[Congressional Record Volume 158, Number 65 (Wednesday, May 9, 2012)]
[House]
[Page H2457]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           MEDICAL DEVICE TAX

  (Mr. PITTS asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. PITTS. Mr. Speaker, yesterday, the Energy and Commerce Health 
Subcommittee approved bipartisan legislation to reauthorize and reform 
the Food and Drug Administration user-fee program. This bill will 
smooth the process of reviewing medical devices and drugs, increasing 
transparency and predictability. It's a big step in the right direction 
for helping American companies continue to lead the world in medical 
research. Unfortunately, the medical device industry faces a huge 
setback starting next year.
  Last week, Senator Toomey and I visited Precision Medical Products in 
Denver, Pennsylvania. In a roundtable meeting, we heard from a dozen 
medical device companies about how the new ObamaCare medical device tax 
will destroy jobs and stall research. This new 2.3 percent tax is on 
all revenue--and not just profits--meaning even if a company is 
struggling to break even or even losing money, they have to pay this 
hefty tax bill. This new tax is over and above the new user fees that 
they have agreed to pay.
  Already, some companies have cut back. Yesterday, we took a big step 
forward. But if this new tax becomes reality next year, we could still 
lose the edge on medical device equipment. It should be repealed.

                          ____________________