Senate Republicans Push to Repeal the Medical Devices Excise Tax

Senate Republicans Push to Repeal the Medical Devices Excise Tax

At a September 24, 2013 meeting, Senate Republicans discussed pushing a repeal of the Medical Devices Excise Tax. Codified at IRC Section 4191, and enacted in 2010 as part of the Patient Protection and Affordable Care Act, the 2.3 percent excise tax is potentially on the chopping block as part of the current fiscal debates in Congress over a government funding bill and the need to extend or increase the debt limit.  See “Medical Devices Tax Could Be On the Chopping Block in Fiscal Debates,” 2013 TNT 186-5, Tax Notes Today (Tax Analysts September 25, 2013).
 
In March, the Senate passed a nonbinding budget amendment calling for repeal of the medical device tax. The amendment, which included language specifying that legislation to repeal the tax should be deficit neutral, received support from 79 senators.  A prior commentary discussing the Medical Device Excise Tax was included in the Tax Law Newsroom in May 2013.  See “Offset Elixir: Elusive Antidote for Medical Device Excise Tax Pain, LexisNexis® Legal Newsroom Tax Law (May 15, 2013).”

See Deanne B. Morton on The Medial Device Excise Tax: Is Repeal the Right Therapy?, 2013-September Lexis® Federal Tax Journal Quarterly § 7.01 for a comprehensive discussion of Medical Device Excise Tax issues, including:

  • to whom the tax applies;
  • how the tax is assessed;
  • what kinds of exemptions may be available;
  • applicable forms and process for payment;
  • potential penalties for noncompliance; and
  • the controversy resulting from the tax and the possibility of repeal.

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