Pence’s letter to Obama asking to repeal medical device excise tax

WLFI File Photo
WLFI File Photo

INDIANAPOLIS (WLFI) – On Monday, Gov. Mike Pence sent a letter to President Obama asking him to work with Congress toward repealing the 2.3 percent excise tax on medical devices that was originally passed as part of the Affordable Care Act.

The tax went into effect on Jan. 1, 2013. But Pence said, the tax has had a negative impact on the economy and jobs in Indiana and across the nation.

“Repealing the medical device tax will allow companies to expand and grow jobs, not only in Indiana but across our great nation,” said Pence in a news release. “This thriving industry should be allowed to innovate and grow, rather than be hampered by an industry-specific tax.”

Inside Indiana reports that life sciences and the medical device industry is important in Indiana.

  • Indiana is second in the nation in exports of life sciences products at a value of more than $9.7 billion.
  • The life sciences industry provides $55 billion total impact for Indiana’s economy.
  • Life sciences companies employ more than 55,000 Hoosiers, with 20,000 of them employed directly in medical device-related jobs.
  • Between 2002 and 2009, Indiana added more than 8,800 life sciences jobs, 5,600 of which were in the medical device sector.

The average jobs in Indiana medical device companies pay 56 percent more than the average wage in Indiana.

Medical device industry employment is open to a wide range of Hoosiers, with 53 percent of jobs in the industry not requiring a college degree. 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, off topic, 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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