The medical device excise tax will reduce research and development spending and impede innovation if reinstated in 2020, according to a report from Minnesota trade group Medical Alley Association.
In the report, Medical Alley surveyed its members that will be affected by the return of the tax on Jan. 1, 2020. About 83% of survey respondents said they would be reducing research and development spending if the medical device tax is reinstated. Another 67% said they would be delaying or forgoing planned hiring and 47% said they would suspend plans to physically expand the business.