A new bill introduced by Senator Reed and Whitehouse would stop pharmaceutical companies from deducting the costs of their advertising from their federal taxes, a move that the office of Senator Reed says would put an end to what it calls “Big Pharma” deliberately increasing drug prices for consumers.
Under current law, pharmaceutical companies can deduct the cost of advertising expenses from their federal taxes, which the office of Sen. Jack Reed, D-R.I., says unfairly shifts the cost of advertising from taxpayers to consumers.
“Drug makers unhealthy addiction to direct-to-consumer advertising that bypasses doctors is costing taxpayers a fortune and contributing to higher health costs,” Reed said in a statement. “Consumers are sick of paying more because Big Pharma is trying to push the most expensive branded prescription drugs.”
The office of Senator Jack Reed says 553 prescription drugs were advertised directly to consumers from 2016 through 2018, with Medicare spending more than half of the $17.8 billion spent by pharmaceutical companies on those ads.
“Big Pharma should not receive tax breaks that allow them to raise prices on life-saving medications for consumers and families,” said Sen. Jeanne Shaheen, D-N. H.
“It’s well past time for Congress to step in to end these tax breaks and lower costs for everyday Americans,” Shaheen added.
Generative artificial intelligence (AI) assisted a What’sUpNewp journalist with the reporting included in this story.
