U.S. Senator Kay Hagan (NC) joined with Senator Amy Klobuchar (D-MN)
in leading a letter with 16 other senators and senators-elect to Senate
Majority Leader Harry Reid urging a delay in the implementation of the
medical device tax that is scheduled to take effect on January 1, 2013.
"The medical technology industry directly employs over 400,000 people
in the United States and is responsible for a total of two million
high-skilled manufacturing jobs. Additionally, this industry is also
one of the few that enjoys a net trade surplus, significantly boosting
U.S. exports around the globe," the letter said. "As we work together to
develop a long-term solution to help move our economy forward, reduce
our debt and reform our tax code, we urge you to support delaying
enactment of this provision in a fiscally responsible manner."
"My number one priority is getting North Carolinians back to work,
and I am concerned about the effects of the planned medical device tax
in North Carolina," said Hagan. "The medical device industry is critical
to North Carolina's dynamic bioscience economy and when the tax was
first proposed, I opposed its adoption. Democrats and Republicans must
now work together to find a solution that does not harm our economic
recovery."
"On behalf of the North Carolina business community, I want to
express my concern over the threat that the medical device excise tax
imposes on this vital sector of our state's economy," said Lew Ebert,
president and CEO of the North Carolina Chamber. "We appreciate Senator
Hagan bringing this critical issue to the attention of Senate
leadership. A study done by AdvaMed shows that the planned
implementation of this tax could cost North Carolina hundreds of jobs
and an estimated $70 million in annual employment compensation. This
tax will cripple the bottom line of North Carolina companies, many of
which may not be able to survive this onslaught of taxation. Overall,
it will jeopardize jobs, the health of patients and the medical device
industry, nationwide."
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