Minnesotans are supposed to be troubled by the medical device tax, but the campaign against it is hollow. The tax, a 2.3-percent levy on sales of medical devices, was written into law under the Affordable Care Act as a way to help pay for expanding access to medical insurance. The tax's repeal is a recurring cause in the news, especially during the current shutdown standoff, and nowhere more so than here in Minnesota, home of many leading device makers.
To judge from the howls and furrowed brows, this thing is worse than the Beard Tax of 1533.
Undoing this tax has become a personal obsession for two members of Minnesota's congressional delegation, Rep. Erik Paulsen, a Republican, and Sen. Amy Klobuchar, a Democrat. It has the support of Democratic Sen. Al Franken and Rep. Keith Ellison as well.
To have Democrats favoring this repeal is, of course, unusual. The ACA is the signature accomplishment of their standard-bearer. Moreover, it's hard to imagine that a single Minnesotan pulled the lever for Franken or Ellison to reign in corporate taxes. But Washington changes people.
As opposed to the sweeping GOP fatwa against all things Obamacare, the Democrats depict the device tax as a bad part of a good law, an error that can be tossed aside as long as replacement funding is found. It's been a heroic effort. Echoing the arguments of the device industry, the delegation has depicted the tax as an unfair burden that will kill jobs and stifle innovation. Because even hard-left Democrats from device-making states like Massachusetts (Sen. Elizabeth Warren) and Illinois (Sen. Dick Durbin) have opposed the tax, it's increasingly presented as one of the few, if not only, issues that can unite the two parties.
The repeal effort is undying, floated again and again as the only thing that could end the current stalemate. Imagine the good fortune of the people at AdvaMed, the med-tech lobbying arm. Their cause has been successfully depicted as the great uniting issue of our times.
Under the proposed trade-off, Tea Party Republicans would vote to raise the debt limit, and for their troubles, Democrats would send them back to their gerrymandered districts with a scalp from Obamacare in the form of the device tax.
It's hard to fault Paulsen for his zeal. His party is single-minded about opposing taxation in all forms, and as a legislator opposed to the ACA, his tone is at least nonapocalyptic. He makes using your congressional seat as an extension of private industry look somehow less dishonorable than it is. But if Franken and Klobuchar believe they are doing anything greater than advancing the pet grievance of a powerful lobby, it's a hard sell. The crying has been loud, but the outrage is phony.