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Congress Once Again Proposing Repeal Of Medical Device Tax

Several of Indiana’s U.S. Representatives are once again co-sponsoring legislation that would repeal the Medical Device Tax.

Several Indiana companies have been pushing for a repeal since the tax took effect in 2013. Congress passed a two-year suspension of the 2.3 percent excise tax at the end of 2015.

But Indiana medical device manufacturers are still operating with a level of uncertainty about what will happen beyond that.

Executive Director of the Indiana Medical Device Manufacturers Council Kathy Heuer says the tax is stifling innovation.

"Some of our startups, which are not even profitable yet, still had to pay the tax because it’s truly on sales, not on your net profits," Heuer says.

Republican Representative Jim Banks is one of more than half a dozen Indiana lawmakers co-sponsoring the bill to repeal the tax. Lawmakers have unsuccessfully backed similar bills in the past, but Banks says he’s optimistic.

"This is the first opportunity we have with a Republican in the White House beginning next week, Republican majorities in the House and the Senate who overwhelmingly support repealing the medical device tax," Banks says.

More than 200 legislators are co-sponsoring the legislation and a similar bill is on file in the Senate.

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