Two-Year Suspension of Medical Device Tax Wins Industry Appreciation

AdvaMed chairman Vincent Forlenza, chairman, president and CEO of Becton Dickinson & Co. stated that “we are extremely appreciative of the bipartisan efforts to include a two-year suspension of the medical device tax in the tax extenders legislation.”
According to an article on the Waltonian:

A spending and tax package hammered out in Congress would halt a tax on medical device manufacturers, giving a big win to Republicans and companies who have pushed for undoing the levy.
The Advanced Medical Technology Association (AdvaMed), the Medical Imaging & Technology Alliance (MITA) and the Medical Device Manufacturers Association (MDMA) today commended Congress for including suspension of the medical device excise tax in year-end legislation and urged its swift passage. Political consultants believe there is now an 80% likelihood that the tax extender legislation passes both the House of Representatives and the Senate. The tax, which took effect in 2013, helps fund the Affordable Care Act.
The current legislation package has a January 1, 2016 deadline for renewing various expiring tax credits. A report from the nonpartisan Congressional Research Service, however, concluded that the tax is most likely to affect consumer prices, not company profits.

 
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