Diana Furchtgott-Roth told the Energy and Commerce Committee today that the device tax will stifle innovation and push production overseas, to the tune of 146,000 jobs.
The Washington Examiner reports on Furchtgott-Roth's testimony, saying "the tiny provision in Obamacare that puts a 2.3 percent tax on 'medical devices' such as heart valves, insulin pumps and dental fillings will stifle development of the devices and push production overseas since no other country taxes the items."
I'm not sure if Furchgott-Roth said that "no other country taxes the items," or if that is a misread by the Washington Examiner reporter. Those of us who've been following the device tax know that it has nothing to do with where the device is manufactured—it has to do with where the devices are sold. However more than one expert has said that to alleviate the cost burden of the tax, medical device companies will look overseas for cost-effective means of production.
The question is, how many jobs would it cost?
Furchtgott-Roth predicted a 10% shift in production overseas that would cost up to 64,000 jobs and a 30% shift would cost up to 146,000 jobs.
If those numbers are correct, we have a bigger story to tell for repeal efforts.
--Heather Thompson is editor-in-chief of MD+DI.