Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), released the following statement in response to tax-writing committee Chairmen Camp and Baucus as they begin their nationwide listening tour in favor of a simpler, fairer U.S. tax code:
"AdvaMed commends the efforts of Ways and Means Committee Chairman Dave Camp (R-MI) and Senate Finance Committee Chairman Max Baucus (D-MT) to advance comprehensive U.S. tax reform to improve America's competitiveness and rebuild our nation's economic future. We look forward to working with them as they develop their legislation.
"As they begin their Tax Reform Tour in the Minneapolis-St. Paul, Minnesota area, it is important to note the medical technology industry supports over 35,000 jobs in the state and more than two million jobs nationally. In the context of reforming the tax code to make U.S. business more competitive, repealing the medical device excise tax that went into effect in January is a critical first step to protecting these jobs and ensuring a level playing field for Minnesota and the rest of the U.S. in the global economy.
"America's current corporate tax structure is a key factor contributing to the decline of the competitiveness of the American medical technology industry. U.S. corporate tax rates are the highest in the world. The U.S. has failed to match competitor nations in positive tax incentives to attract knowledge-based, high-value manufacturing industries like medical technology. The U.S. tax code provides few incentives to invest in the pre-profit start-up companies that are the backbone of the innovation system.
"The device tax makes an already uncompetitive tax system for the medical technology industry far less competitive and threatens our industry's continued world leadership. It raises the total tax burden for our industry by a whopping 29% – resulting in fewer job opportunities, lower R&D investment to fuel tomorrow's treatments and cures, and/or higher health care costs.
"Legislative measures to repeal the device tax passed the House last summer and the Senate in March with overwhelming bipartisan majorities. Congress and the President must act now to finish the job and repeal it."