7 Reasons for Medtech to Be Thankful This Year
1. Tax ReformTax reform is likely to be on the minds of many U.S. executives as they head into the Thanksgiving holiday. While the outcome remains uncertain, lawmakers are considering certain cuts and incentives that could ultimately benefit the medical device industry. One way tax reform could potentially benefit some medtech companies is through a repatriation tax holiday that would give companies with cash held abroad a way to bring those funds back to the United States at a tax rate well below the corporate tax rate. A lot of medtech companies could potentially benefit from such a holiday.Some lawmakers have also proposed incentives that would encourage investment in startup medtech companies, which is something that AdvaMed Accel's Executive Direct Ashley Wittorf has expressed support for. "As Congress continues work on broad tax reform, inclusion of a federal innovation investor credit would promote the administration’s goals of boosting economic growth and job creation, while helping ensure the U.S. maintains its position as the world leader in medical advancement," Wittorf said.Finally, lawmakers are considering a permanent corporate tax rate reduction from 35% to 20%, which would be a clear benefit to all businesses in the industry.
It's easy to get caught up in the doom and gloom, but in the spirit of the U.S. Thanksgiving holiday, this week we recognize the trends and events that the industry can be thankful for.