One tax expert thinks the two-year suspension of the device excise tax likely heralds further suspensions or a repeal.
Marie Thibault
Will it stay or will it go? That’s been the question since the two-year suspension of the medical device excise tax was announced in late 2015.
One tax expert believes that the device tax won’t be back. Michael Cronin, senior manager, New England state and local indirect tax and national medical device excise tax leader, at Grant Thornton LLP, called the tax suspension “the camel’s nose in the tent.” The suspension “hopefully allows bigger things, allows the camel in the tent, and hopefully this is repealed,” he said.
Cronin was speaking on a webinar, “The Medical Device Excise Tax, Wrap Up, Audits and Refunds,” hosted by the Massachusetts Medical Device Industry Council (MassMEDIC) on February 10. To support his statement, he noted that the current suspension makes it easy for Congress to delay the device tax again. He pointed out that the tax was deeply disliked by legislators in both political parties and raised less than initially expected.
“My crystal ball tells me this tax will go away and not only be suspended for two years,” Cronin said.
