Paulsen Statement on IRS Medical Device Tax Regulation
Washington, D.C. (Wednesday, December 5, 2012)– Representative Erik Paulsen (MN-03), Acting Chairman of the Ways and Means Subcommittee on Human Resources, released the following statement after the Internal Revenue Service (IRS) issued the final regulation on how the new nearly $30 billion tax on medical devices will be implemented. The IRS final regulation rejects most of the comments and suggestions received from manufacturers, doctors, and small businesses. Now, Minnesota’s 400 medical device innovators will need to scramble to determine which of the thousands of products they manufacture will be subject to the tax, how they will pay, and how the tax will affect their long term business decisions, before the 2.3% tax goes into effect in under a month. Rep. Paulsen’s legislation to repeal the medical device tax passed the House overwhelmingly in June and awaits action in the U.S. Senate.
“Just yesterday, I met with a small business CEO from St. Paul who explained the devastating impact the device tax would have on his business,” said Rep. Paulsen. “With the tax taking effect, he will have six fewer employees and delay bringing two new life-improving products to market. Pure and simple, this is bad policy and it’s clearly costing jobs. The regulations released by the IRS today, just 26 days before the tax goes into effect, are placing further burdens on the backs of med tech small businesses that are credited with creating thousands of jobs for our state. There is still time to stop the regulations and stop the tax, but the Senate must act now.”
Click here to see this story on Rep. Paulsen’s website.