Medical Channel: Device tax could cost 165,000 jobs


The medical device excise tax has already cost approximately 33,000 jobs and ultimately could eliminate as many as 165,000 jobs, according to a new survey conducted by US medtech lobbying association AdvaMed.

Almost one-third of companies responding to the survey said they had reduced R&D spending as a result of the tax and 10% said they had relocated or expanded manufacturing outside the United States. Going forward, more than half of respondents said they would consider reducing employment if the device tax is not repealed and 50% indicated that they would offset the tax burden by reducing R&D initiatives.

The 2.3% excise tax on the revenue of medical device manufacturers is part of the Affordable Care Act and went into effect at the start of this year.
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