Late last week, the U.S. House voted yet again to repeal a 2.3 percent tax on medical devices, which was part of the 2010 Affordable Care Act. Effective lobbying by medical device manufacturers has repeatedly put this legislation on the GOP Congressional agenda, even though those manufacturers profited from other provisions in the health care reform law.
Representative Dave Loebsack (IA-02) was among the 46 House Democrats who joined all the Republicans present to pass the “Protect Medical Innovation Act” by 280 votes to 140 (roll call). Loebsack voted for a similar bill in 2012 but not for repealing the same tax in September 2013, when Republicans were trying to defund Obamacare as a condition for approving further federal government spending. In recent years, Loebsack has voted against most of the several dozen House bills to repeal all or part of health care reform, with a few notable exceptions.
Representatives Rod Blum (IA-01) and David Young (IA-03) supported the latest medical device tax repeal bill. Fellow Republican Steve King (IA-04) missed the June 18 vote, but we know where he stands. He has supported any and all efforts to scrap Obamacare, including rescinding this very tax in 2012 and 2013.
Next time the Iowans in the U.S. House claim to care about the deficit, remember that this bill would reduce federal revenues by nearly $25 billion over ten years without any spending cuts to offset the lost revenue.
The White House has warned that President Barack Obama would veto this bill, since it grants “a large tax break to profitable corporations” that are gaining new customers, thanks to health care reform. Bleeding Heartland user Jon Muller explained the economics here and exposed the “pure rent-seeking behavior” of an industry that “wants the fruits of ACA, but does not wish to put anything back on the table to make it happen.”
Another must-read on this issue is Matt Gardner’s post for the Tax Justice blog from earlier this year: “Big Medical Device Makers Decry Device Tax While Dodging Billions by Offshoring Profits.” I’ve enclosed excerpts below but encourage you to click through to read Gardner’s whole piece.
UPDATE: Added below David Young’s press release about this vote.
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