Pat Toomey, R-Pennsylvania, was elected to the U.S. Senate from Pennsylvania on a platform of limited government, economic and job growth, and restoring fiscal responsibility. Since taking office in 2011, he has distinguished himself as a leader on economic, financial services and budgetary issues. Recently, the Business Magazine spoke to Senator Toomey to hear his thoughts on several key issues for the business community.
Seventy nine senators, including 34 Democrats, backed a non-binding vote last year to repeal the health-care law’s tax on medical devices — a 2.3-percent tax on the sale of any taxable medical device (e.g., artificial hips or pacemakers) that is paid by medical device manufacturers and importers. Why do you support its repeal, how likely is it, and what is the potential impact?
The reason I support repeal of this tax is because it’s doing a lot of harm to Pennsylvania and to the United States. This, as you pointed out, is the tax on the sales of medical devices, irrespective of whether a medical device company is making a profit. The average profit margin in the industry is less than 5 percent of total sales. Imposing a 2.3-percent tax on total sales wipes out basically half of all the profits before the income tax takes so much of what’s left.
What’s ended up happening is one of the most vibrant, successful industries in America — and great manufacturing companies that make wonderful high-tech products that help improve the quality and the length of our lives — has been really knocked on its heels. Layoffs have been forced. New hiring is not happening. Expansion of companies can’t happen because of this tax. These are the reasons why I think it’s doing so much damage. It was never a good idea and we should repeal it.
For full interview, read December’s On the Hill in the Business Magazine.
