GOP Reform Did Not Halt Resumption Of ACA’s Medical Devices Tax
A 2.3 percent excise tax on medical device manufacturers went back into effect Monday after it had been suspended for two years. But the industry is hoping that Congress will still blunt the impact.
The Associated Press:
Tax On Medical Devices To Resume After 2-Year Suspension
While much of corporate America will enjoy a tax cut in the new year, one industry is getting a tax increase it has fought hard but so far unsuccessfully to avoid. A 2.3 percent excise tax on medical device manufacturers went back into effect Monday after a two-year hiatus. It was originally imposed in 2013 as one of several taxes and fees in the Affordable Care Act that pay for expanded health insurance under the law. (Salsberg, 1/1)
Stat:
Medical Device Tax Hits Jan. 1; Opponents Try To Ease Effects
For the first time in years, the medical device tax will take effect Jan. 1, after Congress left town without delivering on a long-promised delay or repeal. But opponents of the tax, both in industry and on Capitol Hill, aren’t giving up yet: They’re scrambling to find another solution that could offer some relief at the start of the new year. Already they’ve secured commitments from congressional leaders that they will delay or repeal the 2.3 percent excise tax early in 2018. And now some lobbyists and lawmakers are working with the Treasury Department in hopes that the Trump administration will waive the penalties associated with problematic compliance in the early weeks of the year, before Congress might make good on its effort to address the tax. That will help companies whose accounting and reporting systems might not be ready for the Jan. 1 start date, an industry official said. (Mershon, 12/22)
