Salt Lake City, Utah- (News4Utah) – Some local businesses are standing united as they call on Congress to end the medical device tax once and for all.
The House passed the bill last month, now it’s sitting in the Senate.
Local businesses owners are teaming up with Representative Mia Love to turn up the heat.
From its headquarters in West Jordan, employees at Merit Medical pack up products and ship them across the globe.
Business is good, but they say the medical device tax is an undue burden.
“Twenty percent of this company’s net, after-tax profits was sent to Washington DC, rather than reinvested in technologies here, and growth of our business here,” said Greg Freede, Executive VP of Business Development.
The excise tax was created under the affordable care act to help cover the cost of implementation.
Under the Omnibus spending bill, the controversial tax is suspended for 2 1/2 years.
“For years, I’ve recognized that the medical device tax is unfair, burdensome and it has to go,” said Representative Mia Love, (R) Utah.
Love is co-sponsoring a bill to repeal it. It passed the House last month with votes from republicans and democrats.
Now, Love is standing side by side with Utah device makers to send a message to the Senate.
“It really is about looking no further than our neighbors, and the people that work here and those that are doing everything that they possibly can to make sure they are able to feed their family and grow and thrive,” she said.
Last year, the industry created more than 10,000 jobs and generated $5 billion to the state’s economy.
They say they would like to do more.
“Despite that suspension, it makes it very difficult for our companies to plan research and development projects,” said Freede.
Senator Orrin Hatch is sponsoring the bill in the Senate, so time is of the essence for him to get it done.
The first step is the Senate Finance Committee, which Hatch chairs.