Sen. Dan CoatsDaniel (Dan) Ray CoatsOvernight Hillicon Valley — Scrutiny over Instagram's impact on teens Former national security officials warn antitrust bills could help China in tech race Cyber preparedness could save America's 'unsinkable aircraft carrier' MORE (R-Ind.) said a new report proves the medical device tax within ObamaCare isn’t working.

“This latest report highlights what nearly 80 senators agree on — the medical device tax should be repealed because it stifles innovation and kills jobs,” Coats said Thursday.


His comments came after a report released by the Treasury Department’s inspector general for tax administration showed the IRS is struggling to collect the tax on medical devices imposed by the Affordable Care Act — also known as ObamaCare.

“It is no surprise that the IRS is having difficulty implementing one of the most harmful taxes included in the ObamaCare law,” Coats said.

The medical device tax helps offset some of the reform costs in ObamaCare, which is why Senate Democrats haven’t allowed a vote to repeal that portion of the law. However, the Senate did vote on a budget resolution to repeal it, and that received the support of 79 senators. 

Most of the opposition to the tax comes from lawmakers in states that have medical device producers.

“Given this bipartisan agreement and the more than 20,000 Hoosiers who are directly employed by medical device manufacturers, this tax needs to be repealed immediately,” Coats said.