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Recent Action on Medical Device Tax
Wednesday, May 28, 2014

The medical device tax is back in the news, after recent congressional efforts to delay or repeal the tax.  The most recent efforts arose in the context of the “tax extenders” bill, which extends until the end of 2015 more than 50 tax provisions that are due to expire at the end of 2014.

In the run up to Senate consideration of the tax extenders bill, Senators Joe Donnelly (D-IN) and Bob Casey (D-PA) proposed a two-year device tax delay during a recent meeting of the Medical Device Manufacturers Association.  The Senators proposed adding an amendment to the tax extenders bill that would implement this delay.

However, it appears that Senate consideration of the extenders bill is on hold, at least temporarily.  The measure failed to gain the required 60 votes to advance for debate in the Senate. Senate Republicans reportedly defeated the extenders bill when they were prevented from offering amendments, including repeal of the medical device tax.

The future of the tax extenders package remains uncertain.  Senate Majority Leader Harry Reid has pledged to not allow any amendment to the bill that would repeal or delay the medical device tax. Such an amendment is expected to garner bipartisan support.

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