After two-year pause, USA medical device tax back in effect
As per the latest report published by a leading media web portal, On Monday, around 2.3 % tax on the sale of medical devices went back into the effect after a two-year suspension. Despite, opposition led by the United States of America lawmakers as well as the medical manufacturing industries.
According to the report the excise tax on pacemakers, catheters and other well-known healthcare products was among several fees and also taxes issued since January 2013. It helps to fund the Affordable Care Act which also called as Obamacare that was projected to raise around $30 billion more than a decade.
After drawing very harsh criticism from both political parties as well as lobbying groups of medical industry, the congress of the United States of America approved a suspension of the levy in the year 2015.
The suspension expired on the day of New Year just after unsuccessful previous-ditch efforts by Republicans of the America.
American medical device tax back in effect after a long pause
It is also said that the United States republicans would have automatically killed the tax, only if they had succeeded in recovering Obamacare last year. While, the levy would remained in the Republican crafted tax legislation that signed by the United State president Donald Trump on 22nd December 2017.
Supporters of the tax said that it has helped millions of previously uninsured Americans to provide health insurance.
It is also reported that critics who have looking to keep fighting the levy, told that it has strongly affected the slashed jobs and medical industry too.
The Advanced Medical Technology Association lobbying group stated on its official website that “the tax has had a vital negative impact on the medical innovation and also has resulted in the loss or lower availability of jobs.”