Take Action! Last Chance to Repeal Medical Device Tax

As of January 1 of this year, medical device companies are now charged an additional 2.3 percent top-line tax on medical device sales to help pay for changes in the Affordable Care Act. This tax jeopardizes North Carolina jobs, the health of patients throughout the nation and the innovative medical device manufacturing industry.

While the tax will cripple mature companies, it is likely to kill start-up businesses because it must be paid regardless of a company’s profits. The tax lengthens the time companies require to pay back risk capital to their shareholders and, as a result, makes it much harder for companies to raise money from venture funds and other private equity sources.

With the government shutdown and debt ceiling debates ongoing, there is a last-chance opportunity to deliver meaningful relief from this onerous tax. The North Carolina Chamber continues to strongly advocate for the repeal of this tax, and I ask that you reach out to Sen. Kay Hagan’s office to urge her consideration to repealing the medical device tax as soon as possible.

Take Action: Click here to email Sen. Kay Hagan’s office now! Below is a suggested email.

Email to Sen. Hagan’s Office:
As a member of the North Carolina business community, I want to thank Sen. Hagan for her attention to the onerous medical device tax, which is a serious threat to medical device companies in North Carolina, a vital sector of our state’s economy.

As you are fully aware, this unusual top-line tax, implemented on January 1, as part of the Affordable Care Act, jeopardizes jobs, the health of patients throughout the nation and the innovative medical device manufacturing industry. While the tax will cripple mature companies, it is likely to kill start-up businesses because it must be paid regardless of a company’s profits. This tax will cripple the bottom line of North Carolina companies, and many will not be able to survive the onslaught of taxation.

With the government shutdown and debt ceiling debates ongoing, there is a last-chance opportunity to deliver meaningful relief from this onerous tax. I urge that Sen. Hagan give every consideration to repealing the medical device tax as soon as possible.

Thank you for your consideration.

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