National Center for Policy Analysis pans the med-tech tax
February 09, 2012
The non-partisan, non-profit National Center for Policy Analysis joined medical device makers in panning the med-tech tax set to go into effect in 2013.
The National Center for Policy Analysis took up the cause of promoting the repeal of the 2.3% medical device tax, calling it "a blow to an industry that provides goods essential to the health of Americans."
The NCPA, which considers itself a nonpartisan think tank promoting free-market alternatives to government regulation, published its opinion on the levy this week, finding it bad for business, for patients and for workers.
"Congress would be wise to repeal the impending medical device tax," NCPA concluded. "The tax will boost the nation's medical bills while causing the loss of high-paying manufacturing jobs, and the potential tax revenue is relatively small compared to the costs."
The institute's concerns parallel those of device industry advocates and device makers like Cook Medical and Stryker Corp. (NYSE:SYK ).
Cook chairman Stephen Ferguson has been a vocal opponent of the med-tech levy, which he has called the "tongue-depressor tax." The 2.3% excise tax is intended to help fund health reform measures contained in the Patient Protection & Affordable Care Act.
"I hope that we have enough common sense in this country and we can lay aside partisan politics to correct this situation," Ferguson told MassDevice, "and there are a lot of members of Congress who feel that way."
Stryker took a proactive approach, announcing plans to cut 5% of its global workforce to save $100 million dollars, the amount it expects to pay when the tax goes live in 2013.