About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Kyle Pomerleau, The ACA Medical Device Tax: Bad Policy in Need of Repeal 1 (2013)

handle is hein.taxfoundation/ffdgexz0001 and id is 1 raw text is: FONAINFisa F act April 9, 2013 No. 364 The ACA Medical Device Tax: Bad Policy in Need of Repeal By Kyle Pomerleau Introduction On March 21, the Senate voted 79 to 20 to pass a nonbinding budget amendment encouraging the repeal of the Affordable Care Act's medical device excise tax. This is a 2.3 percent tax on total sales of taxable medical devices by medical device manufacturers that went into effect on January 1, 2013. Like other excise taxes, this tax is harmful and will create distortions in the medical device industry, likely leading to higher health care prices for consumer, lower employment, and less innovation. Additionally, the tax is complex and creates additional compliance costs for firms. These consequences argue for the permanent repeal of the tax. The Medical Device Tax How does this tax work? The medical device tax operates like a typical excise tax, which increases the per-unit price of a good. However, unlike common excise taxes such as the flat per-unit taxes on cigarettes and alcohol, this tax is a percent of the sales price. This 2.3 percent tax is levied on the manufacturer or importer before a taxable medical device is sent to the wholesaler or hospital. Purpose of this Tax Introduced in the Affordable Care Act, the medical device tax is predicted to raise $3.2 billion dollars each year on average for the next ten years.1 Proponents of the tax have also argued that the tax will act like the Joint Committee on Taxation, Estimated Revenue Effects of the Amendment in the Nature of a Substitute to H.R. 4872, The Reconciliation Act of20 0 (Mar. 20, 2010),

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most