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1 Alec Fornwalt & Nicole Kaeding, New Research Provides More Reasons to Repeal the Medical Device Tax 1 (2018)

handle is hein.taxfoundation/nwrpmrp0001 and id is 1 raw text is: New Research U 1ION Provides More Reasons to Repeal the Medical Device Tax FISCAL FACT Alec Fornwalt Nicole Kaeding No. 599 Policy Analyst Director of Special Projects July 2018 Key Findings * The medical device tax is a 2.3 percent excise tax on the value of medical devices sold domestically. The tax was packaged in the Affordable Care Act to help cover its cost. * The medical device tax fails most tests for good policy and is fundamentally flawed in its structure. * New research shows that many of the predicted negative effects from the medical device tax occurred, both to the companies and to consumers. * In 2013, the medical device tax lowered industry research and development spending by $34 million. * The tax is responsible for the loss of approximately 21,800 jobs from 2013 to 2015. * The tax has been delayed by Congress twice, but the tax still exists. While full repeal is difficult due to federal revenue constraints, ideally, suspensions would exist for longer than two-year intervals. The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) nonprofit organization. @2018 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org