Not much left for manufacturing in the state of Massachusetts. The Obamacare bill will certainly kill productivity and innovation at least in this country...
Reaction from the industry was mixed, at best. Tom Sommer, president of the Massachusetts Medical Device Industry Council, blasted the tax, saying it would stifle growth and put innovation in peril.
"You're certainly going to see an impact on growth and expansion by medical device companies in this country that are going to be faced by a higher tax bill. In addition to job cuts and rollbacks on expansion plans, you're going to see a reduction in R&D spending. Innovation in this industry is definitely in jeapardy, which is shameful," Sommer told MassDevice. "Obviously we're disappointed in the final outcome. The device tax does not take effect until 2013 and we're hopeful that between now and the implementation date we'll be able to scale back, and certainly we'll be supportive of any effort to remove that tax from the law."
Dr. James Muller, founder and CEO of InfraReDx, told us last week that the tax would hit his firm's ability to attract investors. InfraReDx is developing a near-infrared spectroscopy catheter to detect the intracoronary composition of lipid core plaque.
"The [tax] hurts us in a different way, because investors say to us, 'You have all these obstacles and if you're successful they're going to tax you.' It's wrong and not in the best interest of the U.S. We hear about China and India overtaking us, but we're swimming upstream here," Muller said.