WASHINGTON, D.C. – Today, Senator Rick Scott announced his co-sponsorship of the Protect Medical Innovation Act, which permanently eliminates the medical device tax – a 2.3 percent tax on the nation’s most innovative industries enacted under President Obama as part of the Affordable Care Act.

Senator Rick Scott said, “During my time as Governor of Florida, we returned $10 billion back to Florida’s hardworking taxpayers. My focus on cutting taxes and reducing burdensome regulations helped Florida businesses thrive and create nearly $1.7 million jobs in just eight years. I’m proud to work with my colleagues to build on Florida’s success and create an environment where businesses, small and large, can succeed. Florida is home to a variety of medical device companies, employing nearly 21,000 Floridians with high-paying jobs. Eliminating the burdensome medical device tax fosters innovation and helps Florida’s manufacturers succeed and create more jobs for families.”

Background on the medical device excise tax

• The 2.3 percent excise tax on medical devices took effect on January 1, 2013, but has been suspended since January 1, 2016.
• The tax applies to gross sales, regardless of whether company makes a profit, making it particularly damaging for small medical device companies.
• If it takes effect, the tax is projected to raise taxes by roughly $20 billion over the decade.

Destructive economic impact of the medical device excise tax

• According to the Department of Commerce, 29,000 jobs were lost in the industry while the tax was in effect from 2013 to 2015.
• Researchers estimate that there was a $34 million reduction in industry research and development while the tax was in effect.
• The American Action Forum Estimates 25,000 additional jobs would be lost by 2021 if the tax were to be implemented again.
   

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