Ayotte: Medical device tax hinders innovation
Ayotte, R-N.H., spoke to about 100 employees in the cafeteria. It was not her first visit to the company that makes medical devices, and she took the opportunity to talk about the medical device tax that has impacted the company.
When asked by an employee how she would make up for the lost federal revenue if the tax were repealed, Ayotte said the federal budget committee has identified several options, including tax reform.
The tax hurts innovation, Ayotte said, since its targets revenue, not profits, causing established companies like Smiths to lessen its research and development budgets and make it more difficult for new startups to find investors.
After the event, he said the tax has caused the company to close a facility in the United Kingdom and one in Massachusetts as well as a distribution center in New Hampshire.
Employees were also concerned about FDA regulations that slow federal approval processes. One employee asked if the 2012 Food and Drug Administration Safety and Innovation Act designed to reform the process was actually speeding up approval.
“Frankly, we can do a lot better,” Ayotte said. “We’ve got to look at what Europe’s done that’s better. I think there are better models and more efficient models. Because the problem is it takes you two or three years longer here than it does in Europe. And we’re trying to preserve jobs here.”
It is known for infusion systems that deliver medication, tracheostomy tubes to open airways and safety needles and safety catheters that prevent needle-stick injury and exposure to bloodborne pathogens.