More than 20,000 Hoosiers work in medical device sales in the State of Indiana, helping to power the Hoosier economy. Leaders believe a federal tax on medical devices may be preventing more job growth.
“We can site instances in the State of Indiana where companies have changed plans to make investments and create jobs and industry in the Hoosier state because of this tax,” said Indiana Governor Mike Pence.
The medical device tax is a 2.3 percent excise tax that taxes sales directly, not just profits.
“This tax is on revenue. Manufacturers are being taxed even if they are losing money. So it is slowing down medical research and development,” said President of the Indiana Medical Device Manufacturers Council.