It’s health subsidies vs. tax on med technology [Star Tribune, Minneapolis]
By Kevin Diaz, Star Tribune, Minneapolis | |
McClatchy-Tribune Information Services |
The plan could be a breakthrough for the two-term congressman, who has defined himself as a champion for the state's medical technology sector. But it could also open a new front in the ongoing battle over the federal health care law, which is now under review by the
The
Republican leaders plan to introduce the downsized subsidy measure before the House votes on Paulsen's bill later this week,
The new
A report on the
Some Democrats argue that removing the cap would penalize people who suddenly find work, win promotions, suffer deaths in the family, get divorced or unexpectedly encounter other life-changing circumstances.
Republicans argue that the measure does nothing more than make sure people don't get benefits to which they're not entitled.
Staffers for the
'Not a tax increase'
With 239 co-sponsors, including about a dozen Democrats, Paulsen's bill is expected to easily clear the House by Wednesday or Thursday. Looking forward, the new revenue offset is designed to pick up support in the
But it remains to be seen how the new
Klobuchar spokesman
Some Democrats in the
While liberal advocacy groups have opposed cuts to the tax credit program, some fiscal conservatives have given it their blessing. Americans for Tax Reform President
'American success story'
Paulsen's bill would cancel a 2.3 percent excise tax on medical devices scheduled to take effect in January. The tax is intended to help pay for the expansion of health care coverage under the Affordable Care Act, which Republicans call "ObamaCare."
Shepherding the bill through the
Unlike past
Industry allies who have backed Paulsen's bill in a well-funded lobbying campaign say the tax will not only stymie innovation but drive companies and jobs overseas. Administration allies say those fears are being exaggerated by an industry that stands to make substantial gains from the expansion of health coverage to millions of newly insure customers.
Backers of the health care law note that devices imported from abroad would also be subject to the tax, while U.S. devices made for export would not be.
While siding with industry leaders like
Without an offsetting revenue measure, Democrats charge that the device tax repeal would simply add to future budget deficits, something they say the health care law was painstakingly crafted to avoid. Franken has conditioned his support for repeal on a "responsible and fiscally sound" budget offset. Klobuchar has not said if she would require an offset.
Klobuchar and Franken worked with Paulsen to halve the size of the excise tax when it was first proposed by Democratic leaders during congressional debate over the health care law. Now, along with Franken, both lawmakers could again be caught in the shifting crossfire of a political debate that pits an important home-state industry against the signal achievement of the Obama presidency.
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