Gov. Mike Pence continues push for medical device tax repeal

Indiana - Lawmakers are currently considering H.R. 160, known as the Protect Medical Innovation Act of 2015, which would eliminate the tax.

Governor Mike Pence's Letter to Indiana's Congressional Delegation

Dear Members of the Indiana Congressional Delegation:

This week the House of Representatives is scheduled to consider H.R.160, the Protect Medical Innovation Act of 2015. This legislation eliminates the 2.3 percent excise tax on medical devices that was originally passed as part of the Affordable Care Act, and on behalf of the state of Indiana and our large medical device industry, I write today to encourage you to vote for this critical legislation.

The life sciences industry has a $59 billion impact on Indiana’s economy, employing more than 56,000 Hoosiers with 20,000 of them in medical device-related jobs. Indiana is second in the nation, behind California, in exports of life sciences products at a value of more than $9.8 billion. The medical device industry provides good-paying jobs, with companies paying 56 percent more than the average wage in Indiana. More than half of medical device industry jobs do not require a college degree, meaning that this work is available to a wide range of Hoosiers.

This industry is vital to Indiana’s economy and the health and well-being of people across the nation and world. Yet because of the medical device tax, research and development have been reduced, expansion plans have been put on hold, and some manufacturers have moved product lines outside of the country.

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Rather than stifling this industry, it should be encouraged to innovate, expand, and grow jobs domestically, preferably in Indiana. As a state, we will continue to do our job to support this important sector through initiatives like the Indiana Biosciences Research Institute and creating a hospitable business environment. In fact, Indiana was recently found to have the lowest business tax burden in the Midwest, and the 7th lowest in the nation. We have a strong history with life sciences and medical devices in Indiana that we are well-poised to build upon in the future, but eliminating the federal medical device tax is a key step to our future success.

I am encouraged by the previous support from the Indiana delegation for this legislation. The Protect Medical Innovation Act and its companion Senate bill have been cosponsored by nine bipartisan, bicameral members of the Indiana delegation. Given the strong support for this legislation, upon passage in the House I hope the Senate will promptly pass this bill and send it to President Obama for his signature.

Thank you for your consideration and your service in the Congress and to our nation.

Sincerely,

Michael R. Pence Governor of Indiana

Source: Inside Indiana Business