Here’s what you should know:
1. The 2.3 percent tax on medical device sales was passed as part of the ACA. The tax was suspended in 2016 through the end of 2017. It was expected the tax would be repealed as part of the Republicans’ tax reform policy, but it was unexpectedly excluded.
2. The pending reinstatement has caused panic in the medical device industry, which is heavily petitioning the White House to take action.
3. Reps. Erik Paulsen, R-Minn., and Jackie Walorski, R-Ind., introduced legislation that would suspend the tax for another five years last week. The medical device industry donates heavily to Mr. Paulsen.
4. Despite the recently proposed legislation, device makers are worried legislators will be put off voting on the issue until next year.
5. Republican legislators tried to permanently repeal the device tax as part of healthcare reform, but failed to do so in 2017.
6. Before the tax was suspended, Forbes reports the IRS collected between $1 and $2 billion from the tax. The Joint Committee on Taxation said a full repeal of the tax would cost the U.S. Treasury $20 billion over a decade.
7. Device makers argue the tax would hurt medical innovation, especially at small firms.
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