Obamacare’s Medical Device Tax On the Chopping Block Again



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Obamacare’s medical device tax is back on the chopping block, and the push to repeal it has bipartisan support. Gee, did the Democrats who passed this thing really believe Nancy Pelosi when she said they had to pass it to find out what was in it?

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A bipartisan group of 180 House members — consisting of about 40 percent of the House — has reintroduced a bill to end the 2.3 percent tax on medical devices that was imposed under President Obama’s healthcare law.

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That tax took effect at the start of 2013, and is expected to raise a few billion dollars a year in tax receipts for the government, and $30 billion over 10 years. But opponents of the tax say it will hinder innovation and job creation in the medical device industry….

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[Rep. Erik] Paulsen introduced a similar bill in the last Congress. The latest version would repeal the tax without offsetting spending cuts.

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Last year, the House Ways & Means Committee amended his bill to provide for an offset, something that could happen again in the new Congress. Ways & Means attached language that would pay for ending the tax by requiring the government to recapture all overpayments of health insurance subsidies provided in the healthcare law. Under current law, only some of these overpayments must be returned to the government.

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Overpayments of the subsidies are anticipated because the subsidies are based on prior years’ income, and if it is discovered later that a family’s income increases, some repayment would be required.

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This offset led to a veto threat from President Obama, who argued that requiring all overpayments to be returned would be a tax on middle-class families. Republicans rejected the argument that recapturing subsidy overpayments is a tax, and said Democrats have also proposed this kind of offset before. (Read More)

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Of course they should be collecting overpayments. Can you imagine a private company overpaying something by the billions and not recouping it? It would go out of business. What a mess.

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A similar bipartisan bill is going to be introduced in the Senate.

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