3. Is the medical device tax repeal going to be permanent?
The medical device industry was hit with a 2.3% medical device excise tax under Obamacare. The excise tax was put on a two-year hold in December 2015.
Trump and many fellow GOP officeholders support tax cuts, and the medical device industry could be one of the first to see these tax cuts. Making the elimination of the tax permanent is a top priority for medical device industry lobbyists.
Permanent elimination of the medical device excise tax may not be the only upcoming good news when it comes to taxes. Many medical device companies have their money overseas because of America’s relatively high corporate income tax rate, according to an S&P report. A major corporate tax overall could reduce the costs of bringing the money back to the U.S., either permanently or through a tax holiday.
Gregory Dennis says
Whatever changes the new Administration and Congress make to the ACA will inevitably be known as Trumpcare. And that seems to have given them great pause. Latest analysis is that they won’t do anything to the ACA this year, because it’s a complex set of programs and changing it will have many ripple effects — both on the healthcare industry and everyday Americans.
I hope we can refrain from big changes in the ACA for the sake of patients who would love coverage under many of the proposed changes, and for the sake of businesses, which need certainty and are facing great uncertainty if the ACA is repealed without a clear and sensible replacement.
Chris Newmarker says
Thanks for the comment, Gregory. Good points.