February 3, 2012
WASHINGTON, D.C. – Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed) today released the following statement following the release of proposed regulations by the Internal Revenue Service to implement the $20 billion medical device tax:
The release today of proposed regulations to implement the $20 billion medical device tax scheduled to go into effect next year highlights the need for prompt action by Congress and the Administration to repeal this anti-competitive, job-killing tax.
“Studies have shown the tax will cost jobs – as many as 43,000 are at risk — at a time when the American economy is struggling and U.S. medical technology leadership in the world market is threatened by competitor nations who have grown their industries through more favorable tax and regulatory policies.
“The anticipated tax has already forced companies to lay off workers and to reduce critical R&D that will help drive the next wave of treatments and cures.
“Failure to repeal the device tax flies in the face of the President’s comments during the State of the Union about the need to reform our tax system to make our nation more competitive in the world market, a view shared by members of Congress from both parties. We urge the Administration and Congress to act swiftly to repeal this tax.
“We appreciate the time and effort IRS staff have spent reviewing our comments and considering the issues we raised. Implementing the tax will create a number of complex administrative and technical burdens that must be addressed. The unique characteristics of our industry make it ill-suited for blanket application of existing excise tax authorities, which were drafted for other industries at an earlier time. We will be carefully examining the proposed regulations.”
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AZBio partners with AdvaMed to monitor, educate and inform our members and our leaders on key issues that affect member companies that produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed and AZBio members range from the largest to the smallest medical technology innovators and companies. For more information about AdvaMed, visit www.advamed.org