Gingrich stumps for medical device tax repeal

Former U.S. House Speaker Newt Gingrich this week published an editorial with StatNews urging members of Congress to repeal the medical device tax.

In the opinion piece, Gingrich calls the tax “misguided” and “job-killing” and suggested that the 2.3% tax, which was levied on medical devices as part of the Affordable Care Act in 2010, “threatens growth and innovation in America’s healthcare industry.”

The tax has seen two major delays so far, having been on hold since 2014, but is set to go back into full effect on 2020.

Gingrich claims that the tax unfairly affects smaller device manufacturers, saying that “it could be a death sentence for new startup companies trying to grow.”

“In short, the tax on medical devices would mean fewer jobs, less innovation, and higher healthcare costs through loss of efficiencies born from innovation,” Gingrich wrote in the editorial.

Gingrich referenced previous bipartisan efforts to repeal the tax, including a bill from departing Rep. Erik Paulsen (R-Minn.) which won votes from 226 Republicans and 57 Democrats this summer, but suggested that “it’s unlikely that Democrats will do anything now that helps make the case it is destructive to economic growth.”

He went on to urge Republicans to “get this done now” during their lame duck session before control was handed over to Democrats.

“Congress should permanently stop this tax by including language in one of the remaining appropriations bills that has yet to be decided. This would be the easiest, most expedient way to stop a terrible tax and protect innovation, growth, and the quality health care in the U.S.,” Gingrich wrote in the StatNews editorial.

The post Gingrich stumps for medical device tax repeal appeared first on MassDevice.

from MassDevice https://ift.tt/2BPIPLQ