Washington, D.C.– Congressmen Erik Paulsen (MN-03) applauded the inclusion of a two-year medical device tax repeal in the year-end ‘tax extender’ package announced Tuesday. Paulsen has been a Congressional leader on efforts to eliminate the burdensome 2.3.% excise tax on the sale of medical devices like pacemakers, ventilators, and artificial hips. Legislation he authored to repeal the tax, the Protect Medical Innovation Act, passed the House by a 280-140 vote earlier this year. The medical device tax was initially passed in the Affordable Care Act in 2010 and went into effect in 2013.  

“The medical device tax was a bad idea five years ago, and it’s a bad idea now,” said Paulsen. “The tax is stifling innovation of life-saving and life-improving medical technology, killing American manufacturing jobs, and hurting small businesses. For these reasons, a bipartisan coalition in Congress expressed their strong support for elimination of the tax. Suspending this tax will give our innovators some relief from an unnecessary burden and protect high-paying jobs.”

Advocacy groups and stakeholders cheered the inclusion of the two-year suspension in the package and Paulsen’s advocacy on the issue.

“AdvaMed is extremely appreciative of the strong leadership by Rep. Paulsen and his tireless efforts to address the medical device tax, which has resulted in language being included in the extenders bill to suspend the tax,” said JC Scott, Senior Executive Vice President, Government Affairs at Advamed. “Hitting pause on this harmful tax is an important first step for protecting the medical technology ecosystem, freeing up funds for important research and development projects, and helping to ensure the U.S. remains the global leader in innovation. We urge the House and the Senate to adopt this agreement and the President to sign it as quickly as possible.”

"We thank Congressman Paulsen for his tremendous leadership on an issue that impacts job creation and patient care throughout the United States.  Suspension of the medical device tax would be a powerful boost for medical technology innovation," said Scott Huennekens, President & CEO of Verb Surgical and Chairman of the Medical Device Manufacturers Association (MDMA).  "We urge Congress to act quickly to address the medical device tax before any more harm is caused by this onerous policy."

“The Medical Imaging & Technology Alliance (MITA) congratulates House and Senate negotiators for including a two year suspension of the medical device tax in the tax extenders package. We hope this two year delay will lead to permanent repeal and allow stakeholders and leaders in the industry to continue to advance economic and innovative advancements in the field,” said Nelson Mendes, Chairman of the MITA Board.  Mendes concluded, “This legislation is the result of a constructive bipartisan agreement and we would like to recognize Rep. Erik Paulsen and other leaders for their strong support and leadership.”

"Suspension of the medical device tax will have a tremendous impact on patients who are seeking new therapies and life saving innovation,” said Shaye Mandle, President & Chief Executive Officer of LifeScience Alley. “For Minnesota, whose companies pay the largest share of this tax, today's action opens the door for significant investment in people and technologies, benefitting our economy and strengthening US leadership in healthcare evolution. This achievement could not have happened without the leadership of Minnesota's congressional delegation and, in particular, the tireless efforts of Erik Paulsen. Minnesota's Medical Alley thanks you!"

Paulsen previously authored a Wall Street Journal column on the why Congress needed to repeal the burdensome tax.

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. 

###