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GOP Governors Write Letter To Baucus Opposing His Medical Innovation Tax

Five Republican governors have sent a letter to Senate Finance Committee Chairman Max Baucus to voice their opposition to his proposed $40 billion tax on medical device makers arguing that it would kill jobs and stiffle medical innovation.

"We all support health care reform, but special taxes on the companies that bring high-quality, innovative solutions to health care professionals runs counter to the goals of better health care for America," reads the letter, which is signed by, Governors Tim Pawlenty of Minnesota, Mitch Daniels of Indiana, Jim Gibbons of Nevada, Arnold Schwarzenegger of California, and Gary Herbert of Utah.

The tax would raise the price of as many as 80,000 products, according to the letter, including toothbrushes, eyeglasses, artificial heart valves, and diagnostic equipment.

The letter notes that the industry employs 360,000 people in the U.S., but that the tax hike would be the equivelent to a 10 percent to 30 percent income tax surcharge, depending on the business, which would make the U.S. "the highest tax jurisdiction in the world in which to produce medical technology."

Not only would the tax cost jobs, the governors argue, but would increase health care costs.

You can download a PDF of the full letter here.

Comments

Pingback| 9.23.09 @ 11:37AM

Twitter Trackbacks for The American Spectator : AmSpecBlog : GOP Governors Write Let links to this page. Here’s an excerpt:

…amspec American Spectator 111 Show more Shortened Links Linking to the spectator.org page http://bit.ly/GAccl info http://bit.ly/VeFJz info   3 tweets Tweet The American Spectator : AmSpecBlog : GOP Governors Write Letter To Baucus Opposing His Medical Innovation spectator.org/blog/2009/09/23/gop-governors – view page – cached GOP Governors Write Letter To Baucus Opposing His Medical Innovation Tax — From…

Tim| 9.23.09 @ 11:46AM

Lets promote health care by making all medical devices more expensive. Insanity.

Pingback| 10.5.09 @ 9:30AM

Hot Air » Blog Archive » Minnesota lines up against medical-device surtax links to this page. Here’s an excerpt:

…Republican Richard Lugar and Democrat Evan Bayh. Medtronic Inc., a major cardiovascular-device maker, is based in Minneapolis, and defibrillator maker Guidant Corp. is based in Indianapolis. Pawlenty joined four other governors in opposing the tax two weeks ago: Five Republican governors have sent a letter to Senate Finance Committee Chairman Max Baucus to voice their opposition to his proposed $40 billion tax on medical…

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