August 3, 2012

Pete Yonkman, Executive Vice President of Cook Medical, discusses the 2.3% excise tax on the manufacturing of medical devices set to begin in January 2013 as part of the health care reform law. Canton, Illinois is a text book example of a small Illinois community that is expected to be adversely impacted by the pending tax increase on medical devices. In May 2011, Cook Medical, a raw materials manufacturer, announced it was expanding its operations by opening a new plant in Canton. The Canton facility, which is now fully operational, has provided a much needed jolt to the local economy and the creation of 100 new jobs. However, with the pending tax increase on the products the facility manufacturers, such as highly specialized polytetrafluoroethylene (PTFE) tubing widely used by the medical community, there is concern that their ability to grow locally and reinvest in the Canton community will only become more restricted because of the pending new medical device tax.