Preparing for the Device Tax

Device manufacturers across the country aren't happy about the $20 billion tax that industry will be faced with in 2013. In Indiana, they're keeping in eye on budgets and spending in preparation for the financial hit. Kem Hawkins, president of Cook Medical (Bloomington), anticipates that the law will cost the company between $15 and $20 million every year. At Zimmer (Warsaw), the company expects the tax will cost the company $50 million each year, based on 2009 revenues. Its neighbor Biomet is also analyzing spending. However, companies that the IndyStar spoke with don't plan on cutting jobs as the future tax looms ahead. The orthopedics sector accounts for nearly 20% of private sector jobs in Kosciusko County (home to orthopedic capital Warsaw). Companies in Indiana employ more than 19,900 workers and pay $1.1 billion in wages each year. The average pay of a medtech worker in the state is $60,739. 

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