AdvaMed members predict that the medical device tax will take an enormous toll in dollars and employees. A recent survey of 81 members shows that 62% are planning to lay off current employers or hire fewer new people. The survey results also show that the industry will have to spend anywhere from $400 to $667 million just to implement the tax.
Read the full survey here.
The respondents were from companies with less than $1 million in annual revenue up to more than $1 billion.
Ninety percent of companies said their current technology was not enough to comply with the reporting and other record-keeping requirements of the tax. More than 50 percent said they would need completely new systems or major changes to existing ones. The Internal Revenue Service earlier this month released final regulations about how to collect the tax. The survey was done before the final regulations were released.
“While Washington talks about a fiscal cliff, this tax could push us off an innovation cliff, costing jobs and hurting our industry’s ability to find tomorrow’s treatments and cures,” said Stephen J. Ubl, president and CEO of AdvaMed.