On the recordJuly 24, 2018
While we wait for one additional speaker. Mr. Speaker, let me just remind folks where we are right now. Think back to 2013, 2014 when this tax was first put in place. We heard earlier from one of our colleagues who had said: Do you know what? The medical device industry was a part of putting together the Affordable Care Act, and they agreed to this. Actually, that is a myth. It is not true. I have talked to numerous medical device manufacturers, small, medium, and large, as well as the associations, that said they had no part in agreeing to that. In fact, when this dollar amount came up as a part of the Affordable Care Act, they backed into it. There was some dollar amount assigned, and that is how he backed into a 2.3 percent excise tax. And, again, just a reminder, an excise tax is a tax on your sales and revenue, not on your profits. For companies that take 8 to 10 years to become profitable in the first place, that is a high hurdle when you are trying to attract new capital, new investors in order to take the risk that this new technology is going to be successful. You have already got to go through the FDA. You have got to go through a rigorous process, go through a gold standard, and then you have to make sure that you are going to potentially have CMS offer a reimbursement policy for your devices.…
