Advocacy - Tax and Fiscal

Bipartisan California Delegation Letter to House Leadership in Support of Medical Device Tax Repeal – December 2018

December 12, 2018

The Honorable Kevin McCarthy
House Majority Leader
U.S. Capitol
Washington, DC 20515
The Honorable Nancy Pelosi
House Minority Leader
U.S. Capitol
Washington, DC 20515

Dear Leader McCarthy and Leader Pelosi,

We write to urge you to strongly consider the inclusion of a full repeal of the medical device tax in legislative vehicles being considered by the U.S. House of Representatives before the end of the year.  Repeal of the medical device tax is critical to the health and sustainability of this vital American manufacturing industry.  This looming tax increase will impact California based medtech innovation and job creation, threatening this industry and the constituents we serve.

The medical device industry, which includes hundreds of small businesses, needs certainty to continue its research and investment in critical life-saving innovations.  The industry is primarily comprised of small businesses – in fact, approximately 80% of medical device innovators employ fewer than 50 employees.  California is home to 1,848 medical device firms employing over 81,089 people – more firms and employees than any other state in the nation and representing 19.06% of the nation’s med tech workforce – making the impact of the tax on our state particularly troublesome.