An ObamaCare tax on medical devices is already destroying jobs, and could put tens of thousands more at risk at a time when more than 20 million Americans are struggling to find full-time work.  Tomorrow, the House Ways & Means Committee will consider the Protect Medical Innovation Act (H.R. 436), introduced by Rep. Erik Paulsen (R-MN), that will save jobs and support medical innovation by stopping the harmful medical device tax. 

Several recent news reports and statements from job creators highlight the serious threat posed by the ObamaCare tax, and underscore the need to pass H.R. 436:  

  • “Could Cost Ohio Jobs and Hinder Innovation.” “A new medical device tax to take hold next year could cost Ohio jobs and hinder innovation, say industry leaders within the state who are calling for its repeal. … The tax… would eliminate as many as 43,000 jobs, including some possibly in Ohio where more than 35,300 workers are employed within the medical technology industry, said officials…” (Dayton Business Journal, 5/15/12)
  • “Studies Have Shown the Tax Will Cost Jobs.” “Studies have shown the tax will cost jobs…at a time when the American economy is struggling and U.S. medical technology leadership in the world market is threatened by competitor nations who have grown their industries through more favorable tax and regulatory policies.” (Stephen J. Ubl, President & CEO of the Advanced Medical Technology Association, 2/3/12)
  • “It Is a Tax on Innovation That Is Already Eliminating Jobs.” “It is a tax on innovation that is already eliminating jobs in this vibrant industry, and will thwart efforts to improve patient care when we can least afford it.” (Mark Leahey, President and CEO of the Medical Device Manufacturers Association, 2/3/12)
  • “The Tax Could Ultimately Cost More than 45,000 Jobs.” “Earlier last year, Covidien Plc (COV), maker of surgical instruments, said it would lay off 200 workers in the U.S. and move production to Costa Rica and Mexico. It, too, cited the tax. … A study done for AdvaMed, a trade association for the industry, claims the tax could ultimately cost more than 45,000 jobs.” (Bloomberg, 1/2/12)
  • “Real Impact Is Inhibiting Job Creation and Innovation.” “While the goal was to help pay for the legislation, its real impact is inhibiting job creation and innovation. Perhaps worst of all, the tax is applied to the sales, not profits, of a medical device manufacturer. While still growing and creating jobs, more than a few Ohio medical device companies are not yet profitable. Under this tax, they would actually owe a hefty tax bill, despite not having a penny in profits.” (Tony Dennis, President & CEO of BioOhio, Cleveland Plain Dealer, 11/19/11)
  • “About 112 Local Workers Would Lose Their Jobs” and “About 1,002 of [Stryker Corporation’s] Worldwide Workforce Would Be Cut.” “The company [Stryker Corporation] said that it will look to cut its 20,036-person worldwide staff before the end of 2012 and restructure some of its operations in order to wring out about $100 million in pre-tax operating costs savings. It said it expects the Medical Device Excise Tax…to cost it about $150 million.  If Stryker does an across-the-board cut of its 2,250-person Kalamazoo-area workforce, about 112 local workers would lose their jobs. About 1,002 of its worldwide workforce would be cut.” (Kalamazoo Gazette, 11/15/11)
  • “Will Undoubtedly Force Us to Cut Critical R&D Funding and Inhibit Job Creation and Retention.” “This harmful new tax is expected to collectively increase federal taxes on medical device companies by $20 billion through 2019, and will cost Boston Scientific alone more than $100M a year in additional taxes.  Such a severe increase in tax liability will undoubtedly force us to cut critical R&D funding and inhibit job creation and retention.” (Denis Johnson , Vice President of Operations, Boston Scientific, 6/7/11)
  • “Companies Are Already Moving Jobs…They’re Not Investing in the U.S.” “The pessimistic forecast is echoed by Kem Hawkins, president of Cook Medical, a family-owned firm in Bloomington, Ind., that employs 10,000 workers, most of them in the United States. ‘Companies are already moving jobs, they’re already moving products, they’re not investing in the U.S.,’ he told The DC. ‘If we don’t stop it now … it will be too late’ to preserve the United States’ leading role, he said.” (The Daily Caller, 11/16/11)
  • “Strategies for Dealing with the Additional Expense Include Cutting Jobs.” “Strategies for dealing with the additional expense include cutting jobs and cutting back on research and innovation, they say. … ‘In an economy where the government is attempting to promote well- paying jobs in innovative industries, the tax threatens those very jobs in an industry where America still enjoys global leadership and a positive balance of trade,’ said [Bill] Kolter [of Biomet, Inc.]…” (The Journal-Gazette, 12/18/11)

The Protect Medical Innovation Act enjoys bipartisan support in the House, with one Democratic cosponsor citing “concerns about potential job loss” as his reason for backing this critical legislation.

The full House is expected to vote on H.R. 436 as early as next week – the 30th vote House Republicans will take to repeal, defund and dismantle ObamaCare.  As House Speaker John Boehner has made clear, “our plan remains to repeal the law in its entirety,” and “anything short of that is unacceptable.”  That was the commitment House Republicans made in the Pledge to America, and that remains our goal.  Learn more about the pledge at, and read about other steps the Republican-led House is taking under the Plan for America’s Job Creators to create a better environment for private-sector growth and job creation at