Washington, D.C.– Legislation authored by Congressman Erik Paulsen (MN-03) to repeal the medical device tax passed the House Thursday afternoon. The bill, H.R. 160, the Protect Medical Innovation Act, passed the House by a bipartisan vote of 280-140. H.R. 160 eliminates the 2.3% tax on medical devices that was included in the President’s health care law. The legislation now heads to the Senate where repealing the medical device tax also has bipartisan support. A nonbinding vote to repeal the tax has previously received 79 votes.

“As a country, we take great pride in our ability to create, invent, and innovate – especially when it comes to products that improve people’s lives,” said Paulsen. “The medical device tax stands in direct contrast to this ideal, which is why you’ve seen Members of Congress from across the political spectrum support its repeal. It’s time to push this legislation across the finish line and support American jobs and innovation.”

Paulsen highlighted the effect the tax has had on a number of companies that manufacture medical devices. Because the tax is on sales instead of profit, one small business in his district is paying an effective tax rate of 79%. Paulsen spoke in favor of the legislation on the House floor. Video is available here.

Congressman 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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