Tax on medical devices to resume after 2-year suspension

BOSTON (AP) — While much of corporate America will enjoy a tax cut in 2018, one industry is getting a tax increase.

A 2.3-percent excise tax on medical device manufacturers is set for reinstatement Monday after a two-year hiatus. It was originally imposed in 2013 as one of several taxes and fees in the Affordable Care Act that pay for expanded health coverage.

The tax was unpopular with Republicans but also many Democrats from states like Massachusetts and Minnesota with large clusters of medical device firms.

Congress voted to suspend the tax for 2016 and 2017 and the industry fought to have it permanently eliminated by 2018. But that hasn’t happened yet and companies are warning the tax will cost $20 billion over the next 10 years, hurting jobs and product development. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others and keep the conversation on topic and civil. If you see an inappropriate comment, please flag it for our moderators to review.

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