CCAGW Urges Senate Support for Chairman Kevin Brady's Amendment to Cut Healthcare Taxes | Council For Citizens Against Government Waste

CCAGW Urges Senate Support for Chairman Kevin Brady's Amendment to Cut Healthcare Taxes

December 12, 2018

U.S. Senate
The Capitol
Washington, D.C. 20510

Dear Senator,

The Council for Citizens Against Government Waste (CCAGW) was pleased to see that House Ways and Means Committee Chairman Kevin Brady (R-Texas) has introduced an amendment to the Senate amendment to H.R. 88, a tax extenders bill. CCAGW is particularly supportive of the chairman’s effort to delay the medical device tax by five years, the health insurance tax by two years, and the “Cadillac Tax” by one year. CCAGW urges you ask Leader McConnell to bring up this legislation immediately after the House passes the bill.

President Ronald Reagan said, “Business doesn't pay taxes. It collects taxes.” That is certainly the case when it comes to the healthcare taxes. These taxes raise the cost of healthcare, which are eventually passed along to the patient.

CCAGW has long supported the repeal of the medical device tax that is found in the Patient Protection and Affordable Care Act, or Obamacare. This is an exceptionally egregious tax because it is an excise tax on sales of specific medical devices, such as those sold to hospitals, physicians, and other healthcare providers. Because more than 80 percent of all medical device companies are small businesses with 50 or fewer employees, reimplementation of this tax will severely harm research and development of this innovative industry. The two-year suspension, which was first passed in late 2015, and again earlier this year, gave device manufacturer CEOs more certainty, enabling them to increase their R&D budgets, improved the climate for raising capital, and allowed 70 percent of medical device manufacturers to increase hiring of employees. Repeal of this destructive tax enjoys bipartisan support and therefore deserves consideration in any end-of-the-year legislative package.

Again, CCAGW urges your support of these initiatives. All votes on H.R. 88 will be among those considered for CCAGW’s 2018 Congressional Ratings.

Sincerely,

Tom Schatz
President, CCAGW

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