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New excise tax on medical device industry could lead to substantial job losses
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The 2.3% excise tax on the medical device industry that will take into effect in 2013 is slated to lead to more than 40,000 job losses, totaling billions in employment compensation losses, according to a study funded by the Advanced Medical Technology Association.
The excise tax, one of the provisions of the new health care law, will be applied to manufactured devices, with the exception of devices that are generally purchased by consumers at retail for individual use and other products at the discretion of the Secretary of the Treasury.
According to the study, the tax, which will roughly double the medical device industry’s total tax bill, could lead to 43,000 job losses in the medical device industry and employment compensation losses in excess of $3.5 billion.