The Pacific Research Institute released a new study that points to five core tax principles and how the 2.3% medical device tax violates each.
“As the congressional session winds down, Congress has some unfinished business – taking action to repeal the medical device tax,” said Wayne Winegarden, author of the report. “The medical device tax is bad tax policy that has increased patient costs, reduced access to life-saving technology, and reduced profits and jobs. Repealing the tax would bring many benefits, such as increased medical innovation and better-quality care for patients.”
The House of Representatives voted in July to permanently repeal the 2.3% medical device tax that was included in the Affordable Care Act in 2010. The tax has been highly criticized on both sides of the political aisle and has been suspended twice. It’s now up to the Senate to end the medical device excise tax once and for all.
Looking at the tax through the lens of ideal tax policy, the new study shows that the tax is a failure. Winegarden cites recent data showing that Congress isn’t even collecting the revenue it anticipated – $2.1 billion below estimates between 2013 and 2015. Winegarden is a senior fellow in business and economics at the Pacific Research Institute. He is also the principal of Capitol Economic Advisors.
The study points to the five core tax principles and how the 2.3% medical device tax violates each.
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