Lawmakers Keep Tax Repeal Hope Alive

U.S. Senators Amy Klobucher (D-Minn.) and Kay Hagan (D-N.C.) spearheaded a letter signed by 16 other senators to Senate Majority Leader Harry Reid (D-Nev.). The letter is the latest in a string of petitions, led by both politicians, civilians and industry advocates, to delay the implementation of the 2.3 percent medical device tax set to kick in Jan 1.

The letter interrupts the dominant discussion in the House as the year comes to a close: The fiscal cliff. Klobucher, Hagan and their fellow senators appeal to a shared sense of concern over the “nation’s future economic progress,” as most industry players agree that an excise tax on medical devices will only force job cuts in the United States, forcing jobs overseas stifling innovation.

“The medical technology industry directly employs over 400,000 people in the United States and is responsible for a total of two million high-skilled manufacturing jobs,” the lawmakers wrote. “Additionally, this industry is also one of the few that enjoys a net trade surplus, significantly boosting U.S. exports around the globe. In an environment focused on increasing exports, promoting small businesses, and growing high-tech manufacturing jobs for the future, we must do all we can to ensure that our country maintains its global leadership position in the medical technology industry and keeps good jobs here at home.”

The letter claims that despite a non-stop effort on the part of those who wish to see the tax delayed or eliminated altogether, there has been “little guidance” about how to comply with it. The Internal Revenue Service of the United States published its final guidance on the tax last week, and detailed how companies should go about filing taxes and forms.