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A group of 17 Democratic U.S. senators and senators-elect have signed a letter urging for a delay in implementing a tax on the medical-device industry that is scheduled to go into effect Jan. 1, said two people familiar with the matter.
The letter, a copy of which was obtained by Dow Jones, publisher of The Wall Street Journal, was addressed to Senate Majority Leader Harry Reid and said the “the medical device industry has received little guidance about how to comply with the tax–causing significant uncertainty and confusion for businesses.” It requested a delay be included in the bill Congress is negotiating to avoid the so-called fiscal cliff.
The Democrats’ support could give new momentum to the industry’s intense lobbying campaign to repeal or delay the 2.3% tax on device sales, which companies say will hurt profits and lead to U.S. job losses. However, they face a battle because other Democrats, as well as the White House, oppose any postponement.
he tax, part of the health-care overhaul bill passed in 2010, is expected to generate $30 billion over the next 10 years to help pay for expanded health insurance. Along with the device industry, the law also placed new taxes and cost- cutting measures on the pharmaceutical, hospital and insurance industries under the premise that the newly insured will translate into new customers.
The device industry, which makes everything from pacemakers to replacement hip and knee joints, has spent much of the past year pushing Congress to repeal the tax. Over the past couple years, Medtronic Inc. ( MDT ), Covidien PLC ( COV ), Boston Scientific Corp. ( BSX ) and others spent millions lobbying against the device tax and on other policy matters, disclosure documents show.
The letter to Sen. Reid was signed by Senators Richard Durbin of Illinois, Bob Casey of Pennsylvania and Al Franken of Minnesota, as well as Senator-Elect Elizabeth Warren of Massachusetts. Sen. Joseph Lieberman, an independent from Connecticut, also signed the letter, bringing the total to 18.
"As we work together to develop a long-term solution to help move our economy forward, reduce our debt and reform our tax code, we urge you to support delaying enactment of this provision in a fiscally responsible manner," the letter said.
With just a month until the tax is enacted on Jan. 1, many believe the industry's best hope is to have a delay inserted in the last-minute bill now being negotiated to avert the so-called fiscal cliff of spending cuts and tax increases.
"As we work together to develop a long-term solution to help move our economy forward, reduce our debt and reform our tax code, we urge you to support delaying enactment of this provision in a fiscally responsible manner," the letter said.
On Monday, Franken again expressed his opposition to the tax he voted for. “I want to repeal the medical device tax altogether,” the senator and former comedian said in a statement. “But I am concerned that we are running out of time before this job-killing tax goes into effect. So, for now, the best thing to do to ensure that this important industry continues to create jobs and producing life-saving devices is to delay this unwise tax.”
Originally posted by NavyDoc
So the very people who pushed this legislation upon us are now scrambling to exempt themselves and their supporters.
Originally posted by abecedarian
Originally posted by NavyDoc
So the very people who pushed this legislation upon us are now scrambling to exempt themselves and their supporters.
And the people who vote for these hypocrites won't be told this is going on.