In a letter to both Democratic and Republican leadership, a bipartisan group of Arizona’s elected officials urged Congress to pass legislation to prevent the medical device tax from going back into effect.
Senators Martha McSally (D-AZ) and Kyrsten Sinema (D-AZ) and Representatives Tom O’Halleran (D-AZ01), Ann Kirkpatrick (D-AZ02), Paul Gosar (R-AZ04), Andy Biggs (R-AZ05), David Schweikert (R-AZ06), and Debbie Lesko (R-AZ08) all signed the letter. Only Representatives Raul Grijalva (D-AZ03) and Ruben Gallego (D-AZ07) were not signatories.
According to the Internal Revenue Service, the medical device tax is a 2.3 percent tax on both domestically manufactured and imported medical devices. The Consolidated Appropriations Act placed a two year moratorium on the tax starting in 2016. Another moratorium was imposed by Congress in January 2018, which lasts until December 31, 2019.
“As members of the Arizona delegation who support a repeal of the medical device tax, we write to urge bipartisan action before the current suspension of the tax expires on December 31, 2019,” the letter began. “We are extremely concerned its resumption will harm the sustainability of the medical device industry, which provides life-saving technology to millions of patients and supports 400,000 American workers, including over 17,000 in Arizona.”
The letter claims that if the tax was allowed to go into effect, industry will reduce investment and jobs will be lost.
All the signatories are cosponsors of the Protect Medical Innovation Act, which would permanently repeal the medical device tax.