I appreciate my friend and colleague, Mr. Paulsen, for organizing this. I think at the outset what should be noted most is, after the House finishes its regular business of the day, we hold these opportunities for people to take 60 minutes…
I appreciate my friend and colleague, Mr. Paulsen, for organizing this.
I think at the outset what should be noted most is, after the House finishes its regular business of the day, we hold these opportunities for people to take 60 minutes to talk about a particular issue; and, generally, these 60 minutes are divided up where one party has an hour and then the other party has an hour. And I just think that it's really important to note that here we are talking about an issue, and it's people from both parties getting together.
Everywhere I go, I hear about people wanting folks in Congress to work together; and here we have an issue where we've got, as Mr. Paulsen said, 260 cosponsors. A majority of the House of Representatives is already on the legislation to repeal the medical device tax. So I applaud his leadership in working in a constructive way and building a coalition around this issue. And I'm going to take some time a little bit later to continue talking about this issue.
But if I could just for the moment, I would like to recognize my colleague Mr. Peters from California for some comments on the medical device tax.
Mr. Speaker, I appreciate the comments of the gentleman, once again emphasizing the fact that this is one of those where we can agree in a consensus way across party lines. And I hope we can get this legislation to repeal this tax up for a vote soon.
At this time, I would like to recognize my colleague from New York (Mr. Owens).
Mr. Paulsen, if it's okay, I would like to take one more opportunity to offer a few comments on this. I wanted to make sure my colleagues on this side had a chance to speak.
But I think there are a couple other points that ought to be made. This is an excise tax that's being assessed on an industry that is, by any imagination, one of these American success stories. This is an American-based industry where innovation and hard work have created this opportunity for great value for this generation. It's created great jobs, and it's also enhanced the quality of health care in this country for all of us. This is an industry we should embrace, we should be proud of. It's a poster child for American innovation.
And isn't it ironic that here in the policy world, we now have a policy put in place where we say, well, let's take this industry and let's apply a special tax to it. And when this was put in the ObamaCare bill, it wasn't put in for any particular policy reason associated with this industry. It was put in to raise revenue, pure and simple. It wasn't put in for any other reason.
Why we would single out this industry, to me it doesn't make sense. This is an industry that has a few very large companies in it and a number of smaller companies that are also across-the-board innovators.
And when you tax, as a couple of the previous speakers have said, not profits, but when you tax sales revenue, you know, if you're a start-up company, you don't have a profit.
Why would we put a 2.3 percent tax on the sales of a start-up company?
This, on so many levels, is rather disturbing, when you think about it. This is an industry that already faces some challenges in terms of the regulatory approval process through the Food and Drug Administration. This is an industry that we ought to be looking at to figure out ways to allow this industry to work better, and instead, the Affordable Care Act created this additional tax.
Now, this tax started this year, in 2013. Already the industry, collectively, has paid over $1 billion through July of this year. This is real money--real money.
And what we're doing is we're taking an industry that, as I said, was successful and we're saying--in some respects we're giving them an incentive to move offshore. That's not what we want. We want these jobs onshore.
By the way, we like them to sell their product offshore. That's another thing that hasn't been mentioned, about how powerful this industry is to the U.S. economy. This is a net exporting industry. This industry contributes in a positive way to our balance of payments with the rest of the world.
We've been running a trade deficit not because of the medical device industry. They've been part of the solution to that challenge of the trade deficit. And here in the public policy world, a tax has been assessed on that industry. It just doesn't make sense.
I just want to close by, once again, mentioning my admiration and appreciation for Mr. Paulsen, who's been a leader on this issue. We've got the 260 cosponsors on this bill. We've got the votes to pass it.
The Senate earlier this year, during consideration of their budget resolution, in more of a symbolic vote, but on medical device tax had a bipartisan majority come together as well to suggest we should remove this tax.
For all the controversy that dominates Washington today, for all the partisan bickering, for all the polarization, and for all the gridlock, here we have an issue where we all agree it's the right thing to do.
I again thank my colleague for organizing this opportunity to talk about this issue tonight and, collectively, I hope we can encourage more momentum to bring this legislation up for a vote. Let's do the right thing for this economy, the right thing for the industry.