Report: Medical device tax means a 30% spike in industry's federal tax burden
The medical device industry is expecting to pay about $2.5 billion to comply with the medical device tax, representing a nearly 30% increase in the industry's current federal tax burden.
Should the 2.3% medical device excise tax survive the coming onslaught of repeal lobbying, the industry will have to come up with about $2.5 billion to comply with the levy in 2013, according to new estimates.
Medtech industry lobby AdvaMed released the results of their latest analysis of the impact of the excise tax, which suggests that next year's total federal tab may be nearly 30% larger than the industry currently pays.
The analysis, commissioned by AdvaMed and prepared by Ernst & Young, estimated the 2013 medical device tax burden, including both the federal income tax and the new excise tax on medical device sales.