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# Stakeholders Urge Congress to Axe the Device Tax
- URL: https://www.fdaweb.com/stakeholders-urge-congress-to-axe-the-device-tax/
- Published: 2018-12-11T12:00:00.000Z
- Updated: 2026-09-15T00:49:57.000Z
- Author: David McFarland
- Tags: Devices, #legacy-id-D5143015

More than 140 industry and advocacy groups are urging Congress to permanently repeal the medical device tax before the end of this year. The tax is set to be reinstated in 2019\. “Full repeal of the device tax would mean that the medical technology industry can continue innovating new approaches to managing chronic health issues, improving the overall quality of life, and developing technologies that could revolutionize the way we treat disease and illness in this country,” their [letter](https://www.advamed.org/sites/default/files/resource/stakeholder%5Fletter%5Furging%5Frepeal%5Fof%5Fdevice%5Ftax%5F-%5Fdec%5F2018.pdf?ref=fdaweb.com) reads.  
  
The groups complain that because the tax is levied on revenues, not profits, it is particularly challenging for smaller companies, which represent about 80% of the industry and often only generate revenue but no profit. “This has a downstream effect on the entire innovation ecosystem for medtech,” the groups write. “It is also worth noting that the U.S. medical technology industry saw its jobs ranks fall by nearly 29,000 while the medical device excise tax was in effect, according to data from the U.S. Department of Commerce.”