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Today, U.S. Congressman Bob Latta (R-OH) joined colleagues in the U.S. House of Representatives in passing a key bill in support of American innovation in the medical field, and a repeal on the tax that threatens its growth. 

H.R. 160, The Protect Medical Innovation Act, repeals the burdensome 2.3 percent excise tax on the sale of medical devices imposed by the Patient Protection and Affordable Care Act, also known as ObamaCare.

“This is a tax against advances in the medical field. The future of this growing and innovative industry is confronted with much uncertainty following the implementation of the Affordable Care Act including this medical device tax,” said Rep. Latta. “As one of the most onerous taxes contained in the health care law, it must repealed.”

Data from a 2014 industry survey shows the tax resulted in employment reductions of 14,000 industry workers through 2013 with approximately an additional 4,500 jobs lost in 2014. 

Furthermore, the study forecasted the industry will forgo the hiring of over 20,000 employees over the next five years. Overall, the lost jobs and lack of growth caused by the tax will result in 39,000 fewer industry jobs.

From the survey:

Applying this ratio to jobs lost or forgone suggests that the impact of the tax on indirect employment could be as much as 156,000 jobs, for a total job loss due to the tax of 195,000 jobs. – Impact of the Medical Device Excise Tax (1/2015)

“This excise tax would have devastating consequences on the medical device industry. This is an irresponsible tax that threatens to stifle American innovation and job creation,” Latta continued. “We cannot jeopardize the benefits of medical advances for future generations in order to fill the coffers of the federal government today.”