Medical Device Tax

Congressman Jim Matheson
2013-02-14 18:33:32
Congressman Jim Matheson, 4th Congressional District of Utah Dear Friend, One of the many reasons that I am proud to represent the Fourth Congressional District is that it is home to so many innovators.� Just this week, my committee in Congress, the Energy and Commerce Committee, organized an event to share information and acknowledge local accomplishments in manufacturing and innovation.� During the hearing, I highlighted a heart catheter, a highly specialized medical device that is manufactured in our state and part of the life science industry, an area of tremendous growth.� Highly specialized medical device facilities in cities like Draper, Sandy, South Jordan and West Valley City employ a growing number of employees in our congressional district, and in our state. Beyond the pride we feel for being a center of innovation, the jobs created by companies like these are important for families and communities across Utah.� Making certain that we foster an environment where businesses can grow and thrive - and continue to hire Utah employees - is a top priority for me in Congress.� For this reason, I have long opposed legislation called the Medical Device Tax, a component of the Affordable Care Act (Obamacare) legislation, and have called for its repeal. Of specific concern to me is that the Medical Device Tax, which took effect on January 1, 2013, could have a chilling effect on the life science industry in Utah - where we have one of the highest concentrations of these jobs, which includes medical devices, in the country.� Over the next decade, the medical device tax could cost the industry nearly $30 billion and could affect the operating budgets of U.S. device companies, including those in our state. �I am concerned that increasing costs for this industry could drive the companies and the jobs they create off shore. I would prefer that these revenues remain with innovators like the companies in Utah�s Fourth District where it can be spent on our common priorities including: research and development of new technologies, expanding domestic facilities, and retaining jobs and job growth. �It is also worth noting that the average wage in the life science industry is higher than that in other private sector jobs, which is certainly the case in Utah. With an already inefficient and costly regulatory environment, a new burden like the Medical Device Tax will only further diminish the global competitiveness of the U.S. medical device industry - where we currently enjoy a position as the world's leader in innovation.� I have concerns that this could result in job loss, and a reduction of domestic investment by device manufacturers.� In a recovering economy, this is a recipe for disaster.� I am constantly looking for issues that matter to Utah families like yours that I am honored to represent. �If there are topics, like supporting innovation, growing jobs, or repealing burdensome regulations, which matter to you, please let me know.� I value your ideas and I look forward to hearing from you. � Sincerely, [image = matheson.congressnewsletter.net/images/user_images/JM_signature.gif] U.S. Representative 4th District of Utah � Survey/Question [survey] [image = matheson.congressnewsletter.net/common/images/sn-facebook.png]Share on Facebook [link 1] [image = matheson.congressnewsletter.net/common/images/sn-twitter.png]Share on Twitter [link 2] Tell a Friend* Survey/Question [survey]
February 14, 2013

Dear Friend,

One of the many reasons that I am proud to represent the Fourth Congressional District is that it is home to so many innovators.  Just this week, my committee in Congress, the Energy and Commerce Committee, organized an event to share information and acknowledge local accomplishments in manufacturing and innovation.  During the hearing, I highlighted a heart catheter, a highly specialized medical device that is manufactured in our state and part of the life science industry, an area of tremendous growth.  Highly specialized medical device facilities in cities like Draper, Sandy, South Jordan and West Valley City employ a growing number of employees in our congressional district, and in our state.

Beyond the pride we feel for being a center of innovation, the jobs created by companies like these are important for families and communities across Utah.  Making certain that we foster an environment where businesses can grow and thrive - and continue to hire Utah employees - is a top priority for me in Congress.  For this reason, I have long opposed legislation called the Medical Device Tax, a component of the Affordable Care Act (Obamacare) legislation, and have called for its repeal.

Of specific concern to me is that the Medical Device Tax, which took effect on January 1, 2013, could have a chilling effect on the life science industry in Utah - where we have one of the highest concentrations of these jobs, which includes medical devices, in the country.  According to the , the medical device tax could cost the industry nearly $30 billion over the next few years and could affect the operating budgets of U.S. device companies, including those in our state.  I am concerned that increasing costs for this industry could drive the companies and the jobs they create off shore.

I would prefer that these revenues remain with innovators like the companies in Utah�s Fourth District where it can be spent on our common priorities including: research and development of new technologies, expanding domestic facilities, and retaining jobs and job growth.  It is also worth noting that the average wage in the life science industry is higher than that in other private sector jobs, which is certainly the case in Utah.

With an already inefficient and costly regulatory environment, a new burden like the Medical Device Tax will only further diminish the global competitiveness of the U.S. medical device industry - where we currently enjoy a position as the world's leader in innovation.  I have concerns that this could result in job loss, and a reduction of domestic investment by device manufacturers.  In a recovering economy, this is a recipe for disaster. 

I am constantly looking for issues that matter to Utah families like yours that I am honored to represent.  If there are topics, like supporting innovation, growing jobs, or repealing burdensome regulations, which matter to you, please let me know.  I value your ideas and I look forward to hearing from you.
 

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