Excise tax may prove costly, industry group warns

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A medical device excise tax scheduled to take effect in 2013 will cost billions of dollars and thousands of jobs, a letter to Congress from an industry group warns. The Advanced Medical Technology Association cites a study it commissioned as evidence. The study asserts that a 2.3% excise tax on medical devices will cost manufacturers more than $2.7 billion each year, and could reduce industry-related jobs by 43,000. Hardest hit would be states with the most workers in the sector. These include California, Colorado, Indiana, Massachusetts and Minnesota, the organization notes.