FOR IMMEDIATE RELEASE: August 15^th, 2011

Paulsen Asks President to Explain His Tax on MN Innovation

Invites Obama to Meet With Med-Tech Companies While in Minnesota

Eden Prairie, MN - With medical device manufactures beginning to shift jobs to China as a result of the Obama Administration’s tax on medical innovation, Rep. Erik Paulsen (MN-03) has invited the President to meet with representatives of medical technology companies during his next trip to Minnesota on August 30. Paulsen is Co-Chair of the House Medical Technology Caucus and author of the Protect Medical Innovation Act (H.R. 436), legislation that would repeal the $20 billion excise tax on made-in-America medical devices. This industry is vital to the livelihood of Minnesota, which is home to over 200 medical technology companies that generate approximately 30,000 jobs.

Below is the text of the letter Rep. Paulsen sent to the President earlier this month. A PDF of the letter is also available for download HERE.

Dear President Obama:

As Co-Chair of the House Medical Technology Caucus, I am writing you today to invite you to meet with leaders in the medical device industry during your upcoming visit to Minnesota. 

Minnesota has long been an industry hub and home to some of the largest medical device firms in the country.  The industry is unique in its ability to improve the quality of life for billions of people worldwide with life-saving innovation and high-paying jobs.

However, your State of the Union pledge to “out-innovate” the rest of the world is starkly at odds with the medical innovation tax - the $20 billion excise tax on medical devices - introduced in the Patient Protection and Affordable Care Act. Though not yet implemented, this tax is already giving American manufacturers a severe case of heartburn. Last week Boston Scientific, which has a sizable presence here in Minnesota, announced plans to lay off 1,300 employees worldwide and expand their operations in China because this tax threatens their ability to grow here in the United States.

This industry is a true American success story. During your trip to Minnesota, I urge you to take the time to learn firsthand how the innovation tax, as well as the increasingly unpredictable FDA device review processes, are threatening 30,000 Minnesota medical technology jobs and the development of life-saving innovations for patients. I would be happy to arrange for you to meet with representatives of these companies during your upcoming trip so that we can prevent the loss of even more jobs to countries like China.  Thank you for your consideration and I look forward to hearing from you.

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation currently serves on the House Ways and Means Committee, and is co-chair of the Congressional Korea-U.S. Free Trade Working Group and co-chair of the House Medical Technology Caucus.

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