US medical device tax back in effect after two-year pause

NEW YORK (Reuters) - A 2.3 percent tax on the sale of medical devices went back into effect on Monday after a two-year suspension, despite opposition by U.S. lawmakers and the medical manufacturing industry.

The excise tax on catheters, pacemakers and other healthcare products was among several fees and taxes imposed in January 2013 to help fund the Affordable Care Act, also known as Obamacare. It was projected to raise roughly $30 billion over a decade.

After drawing harsh criticism from both political parties as well as medical industry lobbying groups, the U.S. Congress approved a suspension of the levy in 2015.

Most tax-friendly states in America
See Gallery
Most tax-friendly states in America

10. Delaware

(DenisTangneyJr via Getty Images)

9. Mississippi

(SeanPavonePhoto via Getty Images)

8. South Dakota.

(Getty Images)

7. Alabama


6. Louisiana


5. Arizona

(Dreamframer via Getty Images)

4. Nevada

(ddub3429 via Getty Images)

3. Florida

(TraceRouda via Getty Images)

2. Alaska

(yenwen via Getty Images)

1. Wyoming

(Putt Sakdhnagool via Getty Images)


The suspension expired on New Year's Day after unsuccessful last-ditch efforts by Republicans.

Republicans would have automatically killed the tax if they had succeeded in repealing Obamacare last year. The levy remained in Republican-crafted tax legislation signed by President Donald Trump on Dec. 22.

Supporters of the tax say it has helped provide health insurance to millions of previously uninsured Americans.

Critics, who have vowed to keep fighting the levy, say it has stifled the medical industry and slashed jobs.

"The tax has had a significant negative impact on medical innovation and has resulted in the loss or deferred creation of jobs," the Advanced Medical Technology Association lobbying group said on its website.

7 Requirements for the Child Tax Credit

The Child Tax Credit can reduce your tax bill by as much as $1,000 per child, if you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income. You and/or your child must pass all seven to claim this tax credit.

Read More

Brought to you by

Video: Can I E-File If I Owe Taxes?

Filing your tax return online can be extremely convenient. But did you know the IRS also allows you to make payments on taxes you owe from previous years? Watch this video to learn more about e-filing your taxes.

Read More

Brought to you by

Buying Your First Home

Buying your first home is a huge step, but tax deductions available to you as a homeowner can reduce your tax bill.

Read More

Brought to you by

What is a W-2 Form?

A W-2 tax form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes. Here are the basics.

Read More

Brought to you by
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.