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Congressman Jim Banks (IN-03) and a bipartisan group of House lawmakers wrote a letter to Speaker Paul Ryan urging him to prioritize medical device tax relief before the end of the year. The current suspension of the medical device tax ends on January 1, 2018.

“The medical device industry is extremely important to northeast Indiana, and I strongly support a permanent repeal of the medical device tax,” said Banks. “This tax hurts consumers, restricts innovation and jeopardizes Hoosier jobs. Repealing this tax has broad bipartisan support in both chambers of Congress.”

The full text of the letter, signed by 180 members of Congress, is below:

October 24, 2017

The Honorable Paul Ryan

Speaker of the House

United States House of Representatives

H-232 The Capitol

Washington, D.C. 20515  

Dear Speaker Ryan,

We write to urge you to work with the Committee on Ways and Means to ensure inclusion of medical device tax relief in legislative vehicles being considered by the House before the end of the year. The suspension of the medical device tax expires on January 1, 2018, and it is critical to the health and sustainability of this vital American manufacturing industry that this tax is not once again applied to its products. This looming tax increase will impact medtech innovation and job creation, threatening this industry and the constituents we serve.

The medical device industry, which includes hundreds of small businesses, needs certainty to continue its research and investment in critical life-saving innovations. The medical device industry directly employs 400,000 Americans. The industry is primarily comprised of small businesses – of the 6,500 medical device manufacturers in the United States, approximately 80% employ fewer than 50 employees.

Patients who rely upon these innovative technologies that improve their health will ultimately suffer the burden of this tax if it goes back into effect. Legislation to repeal the device tax enjoys broad bipartisan support as members from both parties recognize the impact this tax has on our constituents, both in access to the medical devices and diagnostic tools at the core of providing quality care, and in the hundreds of thousands employed by the industry.

Overall, the U.S. medical technology industry saw its jobs ranks fall by nearly 29,000 while the medical device excise tax was in effect, according to data from the U.S. Department of Commerce. A policy brief released by the American Action Forum (AAF) in March further underscores the impact of the device tax on medtech employment. According to AAF, if the tax resumes in 2018, up to 25,000 additional jobs could be lost by 2021. The net impact of permanently repealing the medical device tax could be in excess of 53,000 additional jobs, compared to what would occur if the tax remains in effect.

Finally, the 2.3% tax on revenue, rather than income, deters innovation, company formation, and economic growth. As companies plan their budgets for 2018, they will continue to move forward with decisions based on the assumption that the tax will return. Research and development is one of the first items to go to offset the tax, which undermines the future of the industry and erodes the long-run economic competitiveness of an important domestic manufacturing sector with facilities in 44 states. More importantly, smaller manufacturers have had to pay the tax upon their first sale, which deters capital investment in new firms and slows the growth of existing ones.

As the House looks ahead to the latter half of the year, it is crucial that we do not allow taxes to increase on this key industry. We owe it to our constituents to act, and we look forward to working with you to accomplish this goal.

