A coalition of medical device manufacturers has made a first semimonthly medical device tax payment to the Internal Revenue Service (IRS) of $97 million, a tax that it says is threatening hundreds of thousands of jobs and innovation.
The coalition, which includes the Medical Imaging and Technology Alliance (MITA), the Advanced Medical Technology Association (AdvaMed), and the Medical Device Manufacturers Association (MDMA), said the payment represents money that would otherwise be available to invest in research and development and American job growth.
Under the 2.3% device tax, device manufacturers are now required to pay an estimated average of $194 million per month (with a payment of approximately $97 million due semimonthly), the coalition said. The tax threatens a medical device industry that employs more than 400,000 workers nationwide, generates approximately $25 billion in payroll, pays out salaries that are 40% higher than the national average ($58,000 versus $42,000), and invests nearly $10 billion in research and development each year, according to the coalition.
The coalition is urging Congress to repeal the tax.
