House of Representatives passes delay of medical device tax

The U.S. House of Representatives has passed a $650 million tax break package that will delay the 2.3% tax on medical devices by a minimum of 2 years.

The measure was approved by a 318-109 vote and is the first part of a deal to avoid a potential government shutdown. The legislation will go to the Senate upon House approval of the $1.1 trillion omnibus spending bill, which is expected to occur on Friday.

The medical device tax, which was enacted as part of the Affordable Care Act, will be eligible to be re-instituted during the 2018 fiscal year. According to a recent estimate from the Non-Partisan Joint Committee on Taxation, the delay is estimated to subtract $3.4 billion from the federal budget between 2016 and 2017. Previous estimates from Congressional Budget Office had the delay creating a budget deficit of $1.83 billion in 2016 and $1.96 billion in 2017.

The White House previously indicated that President Obama would sign a tax-break package into law upon congressional approval.

Reference:

www.c-span.org/video/?402253-1/us-house-debate-omnibus-federal-spending-bill-tax-extenders&live