House repeals Medical Device Tax
When Joe Donnelly provided a key vote for Barack Obama’s $1.76 trillion healthcare law, it slapped medical device companies in the country with a 2.3 percent tax; but in an obvious election-year ploy, Donnelly is now attempting to walk back his support of ObamaCare.
Indiana’s medical device industry is the fifth largest in the United States and as George Will noted recently, Cook Medical based in Bloomington, Indiana is not planning to open a U.S. factory a year. Zimmer, also based in Indiana, is laying off 450 and taking a $50 million charge against earnings.
Medical device companies employ more than 400,000 Americans and this burdensome tax could eliminate 10 percent of the jobs in the industry, while encouraging these companies to move their plants overseas.
As The Associated Press Reports:
The tax, which takes effect next January, applies to everything from replacement joints to imaging equipment but exempts consumer products like eyeglasses and bandages. … U.S. medical device makers employ more than 400,000 people. The industry’s largest trade group, AdvaMed, cites a study it commissioned that concluded the new tax could cost 43,000 of those jobs — about 10 percent — while doubling companies’ tax bills and encouraging them to move plants overseas. (Alan Fram, GOP plays offense in medical device tax fight, Associated Press, 06/05/12)
“The fact remains that when Nancy Pelosi and Barack Obama needed Joe Donnelly – he was there for them supporting ObamaCare ,” said National Republican Senatorial Committee (NRSC) spokesman Lance Trover. “No amount of election-year backtracking will make Hoosiers believe that somehow Joe Donnelly is now some kind of moderate when he’s spent the last three voting for the Pelosi-Obama agenda.”
“Donnelly’s Support Gives Democrats A Key Vote,” Said An Indianapolis Star Headline. (Maureen Groppe, “Donnelly’s Support Gives Democrats A Key Vote,” Indianapolis Star, 3/22/10)
“Indiana Rep. Joe Donnelly’s Decision Sunday To Back A Health-Care Overhaul Package Helped Give Democrats The Votes Needed To Pass The Bill. The outcome became assured after a group of anti-abortion Democrats that included Donnelly announced Sunday afternoon that they had reached an agreement with the White House over abortion coverage.” (Maureen Groppe, “Donnelly’s Support Gives Democrats A Key Vote,” Indianapolis Star, 3/22/10)