Tag Archives: medical device tax
Today, Research!America urged the 114th Congress to take action on five science priorities in the first 100 days of the legislative session in order to elevate research and innovation on the nation’s agenda:
- Advance the 21st Century Cures Initiative. Spearheaded by Representatives Fred Upton (R-Mich.) and Diana DeGette (D-Colo.),the initiative is a promising step in the right direction, focusing on speeding medical progress from bench-to-bedside by integrating patient perspectives into the regulatory process, modernizing clinical trials, and reducing red tape, among other things.
- Repeal the medical device tax. A provision in the Affordable Care Act, efforts to repeal the medical device tax have garnered bipartisan support as policymakers and industry leaders raise concerns about the tax’s impact on jobs and innovation.
- Enhance and make the R&D tax permanent. The credit, established in 1981, allows companies to deduct certain research expenses, but the short-term extensions have created uncertainty for businesses that rely on long-term planning for research investments.
- Eliminate Sequestration. As part of the 2011 Budget Control Act, sequestration has taken a significant toll on the research ecosystem, forcing institutions to scale back or eliminate important studies and cut jobs. A two-year bipartisan budget deal for FY14 and FY15 reduced the cuts for those years, but the full sequester returns in FY16.
Excerpt of an op-ed by Research!America President and CEO Mary Woolley published in the Huffington Post.
As the new Congress sets priorities, there are strong indications that the political climate is ripe for a surge in science. Bipartisan support for the 21st Century Cures Initiative, a comprehensive study of roadblocks to medical innovation and development of new disease therapies and treatments, is slated to move forward with draft legislation early next year. The measure is expected to address six areas of reform: integrating patients’ perspectives into the regulatory process, modernizing clinical trials, fostering the future of science, investing in advancing research, incentivizing the development of new drugs and devices for unmet medical needs and supporting digital medicine. Research stakeholders ranging from academia to industry to patient groups are working closely with the architects of this initiative, Chairman Fred Upton (R-Mich.) and Rep. Diana DeGette (D-Colo.), to ensure the measure will remove barriers to getting new treatments and cures to patients more quickly.
There is also bipartisan support to reform tax legislation, a light or heavy lift depending on the tax package. All signs point to a repeal of the medical device tax in the new Congress but the jury is still out on whether the R&D tax credit can be made permanent and ultimately whether Congress is ready to tackle tax and entitlement reform overall. A favorable tax climate and strong investments in research are critical to improving our population’s health, boosting the economy and spurring further private sector innovation. With sustained federal funding at risk in a deficit reduction environment, alternative funding models to augment appropriations should be considered including but not limited to a mandatory trust fund dedicated to steady growth in research.
Read the full op-ed here.
Dear Research Advocate,
With all the conversation about the debt ceiling and tax and entitlement reform, it may surprise you to know that an additional topic is on many minds. A wide majority of Americans, 72%, say the new Congress and the president should take action to expand medical research within the first 100 days of the new legislative session. See this and more in America Speaks, Volume 13, a compilation of national poll data providing insights into public sentiment on key research-related issues. See our press release and download the full Poll Data Summary. These polling results are designed to be used in your advocacy and outreach!
Among the growing number of issues that need to be resolved by the new Congress is the medical device tax, which could send research jobs overseas and shrink a critical segment of our innovation economy. In The Hill, Rep. Bob Latta (R-OH) writes about the consequences the tax could have on the medical device industry, including the possibility of a massive decline in R&D investment. As our economy recovers, policy makers must better incentivize R&D investment to keep our nation competitive and ensure that companies are continuing to invest in life-saving research.
More on the first 100 days: As you know, the sequestration deadline has been moved two months, with another delay possible, and there is talk of other cuts to discretionary spending. The delay is terribly frustrating for those planning research investment and sends a very negative message to young scientists planning a career, but it does buy us more time to make our case. The Washington Post published an op-ed by three Washington, DC, institutional members of Research!America that argues compellingly for such funding. Take action now and do two things — collaborate with your local colleagues to write an op-ed for a local publication and send an email to your representatives. Tailor the alert we provide to let them know how cuts could affect your institution and your community.
