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New tax on medical device firms takes effect

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BOSTON (AP) — A new tax on medical device makers has taken effect after an unsuccessful attempt by the industry to delay the tax as part of the fiscal cliff deal reached in Washington.

The 2.3 percent excise tax is one of several taxes that are designed to help pay for President Barack Obama's federal health care overhaul.

The head of the Advanced Medical Technology Association, Stephen Ubl (YOO'-bul), said in a statement that efforts to repeal the tax will continue.

Medical device makers have warned the tax could cost about 43,000 jobs nationwide.

But proponents of the tax say the industry will benefit from the increased number of Americans who will have access to health insurance under the new law.

Medical device companies employ nearly 24,000 people in Massachusetts.

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