AdvaMed Statement on House Jobs Bill
Tuesday, September 16, 2014
Posted by: Angela King
September 16, 2014
WASHINGTON, D.C. – Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), issued the following statement on the release of an omnibus jobs bill (H.R. 4) in the U.S. House of Representatives which includes language to repeal the medical device excise tax:
“AdvaMed commends the House for taking action on legislation that includes a repeal of the jobs-crushing medical device tax. AdvaMed also appreciates the House’s efforts to address other specific components of the tax code that are important to innovative and emerging growth medical technology companies.
“The problems with the medical device excise tax are well documented. According to a survey of AdvaMed members, 14,000 industry jobs have been lost, along with the forgone hiring of 19,000, resulting in a total negative direct industry employment impact of approximately 33,000 jobs to date. A recent report released by the Treasury Department’s Inspector General detailed a number of problems that the IRS has had in simply administering the tax, which just underscores that this policy is inappropriate for a dynamic and innovative sector like the medical device industry. AdvaMed supports the effort to eliminate the negative impact this tax has had and will have in the future.
“In addition, AdvaMed, in particular our Emerging Growth Company Council, welcomes the inclusion of several important tax policy changes in the jobs bill. These include: making the R&D tax credit permanent; increasing the amount small businesses may immediately deduct under section 179 for investments in property, equipment and computer software; and permanently increasing to 50 percent the amount of depreciating value in a business asset that a firm may deduct in the first year (known as ‘bonus depreciation’).
“These key provisions would not only provide needed certainty for tax planning purposes, but would allow companies – including entrepreneurial developers of advanced medical technologies – to invest more heavily in their businesses while encouraging job creation and economic growth across the country.
“With the proper incentives, the U.S. can continue to reap economic benefits from medical technology for decades to come. The tax policies and, most importantly, the repeal of the onerous medical device excise tax included in today’s House jobs package, will preserve these incentives in the U.S. for medtech firms for the foreseeable future.”
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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit www.advamed.org.
Source: AdvaMed http://advamed.org/news/121/advamed-statement-on-house-jobs-bill