The chairman of Bloomington-based Cook Group Inc. says the fight to repeal a federal medical device tax will continue. The 2.3 percent tax went into effect earlier this year as part of the Affordable Care Act and was not included in the package that ended the partial government shutdown. Steve Ferguson says the tax will continue to force the industry to look overseas for growth opportunities. He says the medical device sector is among the most “competitive” and the “most value-added” in the country.
Ferguson tells Inside INdiana Business Cook's plans to build five new facilities within the U.S. will remain on hold as long as the tax is in place.
He is encouraged by the bi-partisan show of support the repeal discussion has demonstrated, but emphasizes that “it's an educational process” to get members of Congress and President Barack Obama to understand the impact the law has on the industry.
The federal government believes the tax could generate about $30 billion over 10 years.
Source: Inside INdiana Business