Sincerely,

Congressman Erik Paulsen

Congressman Ron Kind

Congresswoman Jackie Walorski

Congressman Scott Peters

Congresswoman Mimi Walters

Congresswoman Suzan DelBene

Congresswoman Elise Stefanik

Congresswoman Ann McLane Kuster

Congressman Jim Banks

Congressman Raja Krishnamoorthi

Congressman Lamar Smith

Congressman Patrick Meehan

Congressman Todd Rokita

Congressman David Joyce

Congressman Andy Barr

Congresswoman Barbara Comstock

Congressman Leonard Lance

Congressman Jody Hice

Congressman Vern Buchanan

Congressman Glenn 'GT' Thompson

Congresswoman Susan W. Brooks

Congressman Steve Knight

Congresswoman Virginia Foxx

Congressman Charles W. Dent

Congressman Sean Patrick Maloney

Congressman Seth Moulton

Congressman Bradley S. Schneider

Congressman David Kustoff

Congressman Adrian Smith

Congresswoman Jacky Rosen

Congressman Rod Blum

Congresswoman Kyrsten Sinema

Congressman Josh Gottheimer

Congressman J. Luis Correa

Congressman Ryan A. Costello

Congressman Bill Johnson

Congressman Pete Aguilar

Congressman Mike Gallagher

Congressman Ami Bera

Congressman Raul Ruiz

Congressman Tom Graves

Congressman Glenn Grothman

Congressman F. James Sensenbrenner

Congresswoman Julia Brownley

Congressman Bill Flores

Congressman Scott DesJarlais

Congressman Mike Kelly

Congressman Andy Harris

Congressman John Katko

Congressman Brian Higgins

Congressman Keith Rothfus

Congressman Ken Buck

Congressman David G. Valadao

Congressman Gus M. Bilirakis

Congressman Ron Estes

Congressman Brett Guthrie

Congressman Tom MacArthur

Congressman Tony Cárdenas

Congressman Jason Lewis

Congressman Darin LaHood

Congressman Ralph Norman

Congressman Ted Budd

Congressman Kenny Marchant

Congressman Eric Swalwell

Congressman Jason Smith

Congressman Peter King

Congressman Tim Walberg

Congresswoman Susan Davis

Congressman Vicente Gonzalez

Congresswoman Terri Sewell

Congressman Marsha Blackburn

Congressman Salud O. Carbajal

Congressman David P. Roe, MD

Congressman Ralph Abraham, M.D.

Congressman Mark Amodei

Congressman Jodey Arrington

Congressman Brian Babin

Congressman Lou Barletta

Congressman Jack Bergman

Congressman Mike Bishop

Congressman Rob Bishop

Congressman Diane Black

Congressman Mike Bost

Congressman Brendan F. Boyle

Congressman Dave Brat

Congressman Larry Bucshon, MD

Congresswoman Cheri Bustos

Congressman Bradley Byrne

Congressman Ken Calvert

Congressman Buddy Carter

Congressman Liz Cheney

Congressman Mike Coffman

Congressman Tom Cole

Congressman James Comer

Congressman Carlos Curbelo

Congressman Rodney Davis

Congresswoman Debbie Dingell

Congressman John J. Duncan, Jr.

Congressman Tom Emmer

Congressman Dwight Evans

Congressman Blake Farenthold

Congressman John J. Faso

Congressman A. Drew Ferguson, IV DMD

Congressman Brian Fitzpatrick

Congressman Chuck Fleischmann

Congressman Trent Franks

Congresswoman Tulsi Gabbard

Congressman Bob Gibbs

Congressman Paul A. Gosar, D.D.S.

Congressman Garret Graves

Congresswoman Karen Handel

Congressman Gregg Harper

Congressman Jeb Hensarling

Congresswoman Jamie Herrera Beutler

Congressman Trey Hollingsworth

Congressman Bill Huizenga

Congressman Randy Hultgren

Congressman Duncan Hunter

Congressman Will Hurd

Congressman Darrell Issa

Congresswoman Lynn Jenkins

Congressman William R. Keating

Congressman Trent Kelly

Congressman Derek Kilmer

Congressman Adam Kinzinger

Congressman Doug Lamborn

Congressman Bob Latta

Congressman Ted Lieu

Congresswoman Mia Love

Congressman Blaine Luetkemeyer

Congressman Stephen F. Lynch

Congressman Brian Mast

Congressman Luke Messer

Congressman Paul Mitchell

Congressman Alex X. Mooney

Congressman Markwayne Mullin

Congresswoman Stephanie Murphy

Congressman Dan Newhouse

Congresswoman Kristi Noem

Congressman Donald Norcross

Congressman Tom O'Halleran

Congressman Jimmy Panetta

Congressman Scott Perry

Congressman Collin Peterson

Congressman Bruce Poliquin

Congressman John Ratcliffe

Congressman Tom Reed

Congressman Dave Reichert

Congressman Mike D. Rogers

Congressman Dana Rohrabacher

Congresswoman Ileana Ros-Lehtinen

Congressman Dennis A. Ross

Congressman Edward R. Royce

Congressman Steve Russell

Congressman David Schweikert

Congressman David Scott

Congressman John Shimkus

Congressman Bill Shuster

Congressman Lloyd Smucker

Congresswoman Jackie Speier

Congressman Chris Stewart

Congressman Thomas R. Suozzi

Congresswoman Claudia Tenney

Congressman Pat Tiberi

Congressman Scott Tipton

Congresswoman Dina Titus

Congressman Paul D. Tonko

Congressman Dave Trott

Congressman Michael R. Turner

Congressman Fred Upton

Congressman Juan Vargas

Congressman Tim Walz

Congressman Roger Williams

Congressman Joe Wilson

Congressman Rob Woodall

Congressman Kevin Yoder

Congressman Ted Yoho

Congressman Lee Zeldin

Congressman Neal Dunn

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Interested members of the media may contact Anna Swick at anna.swick@mail.house.gov