Washington, D.C.– In a bipartisan vote, the U.S. House of Representatives passed legislationauthored by Congressman Erik Paulsen (MN-03) to repeal the burdensome medical device tax. According to one study, the 2.3% excise tax included in the President’s health care law has already resulted in the loss of 33,000 jobs and future jobs losses are estimated at 132,000. Paulsen’s bill, H.R. 523, the Protect Medical Innovation Act, has 275 cosponsors, including 46 Democrats. The legislation was included in a larger package of jobs bills.

“The medical device tax continues to eliminate thousands of good-paying jobs and stifle medical innovation,” said Paulsen. “The tax has already meant the loss of 33,000 jobs – equivalent to wiping out the entire Minnesota medical device industry – and will continue to harm our economy. Repealing this tax is the only answer for a bad idea that only gets worse.”

A recent Harvard Business Review article found that the device industry faces more uncertainty than any other industry in the country. In a speech on the House floor, Paulsen mentioned a small business in his district he spoke with that is having to borrow over $1 million a year just to pay the medical device tax.

In addition, recent problems have also surfaced with the IRS’s inability to adequately enforce the tax. A recent Treasury Inspector General audit found the IRS issued 217 erroneous penalties to device companies over a six month period.

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov.

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