Business

Markey seeks repeal of medical device tax

Sen. Edward Markey (D-Mass.) rolled out legislation Tuesday to eliminate ObamaCare’s medical device tax, and replace the lost revenue by raising taxes on oil-and-gas companies.

{mosads}The medical device industry has been pushing hard to repeal the 2.3 percent excise tax on devices. That idea has bipartisan support, from practically every Republican to Democrats like Markey whose home states have large medical device industries.

“Medical device companies in Massachusetts and across the country are at the forefront of a biomedical revolution that is supporting economic growth and developing life-saving technologies,” Markey said in a statement. 

“It’s time to end 19th century tax breaks for highly-profitable oil and gas companies that need no assistance and invest in 21st century innovation and companies that create jobs and save lives.”

Still, supporters have plenty of obstacles to hurdle before the medical device tax is repealed. Democrats who have sounded open to the idea, like Markey, want to replace the revenue to ensure that President Obama’s signature healthcare law remains fully funded. 

Other top Democrats, like Senate Minority Leader Harry Reid (D-Nev.), have shown no interest in repealing the tax, saying that the device industry will get plenty of help due to the increase in insured people because of ObamaCare.

Republicans, meanwhile, want to just get rid of the tax, as part of their efforts to unravel ObamaCare.