24.09.2009

Contact lenses escape tax in the US

Contact lenses escape tax in the US

By Adrian Galbreth

A member of the Democratic party in the US has backed down on a proposed tax that would have included contact lenses.

Max Baucus, finance committee chairman, had wanted to bring in a tax on medical device products that cost $100 (£61)or less.

He changed his mind on the proposal but is still placing an annual levy of $4 billion (£2.44 billion) on the medical devices sector, according to the Associated Press.

Costlier products such as hearing aids will also still be taxed.

President of Avalere Health Dan Mendelson told the news source that Mr Baucus was "trying to avoid the perception that the middle class are going to be taxed".

The proposal had been dubbed the "tax on Q-tips" in the US.

Mr Baucus represents the state of Montana, having been elected to its state legislature in 1973, and is a graduate of Stanford Law School.

In 1971 he started a law firm in Missoula.

by Adrian Galbreth


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