For those of you in Georgia, the appointment of Rep. Jack Kingston (R-GA) as chairman of the committee that allocates most of the federal funding for biomedical and health research funding presents an important advocacy opportunity. Research!America is helping to facilitate collective action by Georgia institutions, and we would welcome your participation. Please contact Max Bronstein, director of science policy, if you haven’t heard from us yet! Recently, I had the opportunity to discuss Rep. Kingston’s record and prospects for the 113th Congress with Randy Barrett of the ScienceInsider.
Great news! The U.S. Supreme Court issued a decision on behalf of patients and stem cell researchers, effectively bringing to a close the infamous Sherley v. Sebelius case that threatened federal funding for embryonic stem cell research. This decision marks a major victory for the stem cell research cause, but it is critical that all of us remain vigilant; actions at the state level could still curtail embryonic stem cell research. View our press statement on the decision and our updated resource page on stem cell research. We will be talking about the importance of stem cell research when we honor the California Institute for Regenerative Medicine (CIRM) at our upcoming Advocacy Awards dinner. See more about this March 13, 2013, event here.
Dear Research Advocate,
Progress toward a deal to avert the fiscal cliff seems now to have been reversed, with talk today of reintroducing aspects of the Ryan budget — more severe than sequestration. Holidays or not, this is no time to let up on our individual and collective advocacy for research. Reps. Fudge (D-OH) and Stivers (R-OH) are leading a bipartisan sign-on letter, urging Congress to take into account the critical importance of NIH in any deficit reduction plan. Take action and urge your representatives to sign on! For those of you in Ohio, if you would like to thank Reps. Fudge and Stivers for their efforts, you may obtain their contact information here.
In addition to ensuring sufficient federal funding for research, the government must provide a tax and regulatory environment that is pro-research and pro-innovation. Last week, Research!America sent letters to congressional leaders and the president sharing information about significant contraction in the medical device industry that appears to be associated with the looming medical device tax. If our nation’s leaders truly believe that innovation is the path to lasting economic prosperity for our nation, then they must evaluate both funding and policy, including tax policy changes, in that context. Excerpts of the letters were quoted in CQ Healthbeat and POLITICO Pro articles.
Sen. Daniel Inouye (D-HI) died this week; reportedly, his last word was “aloha.” Sen. Inouye’s incomparable leadership and half-century of service to our nation will be sorely missed. As chairman of the Appropriations Committee, he played a vital role in boosting funding for research. He was an ardent advocate of nursing and nursing research, as well as research focused on helping those in military service and our returning veterans.
We look forward to working with Sen. Barbara Mikulski (D-MD), who will succeed Sen. Inouye as chairman of appropriations. Sen. Mikulski received the Whitehead Award from Research!America last March. She was honored for her long-standing leadership and support for medical research, public health and prevention, regulatory science, and the physical sciences, as well as her support for research as a force for economic competitiveness. She is a champion of women’s health issues and has authored comprehensive legislation to accelerate research on Alzheimer’s disease.
As our nation continues to mourn the tragic shooting in Newtown, CT, I am reminded that research has a role to play in keeping Americans safe through better understanding of how to assure public safety concerning guns, keeping in mind both government and individual responsibilities, and in better understanding mental health challenges. Our public policies should be evidence-based, and when we don’t have the evidence, we need the research to establish it. Research!America extends our deepest sympathies to the families affected by this incident.
It is indeed a time of reflection as to what should be the role of the government in assisting us as individuals — and as a society — in accomplishing our goals and living our values. Our nation and our elected representatives have a challenging time ahead, as does every advocate for research and every patient and caregiver. Let’s not let the year end without stepping up to the challenge, engaging our policy makers and putting research front and center.
All of us at Research!America wish you and yours a joyous holiday season.