When President-elect Donald Trump steps enters the White House Jan. 20, one of the first business tax breaks he makes will likely revolve around the medical device industry, reports Reuters.
Here are five things to know.
1. Lawmakers, lobbyists and industry executives expect Mr. Trump to completely repeal the Medical Device Tax, which was imposed in 2013 as a funding mechanism for the ACA, according to the report.
2. The Medical Device Tax entails a 2.3 percent excise tax on the sale of certain medical devices, payable by the manufacturer or importer of the device.
3. Immediately following the Nov. 8 election, the Advanced Medical Technology Association — an industry lobbying group — wrote a letter to Mr. Trump and Vice President-elect Mike Pence, calling for the permanent repeal of the tax.
4. Scott Whitaker, AdvaMed's president, wrote in the letter: "The medical device tax has been a significant drag on medical innovation and resulted in the loss or deferred creation of jobs, reduced research spending and slowed capital expansion," according to Reuters.
5. Last year, in response to industry pressure, Congress temporarily suspended the excise tax on the sale of non-retail medical devices like pacemakers, heart valves and artificial hips.
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