Much ado about nothing: The impact of the medical device excise tax
Wed, 05/15/2013 - 1:32pm
Critics of the new 2.3% medical device excise tax are hitting new heights with their claims of dire consequences:
- Conservative blogger and attorney Johnathan Emord blogged that the tax will "wipe out an entire industry," and further asserts that the tax is "one of the most draconian tax burdens in history."
- Stephen J. Ubl, president of the Advanced Medical Technology Association, called the tax "job-killing, innovation-destroying, and anti-competitive," while his counterpart, Gail Rodriquez of the Medical Imaging & Technology Alliance, claimed the tax threatened "lifesaving innovation."
- Dr. Maurice Ferre, founder and CEO of publicly traded Mako Surgical Corporation, stated that the tax will have an impact on companies such as Mako to do research and development and create jobs.
- Jeffrey Binder, CEO of Biomet with global sales greater than $2.8 billion, said the tax is "ill-conceived and counter-productive."
- Sean Fenske, a "medical design technology" blogger, stated that the tax is "already costing some employees of medical device OEMs their jobs as companies 'prepare' for the added expense of the tax before it's even being put into effect."
What are the facts? Is the industry overreacting?