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CLSA Letter to Reps. Erik Paulsen & Ron Kind in Support of Bill to Permanently Repeal the Medical Device Excise Tax (H.R. 184) – February 2017

January 3, 2017

The Honorable Erik Paulsen
127 Cannon House Office Building
Washington, DC 20515
The Honorable Ron Kind
1502 Longworth House Office Building
Washington, DC 20515

Dear Representatives Paulsen and Kind,

On behalf of California Life Sciences Association (CLSA) – the premier statewide public policy and business leadership organization representing California’s leading life science innovators, including medical device, diagnostic, biotechnology and pharmaceutical companies, research universities and private, non‐profit institutes, and venture capital firms – thank you for your leadership of H.R. 184, the Protect Medical Innovation Act, legislation to permanently repeal the medical device excise tax.

At a time when we should be doing everything we can to encourage investment, innovation and job creation, the medical device excise tax instead discourages and threatens important research and development. During the three years in which the medical device tax was in effect, medical technology sector jobs in California and across the country were put at risk. For most companies, the device tax contributed to payroll reductions and slashes in R&D investments – anything but foster job creation.

Given the size and scope of the medical technology sector’s presence in California, the 2.3 percent, $25 billion tax has had a disproportionate impact on our state. Vibrant medical technology clusters exist in and around San Diego, San Francisco/Silicon Valley, Orange County and Sacramento, as well as the Los Angeles, Ventura/Santa Barbara, and Riverside/San Bernardino regions. California is home to more than 1,700 medical technology companies — more than any other state in the nation — and the approximately 75,000 medical device jobs in California represent roughly 18.6 percent of the total U.S. medical technology workforce.