A key House panel advanced a bill to repeal a medical device tax used to help pay for Obamacare after a scalding debate on whether the tax will kill innovation.
The House Ways and Means Committee advanced the bill Tuesday by a vote of 25-14 to the full House. The 2.3 percent tax on device sales has been controversial ever since it was included in the Affordable Care Act.
Repeal has bipartisan support in Congress as Democrats from states with biotech industries have called for it to be struck down.
However, the main sticking point has been how to recoup the revenue from the tax, which would generate $20 billion until 2019.
That issue spilled over into the committee’s debate on whether to advance the bill, as it currently doesn’t have another way to raise the revenue.
“Is there going to be a pay-for?” said the top Democrat on the panel, Rep. Sandy Levin, D- Mich., to his Republican colleagues. “Will you commit now to providing a pay-for [on] this bill when it comes to the floor? I think the answer is probably no.”
Republicans responded that the tax is unfair and that it will harm businesses working to improve innovation.
“It just doesn’t make sense where these people will have to pay for it,” said Rep. Mike Kelly, R-Pa.
Kelly said the tax will prompt medical device makers to go overseas to avoid it.
Rep. Bill Pascrell, D-N.J., countered that the tax also affects imported devices, so even international companies will be affected.
Other Republicans were worried about the impact on businesses.
“I am worried about the damage this tax will continue to inflict on small businesses around the country,” said Rep. Kristi Noem, R-S.D.
Democrats slammed the GOP for that accusation.
“Don’t say that we are against innovation. I am not,” Pascrell said.
