that manufacturing, sales, management and service sectors would be significantly affected by job cuts. Twenty-nine percent also predicted a reduction in research and development. Combined, respondents expect to pay more than $287 million dollars in additional taxes in 2013. “Such a large new tax jeopardizes thousands of American jobs in a difficult economic climate and poses a serious threat to innovation of new life-saving imaging technologies,” said Gail Rodriguez, MITA's executive director, in a press release. “MITA urges Congress to take action immediately to prevent this tax from taking effect on January 1 and, ultimately, to repeal it.” Last week, Senator Klobuchar (D-Minn.), Senator Hagan (D-N.C.), and 15 other senators sent a letter to Senate Majority Leader Harry Reid requesting delay in implementing the tax. However, President Obama has gone on record as being opposed to any delay.