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| Date: | October 18, 2012 | | Contact Name: | Neil Pursley | | Contact Phone: | 651-296-4915 | | For Immediate Release | |
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| Senator Benson calls on Governor to Aid Minnesota’s Medical Device Industry “The Medical Device Tax is a job killer for Minnesota,” said Senator Benson |
(ST. PAUL) – State Senator Michelle Benson (R-Ham Lake) is calling for stronger resolve on the part of Minnesota’s Governor and United States Senators Klobuchar and Franken, in defending the medical device industry which is a significant job provider in the state.
Yesterday, Governor Dayton met with researchers and leaders in the Medical Device Industry in Chaska as part of his “Working for Minnesota Jobs” initiative. This industry employs 35,000 Minnesotans and is currently under threat from a looming excise tax that goes into effect January 1, 2013.
As part of the federal healthcare legislation passed under the Affordable Care Act, there is a 2.3% excise charge applied to revenue for Medical Device Companies. This tax is strictly on revenue and companies that are not yet profitable will see an enormous tax burden. Many of those companies are right here in Minnesota.
In June, all eight members of the Minnesota Congressional Delegation voted to repeal the Medical Device Tax, but U.S. Senate Majority Leader Harry Reid has not allowed the bill to come before the Senate for a vote.
Senator Benson said, “I appreciate Governor Dayton highlighting this vibrant medical industry in Minnesota and ask him to take the next step by urging his former colleague, U.S. Senate Majority Leader Harry Reid, to allow the bill to repeal the Medical Device Tax to have an up or down vote in U.S. Senate. I also strongly encourage our U.S. Senators Klobuchar and Franken to fight for jobs here in Minnesota by becoming co-sponsors of the Medical Device Tax repeal.
To point out just how devastating this tax will be I think the people should know that several companies including Cook, Welch Allyn, Stryker, St. Jude’s, Zimmer, Hill Rom, and Boston Scientific have announced plans to curtail U.S. expansion, shift production abroad, or lay off U.S. workers because of the coming impact of the tax.”
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Background on MN Medical Device Industry:
• In Minnesota alone, there are 400 medical device companies employing 35,000 people. The tax will cut 10% of that workforce.
• In a 20 year period, the med tech industry was responsible for a 4% increase in US life expectancy, a 16% decrease in mortality rates and an astounding 25% decline in elderly disability rates.
• Medical devices helped to slash the death rate from heart disease by a stunning 50% and cut the death rate from stroke by 30%.
• In 2006, it shipped over $123 billion in goods, paid $21.5 billion in salaries to 400,000 American workers and was responsible for a total of two million American jobs. And here’s a key point- More than 80% of medical device companies are small businesses employing 50 people or less.
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