Posts in Business Tax Advice

Bruce Tigani to Present on the New Tax Act at the Delaware Tax Institute on December 7

A frequent lecturer on The Tax Cuts & Jobs Act of 2017 since its passage in late December, Bruce W. Tigani will be presenting on the New Tax Act at the upcoming Delaware Tax Institute on December 7, 2018.  His presentation will focus on the Qualified Business Income (QBI) Deduction and Choice of Entity Planning & Developments, including the recently announced guidance from the IRS impacting S corporation shareholders, LLC members, and proprietors.  Bruce will conclude with case-study comparisons illustrating the impact of the QBI deduction and other aspects of the New Tax Act on entity selection for doing business.  More ›

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Non-Binding Resolution May Signal First Step in Repeal of Medical Device Tax

A mere few weeks after its launch, and the Delaware Healthcare Industry Blog is setting the national agenda on Affordable Care Act implementation!

As we bemoaned in a prior blog post, the gradual roll-out of widespread health care reform under the 2010 Patient Protection and Affordable Care Act (the “Affordable Care Act”) saw several new tax increases and other revenue-generating mechanisms come into law in 2013, including a new medical device excise tax. The 2.3 percent excise tax is now assessed on the sales price of most medical devices when purchased from a manufacturer, producer, or importer.

Although the medical device tax remains law, the U.S. Senate took steps on March 21st that demonstrate widespread bipartisan opposition to the new tax:

“The Senate voted 79-20 to call for repeal of the tax, but the resolution is non-binding and will not change the levy. The symbolic measure will be attached to a non-binding budget measure drafted by Senate Democrats that is expected to pass on Friday.

Full repeal of the tax may be difficult to achieve, given its $30 billion price tag and the opposition of key Senate Democrats, including Majority Leader Harry Reid.”

Naysayers may point out “nonbinding resolution” is not normally the mark of a D.C. power player (or that “the opposition of key Senate Democrats” includes both of the gentlemen sent to Washington by the Diamond State).  Minnesota’s Al Franken – one of the 33 Democratic Senators who joined with all of their Republican colleagues in last month’s purely symbolic vote – is suggesting that more formal legislation may follow.  Sen. Franken has good reason for optimism; as the Wall Street Journal points out, the House of Representatives came close to a veto-proof vote on its own anti-medical device tax bill last June.  Watch here for further developments!

Author:  James J. Gallagher, Esquire is a member of the Tax, Estates and Business Practice at Morris James LLP.

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