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Senators attach device tax repeal to budget bill

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WASHINGTON — The U.S. Senate passed an amendment to a budget resolution Thursday night repealing the Affordable Care Act tax on medical device manufacturers.

The Senate voted 79-20 to repeal the 2.3 percent tax on device maker revenue as part of the chamber's 2014 budget resolution. The resolution, and, thus, the amendment, are non-binding.

The tax has long been a target for Rep. Erik Paulsen in the House, and Sens. Amy Klobuchar and Al Franken in the Senate. Though the House passed a repeal bill last summer (with support from every Minnesotan), the Senate has never taken one up.

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.

A bipartisan mix of lawmakers voted for the amendment, including the Budget Committee chairwoman, Patty Murray. But there were several notable 'no' votes as well, among them Majority Leader Harry Reid and Max Baucus, the chairman of the Senate Finance Committee, which deals with tax-related matters.

Devin Henry can be reached at dhenry@minnpost.com.


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