Rep. Scott Peters joined a bipartisan group calling for repeal of the medical device tax included in the Affordable Care Act, saying the tax unfairly penalizes manufacturers of innovative technology.
He noted the San Diego region supports a medical device industry comprised of 240 companies employing more than 11,000 workers.
“At a time when the main concern for majority of Americans is job creation, Congress needs to be supporting the growth of businesses that make their products in America and employ American workers,” Peters said Thursday. “San Diego’s and America’s economic future depends on the success of our innovators. Congress needs to support them by repealing this tax.”
“As an advocate for innovation companies, CONNECT applauds the current effort to repeal the Medical Device Excise Tax which passed as part of the Affordable Care Act,” said Greg McKee, CEO of CONNECT, an organization that supports local startups.
“The tax is inequitable, hitting small and medium sized companies much harder than larger companies that can absorb the costs, thereby inhibiting innovation and growth.”
The tax levies a 2.3 percent fee on medical devices ranging from artificial joints to MRI machines and is projected to raise almost $30 billion over the next decade.
Peters, a Democrat, represents central San Diego County including Poway, Coronado and large portions of the City of San Diego.
