[Congressional Record Volume 158, Number 86 (Friday, June 8, 2012)]
[Extensions of Remarks]
[Pages E1031-E1032]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 HEALTH CARE COST REDUCTION ACT OF 2012

                                 ______
                                 

                               speech of

                            HON. GENE GREEN

                                of texas

                    in the house of representatives

                         Thursday, June 7, 2012

  Mr. GENE GREEN of Texas. Mr. Speaker, I oppose H.R. 436 but I am 
opposed to the Medical Device Excise Tax. I support the Affordable Care 
Act, but just like all bills, it was not perfect.
  In Texas, the medical device industry supports nearly 55,000 jobs. It 
is an industry at the cutting edge of technological innovation

[[Page E1032]]

and is critical to addressing many of the health challenges we face now 
and will in future. I believe this industry, just like any other, 
should pay their fair share, but I am worried that a tax like this will 
chill innovation. The tax is on revenue and not profits, which will 
have a disproportionate effect on small and mid-sized companies. 
Medical devices are incredibly expensive to develop and it takes a lot 
of revenue to offset overhead. By taxing revenue, instead of profit, it 
adds additional costs. Most business taxes are calculated on the 
profits after expenses, but this one is not.
  A company near our district in Houston, Cyberonics, employs hundreds 
of Americans. A few years ago, I toured their facilities. I was 
surprised to learn that they did all of their manufacturing in-house, 
in Houston. This is an increasingly rare way to do business, but one we 
should encourage. Their company is a good example of American 
innovation and entrepreneurship. I am concerned that the way this tax 
is structured, it will negatively impact Cyberonics and companies like 
it. We should be taking steps to support research, design, and 
manufacturing job growth in our country.
  While I oppose this tax, I am also opposed to the way this bill pays 
for the repeal of the tax. We should not replace a poorly designed 
policy with more poorly designed policies. This bill shifts the cost on 
to low and middle income earners and potentially risks their health 
insurance coverage under ACA.
  We should find a better way to fix this and I want to work with my 
colleagues to craft a compromise that will not endanger American jobs 
but at the same time won't shift significant costs on to those who can 
least afford it.

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