The U.S. House of Representatives is set to repeal the medical device tax, a part of the Patient Protection and Affordable Act, according to a Washington Post report.
Here are eight important observations:
1. The 2.3 percent-tax, which went into effect in 2013, has generated opposition from both Republicans and Democrats.
2. Its opponents claim that the tax kills jobs and stifles innovation.
2. Earlier this month, the House Ways and Means Committee voted to repeal the tax.
3. A Senate version of the repeal bill is also being developed, with five democrats co-sponsoring it.
4. Notably, Sen. Elizabeth Warren has supported killing the tax.
5. However, proponents of the tax claim that the PPACA has created customers for the medical device industry.
6. Additionally, the White House has stated that it will veto the Congress' legislation because the tax pays for coverage provisions for millions of Americans.
7. Also, the House has not yet found a way to replace the approximately $24 billion in revenue that the tax would generate over the next decade or so.
8. The House will vote on the tax on Thursday, July 18. This will pressurize the Senate to schedule a vote on the tax soon.