Devicemakers have long complained that their business has been negatively affected by an excise tax placed on their devices by the Affordable Care Act. A think tank has now crunched the numbers on how the tax affected U.S. jobs.
The 2.3% tax on medical device sales resulted in the loss of over 28,000 jobs among devicemakers and and related industries when it was in effect between 2013 and 2015, according to the American Action Forum, which describes itself as a “center-right policy institute.” Health economist Robert Book based his post on U.S. Census Data and tax data from the federal government.
The tax, which is collected as a direct percentage of manufacturer sales, was suspended by Congress for 2016 and 2017. If Congress allows it to resume in 2018, AAF projects that an additional 25,000 additional jobs could be lost by 2021. AAF’s prediction is based on past job losses and lower-than-anticipated tax revenue, which would suggest a reduction in device sales.