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Research Shows that A Permanent Repeal of the Medical Device Tax Could Recover 28,000 Jobs for the Industry BY ANDREW VAHRADIAN, MARCH 3, 2017

The American Action Forum (AAF) estimates that the medtech industry could recover the 28,000 jobs that were terminated during the implementation of the the Affordable Care Act's 2.3% medical device excise tax by 2021 if Congress permanently repeals the tax this year.

The tax went into effect in January 2013 and pertained to domestic medical device sales. In December 2015, Congress passed the Omnibus Appropriations Act, a $1.1 trillion funding bill that negated another government "shut down" and kept the U.S. federal government functioning until September 30, 2016. Within this legislation was a provision to suspend the medical device excise tax for 2016 and 2017.

According to AdvaMed, the leading lobbyist/trade group for the medical device industry, from 2012 to 2015, the number of U.S. medtech jobs declined 7.2% from 401,472 to 372,638, a loss of 28,834 jobs for the period.

The AAF also noted that if the tax was to be reinstated as opposed to being permanently repealed, such an action could result in a loss of an incremental 25,000 jobs within the industry by 2021. AAF based its findings on employment data from the Department of Commerce and tax-revenue collection projections from the White House Office of Management and Budget.

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