Medical Device Taxes

A Tax on Medical Device Manufacturers

The tax, a 2.3 percent levy on sales of medical devices starting in 2013, would help fund the expansion of the new health care program. This is a tax on gross sales, not profits. A company might not be profitable and still have to pay the tax. It sometimes takes new companies years before they are profitable. This could be a deterrent to starting a new business. It could also curb hiring. Since employees are a variable cost, medical device companies might limit their payroll in order to be profitable.