On October 1, numerous Americans gained access to the new marketplaces mandated by Obamacare. While the health-care program is multifaceted, the medical device tax that came tied to the program has been another hot-button issue. The tax increased by 2.3 percent on gross revenues.
The tax that was put on medical device manufacturers forced such companies to lay off (or avoid hiring) about 33,000 workers, according to a survey completed by Advanced Medical Technology Association (AdvaMed). The AdvaMed report stated that about 14,000 of those workers were those who companies had to cut. The medical device tax is just one aspect of the Affordable Care Act that allows citizens to attain medical care.
Those on the other side of the issue counter that the medical-device industry can easily afford the extra tax without having to tax the industry. In order to repeal the tax over the next 10 years, Congress would need to come up with roughly $30 billion dollars. Those opposed to the tax are concerned that it will hurt productivity and innovation of smaller device companies that do not have the means to continue running with this required tax.