While we argue about whether AHCA is a net positive, there are some pretty great aspects to this piece of legislation – like the $1 trillion in tax cuts over the next decade. One of those tax cuts will directly benefit Coloradans. Inside of AHCA, there is a $20 billion tax cut for medical devices.
The medical device tax particularly hurt Coloradans as Colorado is known for its medical device industry. Even Stryker Corporation, the company started by liberal funder Pat Stryker’s grandfather, felt the effects as it laid off a 5% of its labor in 2013 due to the tax. As we reported in 2012:
“As the Boulder County Business Report detailed in May, the 2.3% Obamacare Medical Device Tax is weighing heavily on Colorado businesses that deal in medical equipment. Coming amid a stagnant economy — unemployment rose in Colorado in April and May — it couldn’t be a less welcome change to struggling companies.”
In case you don’t know how important medical devices are to Colorado, Colorado’s medical device sector is ranked sixth in the nation, according to the Colorado Bioscience Association. Here are a few other stats that are somewhat dated; however, still show the size of the industry in Colorado.
- Employment in the industry grew 4.4% from 2012-2014
- Colorado employs 30,000 people in the bioscience industry, creating 159,000 direct and indirect jobs, translating into $8 billion in payroll, at an average salary of $90,530
- For every job created in Colorado’s bioscience industry, four direct and indirect jobs are created
This part of AHCA is a big win for jobs in Colorado and innovation everywhere.