The White House said Monday that it opposes a House bill to repeal a 2.3 percent tax on medical device companies because repeal wouldn’t do anything to improve healthcare, and instead would just go to profitable companies.
“The medical device industry, like others, will benefit from millions of new consumers who are gaining health coverage under the Affordable Care Act,” the Office of Management and Budget said in a statement of administration policy. It added that repeal would only “provide a large tax break to profitable corporations.”
“This excise tax is one of several designed so that industries that gain from the coverage expansion will help offset the cost of that expansion,” it added. “Its repeal would take away a funding source for financial assistance that is working to improve coverage and affordability and would increase the Federal deficit by $24.4 billion over 10 years.”