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Florida Industry Letter - Repeal the MDT!
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Dear Members of the Florida Congressional Delegation,

 

Our great state is rich in medical technology manufacturers. Florida is home to one of our nation’s largest medical device economies – encompassing 662 device manufacturers employing nearly 21,000 Floridians, paying an average annual wage of more than $70,000. Florida ranks 2nd nationally in the number of FDA-registered medical device establishments. And the vast majority of Florida’s medical device manufacturers (80%+) are small, entrepreneurial firms, employing fewer than 25 people.

 

Florida’s innovative medical technology companies and the Florida Medical Manufacturers Consortium (FMMC) are very grateful for Congress’ decision to suspend the medical device tax in 2015, but this “pause” in the tax is set to expire on December 31, 2017. We strongly urge you to take immediate action to repeal the medical device excise tax – to ensure that this ill-conceived levy does not destroy innovation and patient care ever again.

 

The damage that this destructive policy has caused over the years is clear. According to the Department of Commerce, the industry lost 28,000 jobs during the time that the medical device tax was in place. Just recently, a study conducted by the American Action Forum showed that if the tax is reinstated in 2018, it could result in an additional loss of 21,000 jobs in this dynamic industry by 2021.

 

There continues to be overwhelming bipartisan support to put an end to the medical device tax, but the threat of the device tax returning in 2018 is already impacting medical technology innovation. A survey of over 100 med tech innovators by the Medical Device Manufacturers Association (MDMA) showed that 74 percent of respondents were reluctant to make additional investments in new treatments since the tax was only suspended for two-years as opposed to a permanent repeal policy. MDMA’s most recent survey shows that 88 percent of innovators would slow down hiring and/or have to eliminate jobs, and 83 percent would decrease investments in R&D if the device tax is reinstated. Any of these outcomes would be catastrophic to our state’s patients and economy.

 

We recognize that there are several outstanding issues that Congress must address before the end of the year, but it is critical that repeal of the medical device tax is included in one of these “must pass” legislative vehicles. We look forward to working with you over the remainder of 2017 to help put a permanent end to a destructive policy that only served to impede our common goals of growing Florida’s economy and improving patient care.

 

Sincerely,

 

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