Ahead of St. Paul visit, Obama faces GOP plea to repeal medical device tax
February 24, 2014 — 3:37pm
Republican U.S. Rep. Erik Paulsen is urging President Obama to visit a medical technology company during his trip to the Twin Cities on Wednesday.
Paulsen wrote to the president over the weekend, asking for help to repeal the Affordable Care Act’s tax on medical devices.
Money raised from the 2.3 percent excise tax is intended to fund expanded health care coverage for upwards of 30 million Americans under President Obama's health care law.
But Paulsen has called the tax, which began in January 2013, a "tax on innovation."
Minnesota is home to hundreds of medical device companies that employ more than 30,000 people.
Last week, the medical device industry’s major trade group, the Advanced Medical Technology Association, released a survey that says the tax cost the industry tens of thousands of job in 2013.
“This industry is an American success story, but it is being hit especially hard by the Medical Device Tax that passed as part of the Affordable Care Act,” a portion of Paulsen’s letter to the president reads. “With your support, we can repeal this onerous tax and protect jobs, expand high-tech manufacturing here at home, and create and provide more life-saving and life-changing technology to American patients.”
In 2012, the Obama administration threatened to veto Paulsen’s legislation, but congressional support for a repeal is growing.
Paulsen’s bill has more than enough support to pass the Republican-led House, but Senate Democrats have thus far been unwilling to deal a blow to one of the president's signature legislative accomplishments.
Minnesota U.S. Sens. Amy Klobuchar and Al Franken, both Democrats, have urged their colleagues to repeal the tax. The state’s entire House delegation also opposes the tax.
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