House backs repeal of medical device tax

The House of Representatives easily passed a bill repealing the medical device tax that was part of the Affordable Care Act. The vote was 280-140, one vote short of a veto proof majority. That is significant given the fact that the White House has already threatened a veto.

The nonpartisan Congressional Research Service concluded in January the tax will have “fairly minor effects” on the industry, including on jobs. That’s because the tax rate is small, about half the medical devices produced are not subject to the tax, and health services aren’t as affected by prices as are other goods.

The report also said most of the tax burden will fall on customers buying the products, rather than reducing companies’ profits.

It is not clear whether there is a veto proof majority in the Senate.

[USA Today]