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US Senate votes 79-20 to repeal medical device tax

The Senate voted Thursday to approve a budget amendment calling for an end to the medical device tax outlined in President Obama’s health care reform bill.

The amendment’s stated purpose was “To promote innovation, preserve high-paying jobs, and encourage economic growth for manufacturers of lifesaving medical devices and cutting edge medical therapies.”

The measure, which called for the repeal of the 2.3% tax, passed in a vote of 79 to 20.

The vote was quickly praised by a coalition of 3 medical device manufacturers.

“Momentum is clearly growing in Congress to repeal the medical device tax as senators continue to hear from their constituents that the impact is real,” said Gail Rodriguez, Executive Director of the Medical Imaging and Technology Alliance.

The group estimates that manufacturers have paid $388 million to the IRS so far this year, “reallocating funds that could otherwise be directed towards investment in job creation and research and development.”