Category: Erik Paulsen

By Dave Mindeman

Word of the day: Onerous

ONEROUS (DEFINITION): Unreasonable, oppressive, or cruel, or excessively trying condition, duty, or task whose disadvantages or costs outweigh its advantages or benefits.

Let's use onerous in a sentence....

"Last year, the House overwhelmingly passed legislation repealing the tax, and I'm confident we'll do so again," (Rep. Erik) Paulsen said in a statement. "Now it's time for the U.S. Senate to follow the House's lead, vote to repeal this onerous tax, and ensure the continued leadership of American medical device manufacturing."

Rep. Paulsen has used many words to describe the Medical Device Task....none of them complimentary. But to use "onerous" as his newest adjective is another stretch.

What is especially inconsistent is that Paulson's remedy via his House Republican colleagues is to repeal the tax and replace its $30 billion in revenue with cuts to the health care subsidies which will allow the uninsured to get affordable care.

In other words, another indirect attack on the Affordble Care Act. Because Medical Device manufacturers have a large presence in Minnesota, Paulsen has been able to convince the Minnesota delegation that this "onerous" tax is hurting this industry.

But in what way? What is the "onerous" result? After all, the tax is in effect. It has been since January 1st. Outside of layoffs that were already planned from last year for these companies, where are the cutbacks?

What is particularly interesting is the results of this survey done by the Emergo Group analyzing the outlook of the industry itself:

The 2013 Medical Device Industry Survey was conducted in January 2013, with a total of 3,509 respondents. Only one response per person was allowed. Survey questions were emailed to an in-house list maintained by Emergo Group. A publicly available online link to the survey also solicited responses from industry via social media channels.

Due to the nature of our business, QA/RA professionals make up a much higher percentage of respondents than they would otherwise represent in the industry. Some results should be interpreted bearing this in mind.

Question: When you think about the overall business environment for the medical device industry, which statement best describes your personal outlook for 2013?



Only 12% of the industry has a negative outlook for 2013. 71.1% had a positive outlook. And yes, the Medical Device Tax is currently in effect.

Rep. Paulsen, please tell us what is "onerous" about that?

Category: Erik Paulsen

by Dave Mindeman

More developments in the ongoing Medical Device Tax saga. In the Senate, a non-binding resolution has shown majority support for the repeal of the Device Tax. This may end up being attatched to the 2014 Budget Resolution in the Senate.

This has become some kind of Minnesota obsession among the entire Minnesota Congressional delegation - Democrats and Republicans alike (although Erik Paulsen takes the most credit).

Mostly this shows the power of the Medical Device corporate lobby. They have everyone convinced that this will kill jobs and wreck the growth of medical devices (all evidence to the contrary).

Here is the key problem:

The amendment passed Thursday did not detail how to pay for the tax's $30 billion price tag, which has long been a sticking point in tax negotiations. The House's payment mechanism — reducing federal health insurance subsidy over-payments — drew condemnation from many Democrats last summer. President Obama also opposes the tax's repeal.

Let's look at the logic of this. First, the $30 billion is part of the funding for Obamacare. Republicans contend that they don't like deficits, yet they are willing to open up this huge hole. And their idea of reducing subsidies just brings us back to increasing the number of uninsured again. Exactly the reason Obamacare is supposed to exist. Secondly, this tax only applies to the sale of medical devices. It is not taxing the industry directly. And a lot of the money is recoverable from the end user - more than likely, insurance. The Medical Device companies get their sale, they get their profit, and then, and only then, does the tax apply.

It is essentially a user tax....same as a gas tax pays for roads.

I realize that our Congressional representatives believe this is a Minnesota issue, but the lobbyists are greatly exaggerating the effects. And besides, Obama will most certainly veto this if they don't come up with a reasonable revenue alternative.

And that just isn't happening.

Category: Erik Paulsen

by Dave Mindeman

Here is the first paragraph of a press release from Rep. Erik Paulsen's office:

Washington, D.C. – Representative Erik Paulsen (R-MN) and Representative Ron Kind (D-WI), today introduced H.R. 523, the Protect Medical Innovation Act, bipartisan legislation aimed at repealing the 2.3 percent excise tax on medical device innovation. Rep. Paulsen and Rep. Kind introduced the legislation in the House with a bipartisan group of 175 original cosponsors. Companion legislation will soon be introduced in the U.S. Senate by Utah Senator Orrin Hatch (R-UT) and Minnesota Senator Amy Klobuchar (D-MN).

Here is how it was titled: Paulsen, Kind Introduce Medical Device Tax Repeal Bill

ECM Publishers has a "news" site called Hometown Source. Here is their first paragraph about Paulsen's release:

Washington, D.C. – Minnesota’s Third District Rep. Erik Paulsen (R-MN) and Rep. Ron Kind (D-WI), today introduced H.R. 523, the Protect Medical Innovation Act, bipartisan legislation aimed at repealing the 2.3 percent excise tax on medical device innovation.

Rep. Paulsen and Rep. Kind introduced the legislation in the House with a bipartisan group of 175 original cosponsors. Companion legislation will soon be introduced in the U.S. Senate by Utah Sen. Orrin Hatch (R-UT) and Minnesota Sen. Amy Klobuchar (D-MN).

Title of the article: Paulsen, Kind introduce medical device tax repeal bill

Looks pretty similar doesn't it. The one difference is that the ECM article identifies which district Paulsen represents. Otherwise, it is just a straight copy.

Is that what constitutes journalism nowadays? If you look at the rest of it you will see that ECM just copied the entire press release verbatim and placed it on the site.

Hey, why not just post a direct link and save the space?

And who did the article???

By Site Editor on February 6, 2013 at 11:09 am

From Paulsen's pen direct to your local weekly.

Note: Apparently the HomeTown Source web site publishes all the Congressional press releases....as far as I can tell. They have a section set aside for it. If that is the case, then publishing them is fine as long as the entire Congressional delegation gets equal treatment.....-Dave M.