KATKO: TWO YEAR PAUSE ON MEDICAL DEVICE TAX GOOD FOR CENTRAL NEW YORK

Washington, D.C. - With the support of U.S. Representative John Katko (NY-24), the U.S. House of Representatives today passed the Protecting Americans from Tax Hikes (PATH) Act, bipartisan, bicameral legislation which places a two-year moratorium on the 2.3% tax on medical device manufacturers that was put in place to fund Obamacare.

"Under the onerous Medical Device Tax, innovators, small businesses, and manufacturers right here in Central New York and across the country have slowed hiring, slowed investment in research and development, and slowed expansion - all in order to compensate for this misguided tax policy," said U.S. Rep. John Katko. "Repealing this tax is critical to allowing our regional businesses to invest, to grow, and to prosper. Today's bipartisan legislation places a two year pause on this significant tax burden, which is a critical first step forward in eliminating this harmful tax altogether."

The Medical Device Tax places a unique threat on Central New York's economy and on New York State as a whole. New York's vibrant med-tech industry is the 8th largest in the nation, employing over 8,000 employees in Upstate New York. The 24th Congressional District is home to small business innovators and large medical device manufacturers, including Welch Allyn and MedTech Association. Since taking office, Representative Katko has been a staunch advocate for the repeal of the Medical Device Tax, serving as an original co-sponsor on legislation to repeal the tax.

Hill-Rom President & CEO John J. Greisch said, "Hill-Rom and Welch Allyn are established industry leaders in medtech innovation - we are constantly searching for new ways to help improve the quality of care for patients and their caregivers. Our work to develop new technologies depends on our ability to take calculated risks and make strategic investments, efforts challenged by this medical device excise tax, which stifles innovation and reduces our ability to invest in R&D. Hill-Rom and Welch Allyn are grateful that Congress passed a two year reprieve. On behalf of the patients we serve, thank you to Congressman Katko, Senator Schumer and Senator Gillibrand for taking the lead and ensuring this tax is no longer an impediment to developing important new medical technologies. We look forward to continue working together to permanently repeal this onerous tax."

"On behalf of nearly 350 medical technology companies across New York State, their employees and the patients they serve, MedTech applauds members of the New York congressional delegation for their unwavering support to repeal this onerous tax," said Jessica Crawford, MedTech Association president. "Suspension is an important step toward full repeal of the medical device tax and preserving more than 13,000 jobs and $4.6 billion in economic impact across New York. The efforts of our delegation will help boost innovation, job creation and patient care."

In addition to the two-year moratorium on the Medical Device Tax, today's bipartisan tax measure includes provisions to:

* Provide Central New York families with the certainty that they need to plan by extending tax relief policies and making permanent the enhanced child tax credit, and important enhancements to the American Opportunity Tax credit, and the Earned Income Tax Credit.

* For the first time in thirty-four years, make the Research & Development tax credit permanent, offering incentives for innovation by small businesses.

* Prevent tax increases for small businesses, and extending tax credits to promote small business growth, innovation, and investment.

* Place a two year pause on the "Cadillac tax," on expensive health insurance plans.

* Provides a two year extension for alternative fuel tax credits heavily utilized by Centro.

Representative Katko concluded, "For far too long, Congress has waited until the last minute - arbitrarily making changes or adding temporary extensions. Central New York families and businesses, and farms need predictable, certain policies that they can depend on. This legislation does that, and lays the groundwork for comprehensive tax reform in Congress."

Congressman John Katko represents the 24th Congressional District, which includes all of Onondaga, Cayuga, and Wayne Counties and the western portion of Oswego County. For more information, please visit https://katko.house.gov or www.facebook.com/RepJohnKatko.

Read this original document at: https://katko.house.gov/media-center/press-releases/katko-two-year-pause-medical-device-tax-good-central-new-york