Senate Vote Takes Aim at Device Tax
In a largely symbolic gesture, the U.S. Senate has voted 79 to 20 in favor of an amendment to the Fiscal 2014 Senate Budget Resolution expressing support for the repeal of the medical device tax. Thirty-three Democrats joined all 46 Senate Republicans to support the amendment that repeals the tax, part of President Barack Obama's healthcare law.
Although the vote is nonbinding, it does seem to indicate that there is broad support for repealing the tax. Opponents of the levy were jubilant following the vote and appear hopeful about its repeal. “The importance of this vote cannot be overstated,” said Sen. Orrin Hatch, R-UT, ranking member of the Senate Finance Committee, in statement. “For the first time, Democrats and Republicans have come together in recognizing how bad this tax is.”
Sen. Amy Klobuchar, D-MN, who introduced the amendment with Hatch, also praised the vote. She, along with Sen. Al Franken, D-MN, have been vocal in their opposition to the tax, which they say harms Minnesota's device industry. Minnesota is home to device giants Medtronic, St. Jude Medical, and others.
The Medical Imaging & Technology Alliance (MITA), Advanced Medical Technology Association, and Medical Device Manufacturers Association praised the Senate's actions in a joint statement. “Momentum is clearly growing in Congress to repeal the medical device tax as Senators continue to hear from their constituents that the impact is real—the tax is slowing economic growth and costing thousands of jobs,” said Gail Rodriguez, executive director of MITA.
Despite the show of bipartisan unity, the White House seemed unmoved. Brad Carroll, a White House spokesman, dubbed the resolution as “purely a symbolic vote” with “no bearing on the future of the Affordable Care Act and its implementation,” according to The Associated Press. Indeed, the fight to repeal the tax still has a long journey, particularly since the House and Senate must now reconcile competing budget plans.
Another potential hurdle is opposition from top Senate Democrats. Sens. Max Baucus, D-MT, who is chairman of the Senate Finance Committee, and Majority Leader Harry Reid, D-NV, both voted against the amendment.
Posted: March 26, 2013