AdvaMed Issues Statement on House Hearing on IRS Implementation of Device Tax

The Advanced Medical Technology Association has issued a statement on the House Subcommittee on Oversight of the Committee on Ways and Means hearing on the medical device excise tax's implementation and administration.

 

The following statement was attributed to Stephen J. Ubl, president and CEO of AdvaMed:

 

"While AdvaMed supports the goals of healthcare reform consistent with our long-held principles, we have consistently opposed the nearly $30 billion medical device tax because of its damaging effects on economic competitiveness, jobs and the research and development needed to find tomorrow's treatments and cures.

 

"The medical device tax is one of the few IRS-administered provisions that goes into effect in 2013. Even apart from the destructive $30 billion economic burden of the tax, the mechanics of implementing it will be extremely challenging both for companies and for the IRS. It is vastly more complicated than a typical excise tax, and compliance by companies in our industry will be both costly and burdensome.

 

"We appreciate the IRS's efforts to address our concerns regarding the implementation of this onerous tax, but simply put, the complexity and difficulty in developing these regulations underscores that an excise tax is a blunt and damaging instrument being applied to highly innovative and dynamic industry.

 

"Our industry and the healthcare sector have a proven track record of creating jobs. Repealing this tax is an important first step in helping lead to economic recovery and further job growth.

 

"We applaud Congressman Charles W. Boustany Jr., MD, (R-LA) and the subcommittee in their efforts to take a close look at the impact of the new IRS regulations on the agency as well as the millions of Americans it serves.

 

"Moreover, we look forward to the opportunity to continue to work with the IRS to address implementation concerns."

 

Related Articles on AdvaMed:

AdvaMed Praises Senate Passage of Medical Device User Fee Act Reauthorization Legislation

AdvaMed Issues Statement on GAO Implantable Medical Device Procedures Report

AdvaMed Praises House Passage of $30 Billion Medical Device Tax Repeal

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