Tis' the season to be jolly! I hope you're having a wonderful holiday season with family and friends as we head into the Christmas week.

Congress wrapped up some big issues recently including tax reform, homeland security, a long term highway funding bill, and education. More on some of this below, but here are other side notes to mention:  I received an award from the Campaign to End Obesity for my work helping curb the obesity problem that affects millions of Americans and drives up health care costs. Earlier this year, I introduced legislation, the Treat and Reduce Obesity Act, which would allow Medicare to cover certain anti-obesity drugs and behavioral therapy services.

Also, I recently highlighted an organization on the House floor for their tremendous work easing the financial and emotional impact experienced by families that have a child with cancer. The Pinky Swear Foundation began 12 years ago by Chanhassen's Chepokas family in memory of their son Mitch. Watch the video of me here.

Have a great week and Christmas season and be sure to let me know whenever I can be of assistance to you or your family. Join the conversation online by visiting my website, Facebook page, Twitter, Instagram, and please watch my latest Erik's Correspondence Corner video.

Medical Device Tax Suspended

Repealing the onerous medical device tax that was part of the President's new health care law has long been one of my top priorities. The medical technology industry is a Minnesota success story with hundreds of companies providing tens of thousands of high-paying jobs. But, the tax has forced layoffs, reduced investment in critical research and development, and cost our economy thousands of jobs. According to some estimates, Minnesota is paying 25% of the tax because of our high concentration of medical technology companies! Many are small businesses that aren't even profitable and are paying as high as a 79% effective tax rate because of the device tax.

Good news is on the way, though. I was able to include a two-year suspension of the tax as part of a larger tax package signed into law by the President. This will help prevent high tech manufacturers from moving their operations and expansion overseas but instead invest here at home. In fact, some are already announcing they will now invest more in research and development to invent new life-saving and life-improving technologies to help patients. Watch me speak on the House floor in favor of the legislation or listen to my interview on WCCO radio for the update.

Fixing A Broken Tax Code

The United States is the only country in the world that lets important parts of its tax code expire on a regular basis. This impacts families, charities who count on donations, and local businesses who want to invest in new equipment and their employees.

This week Congress made many of these temporary and retroactive tax provisions permanent so now families, charities, and employers can plan with more clarity, certainty, and predictability. Some of the provisions made permanent include: the Research and Development tax credit, expensing for small businesses and farmers, higher education tax provisions for college expenses, and a bill I authored to help people who want to make a donation to charity by allowing them to avoid income tax on distributions from their Individual Retirement Account (IRA) if they rollover that money directly to the charity of their choice. Minnesotans give generously to many charities to help others and this provision is a big victory for charitable organizations.

And, some key taxpayer protections are now put into place to reign in the IRS. Remember when the IRS was found to be targeting individuals based on their personal or religious beliefs? The new law will now allow the ability to fire IRS employees who take politically motivated actions against taxpayers, requires IRS employees to respect the taxpayer bill of rights, and prohibits IRS employees from using personal email accounts for official business.

Erik with his siblings at the White House Christmas Party.

Congressman Paulsen's Washington office is in the holiday spirit.

Erik gave an evening tour of the Capitol to St. Olaf alumni - Um Ya Ya!

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