Industry lobbies to repeal new U.S. medical-device tax

A 2.3 percent federal excise tax on medical technology that takes effect Jan. 1 could lead to losses for small- and mid-sized medical-device companies and discourage venture capital investment.

Smaller medical-device companies already spend a great deal on overhead and research and development costs that result in profit margins in the single digits, said Mike Handley, president of the Northern Colorado Bioscience Cluster.

“It will … hurt small- and mid-sized companies,” Handley said. “Clearly, they can’t absorb the cost like large companies can.”

The tax on medical devices is part of President Obama’s Affordable Care Act, which passed by Congress in March…