INDIANAPOLIS, Ind. – More than 20,000 Hoosiers work in medical device sales in the State of Indiana, helping to power the Hoosier economy. Leaders believe a federal tax on medical devices may be preventing more job growth.
“We can site instances in the State of Indiana where companies have changed plans to make investments and create jobs and industry in the Hoosier state because of this tax,” says Indiana Governor Mike Pence.
The medical device tax is a 2.3% excise tax that taxes sales directly, not just profits.
“This tax is on revenue. Manufacturers are being taxed even if they are losing money. So it is slowing down medical research and development,” says President of the Indiana Medical Device Manufacturers Council.
The Indiana Medical Device Manufacturers Council says the medical device tax is killing jobs and slowing the process of inventing new life saving products. 27 of the top 50 Indiana life science companies are medical device companies, pushing out $10 billion of economic input. With such an effect on the statewide economy Governor Pence says he will continue to fight back against the medical device tax, which also pays for the affordable care act.
“For the sake of our global competitiveness, for the sake of this industry, and for the sake of jobs and opportunities we are going to work our hearts out,” says Governor Pence.
Proponents of the tax believe it is fair, but the Indiana Medical Device Manufacturers Council says patients suffer from less innovation.