FOR IMMEDIATE RELEASE: December 10^th, 2012

Paulsen to Senate: Action is Needed on Device Tax Now

Support grows as letter is sent to Leader Reid asking for delay of job-crushing tax

Washington, D.C. – Rep. Erik Paulsen (MN-03) applauded Senate Democrats' call for action to delay the medical device tax. A letter signed by 18 Democrat Senators was sent to Senate Majority Leader Harry Reid (D-NV) asking to delay this job-crushing tax due to the overall poor economy as well as a lack of guidance for compliance. Paulsen is the chief author of legislation to repeal the $30 billion medical device tax (HR 436), which passed the House in June with overwhelming bipartisan support. 

“It is encouraging to see bipartisan and bicameral support growing to stop the implementation of the medical device tax. For months, it has been my hope that Senator Reid would bring this up for a vote and this letter shows that members of the Senate want action. Unless the Senate acts, this tax will kill jobs, negatively impact medical innovation, and damage one of America’s true success stories. With the tax set to go into effect in three weeks, we can no longer wait. It is time for the Senate to act on behalf of the 400,000 Americans employed by American medical device innovators as well as the millions whose lives will be improved and saved through medical innovation. I thank my colleagues in the Senate for their support and look forward to working with them to avoid this devastating tax.” 

A copy of the letter is below. It was signed by the following U.S. Senators: Klobuchar (D-MN), Franken (D-MN), Hagan (D-NC), Kohl (D-WI), Mikulski (D-MD), Kerry (D-MA), Casey (D-PA), Nelson (D-NE), Stabenow (D-MI), Shaheen (D-NH), Blumenthal (D-CT), Lieberman (D-CT), Schumer (D-NY), Gillibrand (D-NY), Durbin (D-IL), Murray (D-WA), Warren (elect-D-MA), and Donnelly (elect-D-IN). 

The Honorable Harry Reid

Majority Leader

United States Senate

Washington, DC 20510

Dear Mr. Leader,

As discussions on the fiscal cliff and our nation’s economic future progress, we write to request a delay in the implementation of the medical device excise tax scheduled to take effect on January 1, 2013.

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.  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. 

With this year quickly drawing to a close, the medical device industry has received little guidance about how to comply with the tax—causing significant uncertainty and confusion for businesses. As we work together to develop a long-term solution to help move our economy forward, reduce our debt and reform our tax code, we urge you to support delaying enactment of this provision in a fiscally responsible manner. 

Thank you for your consideration.  We look forward to working with you on this critical issue that will benefit patients, innovators and boost our country’s economic growth. 

Sincerely,

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