FOR IMMEDIATE RELEASE:March 29, 2011                                                 

MN’s GOP Delegation Voices Concern Over Medical Device Tax

Washington, DC – Last night, Reps. John Kline (MN-02), Michele Bachmann (MN-06), Erik Paulsen (MN-03) and Chip Cravaack (MN-08) sent a letter to IRS Commissioner Doug Shulman voicing their concerns about the $20 billion medical device tax included in the new healthcare law. In January, Rep. Paulsen introduced the “Protect Medical Innovation Act” which would repeal the job-crushing medical device tax. Reps. Kline, Bachmann and Cravaack are among the bill’s 110 co-sponsors.  Minnesota is home to over 400 medical device companies employing 35,000 people.

“The planned $20 billion excise tax on medical device manufacturers will lead to higher prices for devices and increased health care premiums. We also believe the tax will force medical device companies to reduce US employment and research and development expenditures,” said the letter. “We encourage you to look toward established industry sources to better understand the practicalities of the medical device market. As you work through this process, we need to learn more about your approach to these issues to ensure that the regulations do not exacerbate the impact on jobs and competitiveness resulting from the excise tax on medical devices.”

A copy of the letter is attached.

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