updated: 6/1/2012 6:05:29 PM
The U.S. House of Representatives Committee on Ways and Means has approved legislation that would eliminate a medical device tax set to take effect in January. The tax is opposed by Indiana's medical device sector and the effort to have it repealed is scheduled to hit the full House floor next week. The Senate has not yet taken action on the legislation. In a recent interview on Inside INdiana Business Television, Bloomington-based Cook Group Inc. Chairman Steve Ferguson says the tax would "absolutely" drive company expansion overseas.
May 31, 2012
Bloomington, Ind. – This is an important week for employees and businesses across Indiana and our nation. The Committee on Ways and Means in the U.S. House of Representatives, with support from both parties, voted 23-11 to approve legislation, H.R. 436 “Protect Medical Innovation Act of 2011,” that would repeal a medical device tax.
The excise tax, which is scheduled to go into effect in January, would harm innovative small-to-midsize medical device companies. It would lead major multinational companies to relocate existing plants and jobs and to build new plants in low-tax nations.
The legislation is scheduled to go the House floor next week, where it is expected to pass. The Senate has not yet taken action on the repeal legislation.
“The committee vote is important to every medical device company, as well as suppliers who offer a multitude of services to companies, whether they mow the lawn, sell cars, provide parts, IT services, create components or otherwise offer commercial support,” said Steve Ferguson, chairman of the board of Cook Group, parent of Cook Medical.
Cook Medical, based in Bloomington, Ind, is the nation’s largest privately owned medical device company and has plants in Indiana, Illinois, North Carolina, California and Pennsylvania.
“This repeal is vital to patients and their caregivers who want their critical-care devices manufactured in the U.S.,” Ferguson said. “The threat of this imminent tax has already led companies to move existing manufacturing offshore and plan for future growth outside the U.S.”
Ferguson was hopeful that more Congress members than the 240 who have co-sponsored the repeal will vote to shelve the tax.
“When legislative mistakes are made and policymakers learn more about an issue, the American people expect their leaders to change course based on that new information,” Ferguson said. “We want to thank Rep. Larry Bucshon (IN-8); Rep. Dan Burton (IN-5); Rep. Joe Donnelly (IN-2); Rep. Mike Pence (IN-6); Rep. Todd Rokita (IN-4); Rep. Marlin Stutzman (IN-3); and Rep. Todd Young (IN-9) for being co-sponsors of this important legislation.”
About Cook Medical
A global pioneer in medical breakthroughs, Cook Medical is committed to creating effective solutions that benefit millions of patients worldwide. Today, we combine medical devices, drugs, biologic grafts and cell therapies across more than 16,000 products serving more than 40 medical specialties. Founded in 1963 by a visionary who put patient needs and ethical business practices first, Cook is a family-owned company that has created more than 10,000 jobs worldwide. For more information, visit www.cookmedical.com. Follow Cook Medical on Twitter and LinkedIn. Help repeal the device tax by signing a cyber-petition at www.no3point3.com
Source: Cook Medical