The 2.3% tax imposed on medical devices was part of the Health Care and Education Reconciliation Act of 2010 (HCERA), signed by President Barack Obama on March 30, 2010. In section 1405, HCERA applies an excise tax of 2.3% on the first sale of certain medical devices. The 2.3% tax is a tax on revenues, not a tax on profits and should not be confused as such. Consequently, for a company with a 2% profit margin this tax would be greater than its profits.
