This is an important day for employees and businesses across Indiana and our nation. The Committee on Ways and Means in the U.S. House of Representatives, with support from both parties, passed legislation 23-11 to repeal a medical device tax.
The excise tax, which is scheduled to go into effect in January, would harm innovative small-to-midsize medical device companies. It would lead major multinational companies to relocate existing plants and jobs and build new plants in low-tax nations.
The legislation is scheduled to go the House floor next week, where it is expected to pass. The Senate has not yet taken action on the repeal legislation.
“Today’s action is important to every medical device company as well as suppliers who offer a multitude of services to companies, whether they mow the lawn, sell cars, provide parts, IT services, create components or otherwise offer commercial support,” said Steve Ferguson, chairman of the board of Cook Group, parent of Cook Medical.
Cook Medical, based in Bloomington, Ind, is the nation’s largest privately owned medical device company and has plants in Indiana, Illinois, North Carolina, California and Pennsylvania.
“This repeal is vital to patients and their caregivers who want their critical-care devices manufactured in the U.S.,” Ferguson said. “The threat of this imminent tax has already led companies to move existing manufacturing offshore and plan for future growth outside the U.S.”
Ferguson was hopeful that more Congress Members than the 239 who have supported the repeal will vote to shelve the tax. When legislative mistakes are made and policymakers learn more about an issue, the American people expect their leaders to change course based on that new information, Ferguson said.
“We want to thank Rep. Larry Bucshon (IN-8); Rep. Dan Burton (IN-5); Rep. Joe Donnelly (IN-2); Rep. Mike Pence (IN-6); Rep. Todd Rokita (IN-4); Rep. Marlin Stutzman (IN-3); and Rep. Todd Young (IN-9) for being co-sponsors of this important legislation.”
About Cook Medical
A global pioneer in medical breakthroughs, Cook Medical is committed to creating effective solutions that benefit millions of patients worldwide. Today, we combine medical devices, drugs, biologic grafts and cell therapies across more than 16,000 products serving more than 40 medical specialties. Founded in 1963 by a visionary who put patient needs and ethical business practices first, Cook is a family-owned company that has created more than 10,000 jobs worldwide. For more information, visit www.cookmedical.com. Follow Cook Medical on Twitter and LinkedIn. Help repeal the device tax by signing a cyber-petition at www.no3point3.com
Source: Cook Medical, INSideIndianaBusiness.com