Should Tax Breaks for Prescription Drug Ads be Eliminated? (S. 2478)
Do you support or oppose this bill?
What is S. 2478?
(Updated April 18, 2021)
This bill — the End Taxpayer Subsidies for Drug Ads Act — would prohibit tax deductions for expenses related to direct-to-consumer advertising of prescription drugs. “Direct-to-consumer advertising” would be defined as any dissemination of an ad related to a prescription drug targeted to the general public.
Argument in favor
Drug companies’ advertisements shouldn’t be tax deductible, and this bill ends the taxpayer subsidy of prescription drug ads.
Argument opposed
The tax code allows companies to deduct advertising expenses and it’s wrong to deny that deduction for a specific industry.
Impact
Drug companies; and the federal government.
Cost of S. 2478
A CBO cost estimate is unavailable.
Additional Info
In-Depth: Sponsoring Sen. Claire McCaskill (D-MO) introduced this bill to end taxpayer subsidies for prescription drug advertisements:
“Drug companies have too much influence in Washington. So it figures we are one of the only nations in the world that allows both advertising of prescription drugs to consumers and allows those ads to be subsidized by taxpayers. I’m determined to fight these high drug prices and a good first step would be to stop subsidizing their ads for drugs that must be prescribed by a doctor. Too many drug companies are spending more on sales and marketing than on research and development. And Missourians are tired of paying for it.”
This legislation has the support of two cosponsors in the Senate, both of whom are Democrats.
Media:
Summary by Eric Revell
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