Recently in a local press conference, Congressman Mark Souder warned that "we are in the fight of our lives" over provisions in the "compromise" health care reform bill known as the Baucus Bill (Max Baucus is the chair of the Senate Finance Committee).
The issue that we cannot afford to ignore is the arbitrary tax of $4 billion per year placed on medical devices. Our local biomedical industry would stager under the weight of up to a 30-percent tax on the profits of orthopedic implants. Last week, Democratic Senators Evan Bayh, Al Franken and Amy Klubacher joined Republican Senator Richard Lugar by sending a letter of opposition to Senator Baucus regarding the income tax surcharge. "The proposed medical tax would harm economic development and health care innovation nationally and in our states."
Let's take it a step further and understand what it would do locally. Collectively, the Warsaw orthopedic cluster accounts for $11 billion in sales accounting for 50 percent of domestic orthopedics sales and 33 percent worldwide (Biocrossroads Report, 9/2009).
Last week, Governor Daniels joined governors from California, Utah, Minnesota and Nevada and stated their public opposition to the tax. They said the proposed tax rate of 10 to 30 percent on corporate earnings "would make the United States the highest tax jurisdiction in the world in which to produce medical technology."
The orthopedic industry started in Warsaw over 100 years ago. Innovation, scientific process and entrepreneurial drive grew the industry from wooden splints to sophisticated joint systems and spinal implants right in our back yard.
This debate is going on now. It is very important to let your senators, congressmen, governor and Senator Baucus and his committee know how you feel about this issue. Do not delay in writing a letter, faxing, e-mailing or calling.
Write to Senator Evan Bayh, 1650 Market Tower, 10 W. Market St., Indianapolis, IN, 46204, fax 317-554-0760; Senator Richard Lugar, 1180 Market Tower, 10 W. Market St., Indianapolis, IN 46204, fax 317-226-5508; Congressman Mark Souder, 700 N. Park Ave., Suite D, Winona Lake, IN 46590, fax 574-269-3112; Congressman Joe Donnelly, 207 W. Colfax Ave., South Bend, IN 46601; Senator Max Baucus, 219 Dirksen Senate Office Building, Washington D.C. 20510.
