Obama Opposing Delaying Medical Device Tax

Obama Opposing Delaying Medical Device Tax

Says Health Care Reform Will Create More Customers for Industry, Offsetting Tax Costs

December 18, 2012
Manufacturing Group
Devices/Implants/Equipment Materials Quality/Metrology People/Facilities

As industry leaders, along with some members of Congress, work to postpone a new tax on medical devices, President Obama says he does not support delaying the tax.

During a television interview with WCCO in Minnesota, the president said he opposes delaying the implementation of the tax, set to go into effect Jan. 3.

Obama said the health care reform will help offset the cost of the new tax by generating more customers for the industry.

“The health care bill is going to provide those health care companies 30 million new customers. It’s going to be great for business, and they’re doing really well right now, and they’re going to get 30 million more customers as a consequence, so this additional tax essentially comes back to them as new customers,” he said.

Many in the medical device industry oppose the tax, saying the cost of it will force them to cut funds for research and eliminate jobs.