The device tax was included in the Affordable Care Act as a way to raise revenue. Industry, along with many Republicans, have argued that it threatens the success of important U.S. businesses.
The medical device industry is "one of the few that creates a trade surplus," said David Dvorak, AdvaMed's chairman of the board.
Dvorak argued that the tax's logic — that it would be counter-balanced by a wave of business for device manufacturers as new patients enter the healthcare system — has "fallen apart."
"We are sending $97 million to the [Internal Revenue Service] every two weeks," he said. "That is money that could be going toward research and development."
The remarks took place at a press luncheon in Washington.