It’s one down and one to go for the U.S. Senate as it revisits several harmful business-tax provisions of last year’s federal health care reform.
The Senate acted last week to repeal the provision that expanded 1099 tax expenditure reporting requirements on business. Now comes word that Senator Scott Brown intends to file a bill to repeal a medical device sales tax also contained in the health reform statute. That’s good news for Massachusetts and its 225 medical device manufacturing companies.
The 2.3 percent excise tax on medical device manufacturing firms is scheduled to go into effect after December 31, 2012. The tax would require companies to absorb the additional cost or to pass it along to customers, a situation that would drive up the already high cost of health care.
Massachusetts medical device manufacturing companies generate $6 billion in annual sales and employ 21,000 people. These employers contribute about 10 percent of Bay State exports.
Bipartisan support by members of the Massachusetts Congressional delegation to repeal the tax on medical devices would be welcomed by a critical segment of the state’s employer community.