Former Sen. Bayh urges repeal of the medical device tax
Former Indiana governor and ex-Sen. Evan Bayh (D) urges his former colleagues to repeal the medical device tax in an op-ed for the Wall Street Journal.
Evan Bayh, the former governor and Democratic senator from Indiana who's now doing some lawyering for medical device companies, wants his former Senate colleagues to repeal the medical device tax before it goes into effect next year.
Calling it "ObamaCare's tax raid on medical devices" in an op-ed piece written for the Wall Street Journal, Bayh wrote that the tax will devastate a healthy U.S. industry that leads the world in developing medical technology.
"Given the fragile state of the U.S. economy, Congress must move quickly to redress the harm from this tax before it becomes irreversible," Bayh wrote. "The hit will be severe. For a typical company, a 2.3% tax on revenues equals a 15% tax on profits. When combined with a 35% corporate tax and state corporate taxes, the tax rate for the medical device industry will exceed 50% in most jurisdictions. Many marginally profitable businesses will then hemorrhage red ink, since they'll have to pay the excise tax whether they are making money or not."