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Could medical device tax cost jobs, lives?

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    New calls for Congress to repeal rate increase

  • Duration 3:45
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But new calls now for congress repeal that medical device tax which kicked in at the beginning of this year.

2.3 percent tax that the industry claims will cost 43000.

Jobs.

And ultimately cost patients' lives.

Steve Ferguson is chairman of cook medical the country's largest family on medical device company.

And he joins me now sir good morning to you I am told you have some forty years experience in this business.

What is this tax due to your business -- From home for us and they impact is on on patients and -- -- For us that.

That amounts to a more of them 1% increase in our tax -- Our federal factory because that.

When it's 2.3 at the top -- the -- to the bottom.

Dropped down and increases our tax about the about 20%.

For the industry as a whole -- slow.

Very small auto industry in terms of the size of comments.

98% of moral lesson 500 boys 9% or less -- 100.

The average.

-- bottom line for those come races between three point.

Four and 6% we have -- a 10%.

So world -- what the industry averages it in net income go ahead of David fear and how many jobs are on the line because of various other companies are saying they're laying off.

-- thousand here 15100 there what about you.

Who we are -- we've never laid anybody off and did not intend to.

What there are three things that you look when you get additional expense ones are and he.

-- supporters and ones on capital Mosul three big areas everything else was small ball.

And what we've done those.

Put a show all fall we're -- -- -- five plants within the midwest each point about 300 people on -- We've -- -- on hold on because of the attacks that's a shame because you -- -- created jobs that are in the midwest part of the country that needs it.

Or why do you think the White House why do you think -- all -- about your industry.

Well I think favor just looking for money and I think they thought that we were like the pharmaceutical industry which has a few big -- -- large margins but as you can see.

Of the device industries -- it's.

7000 small companies there are Smart companies and part of those -- are also on pharmaceuticals.

But basically it's so.

All small company industry.

A lot of them -- start ups so this -- makes them make hard choices between.

-- -- Projects and employees and makes them make tough decisions just wait one more question mr.

Ferguson you have Republican and democratic senators.

There are now lobbying to have this.

Perhaps reversed or eliminated altogether.

Do you hold out much hope -- that will happen.

Yeah we are very optimistic we're in love -- we have -- parson.

Support.

In terms of sponsors on the bill would swing.

Donna Lange calls from core horror and Franco and them.

And -- And in the house we all 128.

Co announcing -- -- -- you're optimistic bipartisan support yes I'm very optimistic.

And what the president saying that.

Manufacturing.

Could you pick a better industry than -- -- is clean high paying wages.

A susteren and he's saying that he wants to encourage manufacturing.

We'll we'll we'll see if -- -- safely handle.

Appreciate your time Steve Ferguson thank you -- out of Indiana with us today we'll follow it thank you sir.

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