A press release from Rep. Elise Stefanik says the first-year Republican congresswoman from Willsboro has led a group of freshmen in the house in asking for repeal of a tax on medical device revenues.

Stefanik, Freshman Representative to the Policy Committee, led a bipartisan group of freshmen lawmakers in sending a letter to Speaker John Boehner urging him to bring H.R. 160, the Protect Medical Innovation Act, up for a vote in the House.

The lawmakers wrote to say they want the House to act “to protect the medical device industry prior to any action by the United States Supreme Court this spring. This legislation enjoys broad bipartisan support as members of both parties recognize the impact this has on our constituents, both in access to the healthcare devices they need, and in hundreds of thousands employed by the industry.

“The medical device industry directly employs 400,000 Americans. The industry is primarily comprised of small businesses and American companies represent 38% of the global market. Of the 6,500 medical device manufacturers in the United States, 80% employ fewer than 50 employees.

“The 2.3% tax on revenue, rather than income, means that the U.S. device industry is subject to one of the highest corporate tax rates in the world. And many smaller early-stage companies must pay the tax even though they are years away from becoming profitable. As companies look to make cuts to offset the tax, one of the first items to go is research and development. This undermines the future of the industry, and puts the discovery of new breakthrough medical technologies at risk.”

Bolstering their case, the first-time members said the tax money lost to the government is tiny compared to the whole budget.

“Additionally, the tax revenue generated from medical devices is approximately $2 billion annually. Relative to the federal budget, this represents roughly one half of one tenth of one percent of government spending. Repealing the tax will not have a meaningful impact on the budget, but will be significant for these small businesses and their ability to continue to grow.”

As the leader of this group, Stefanik’s signature is first on the letter to Boehner.

Bernie Becker of the Capitol-watching newspaper The Hill says Democrats in the Senate are considering such legislation to try to save Pres. Obama's Affordable Care Act, one strong criticism of which is over the tax. “Republicans, meanwhile, want to just get rid of the tax, as part of their efforts to unravel ObamaCare,” Becker wrote. (http://thehill.com/policy/finance/236766-markey-seeks-repeal-of-medical-device-tax)