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senate Bill S. 2478

Should Tax Breaks for Prescription Drug Ads be Eliminated?

Argument in favor

Drug companies’ advertisements shouldn’t be tax deductible, and this bill ends the taxpayer subsidy of prescription drug ads.

Judy's Opinion
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03/31/2018
Big Pharma places ads on TV & each segment costs millions of dollars to them. We are giving them tax breaks for this? Medicine is way too costly and we give our tax money to them for selling a product. This is absolutely insane. Checks and balances on this industry are long overdue.
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Teresa's Opinion
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03/31/2018
They get tax breaks on top of over charging people for their prescription drugs. That is wrong.
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FreeAmerica's Opinion
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03/31/2018
Placing advertisements is a luxury business wise and not critical to the operation of the companies (which is what a tax break is meant for). There’s companies that aren’t allowed to advertise on tv at all and big pharma has proved themselves more harmful with their products every year. End their ability to get a tax deduction for advertising.
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Argument opposed

The tax code allows companies to deduct advertising expenses and it’s wrong to deny that deduction for a specific industry.

James's Opinion
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03/31/2018
As much as I loathe drug companies, Either all advertisers can't deduct or all can, the only fair way, plus with this factored in, we all will pay more for the drugs, at the counter, they are not about to lose one cent of profit !! This is a Democratic Bill, it will never pass, as the Republicans are in bed with NRA & Big Pharma
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Jennifer 's Opinion
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03/31/2018
I was about to ask my Reps to vote yes on this, until I read all the details. Although, I’m no big fan of BigPharma, advertising is a legitimate expense for any business. Framing this bill as a “subsidy,” is dishonest advertising itself. It is not the Federal govn’t’s job to pick winners and losers—remember Obama subsidizing all the “green” companies with our tax dollars (BTW...many went under)? Unless the govn’t ends advertising as a tax write-off for ALL businesses, then I say, “NO,” on this piece of legislation.
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TuckerWantsLiberty's Opinion
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04/01/2018
What kind of Orwellian nonsense turns a tax break into "Taxpayer Subsidy"? That burden isn't passed on to taxpayers. It's sold to creditors because you idiots spend the money even though you don't have it. Don't remove tax breaks - expand them, and shrink spending to match. Their money isn't yours, so don't steal it.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Finance
    IntroducedMarch 1st, 2018

What is Senate Bill S. 2478?

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.

Impact

Drug companies; and the federal government.

Cost of Senate Bill S. 2478

A CBO cost estimate is unavailable.

More Information

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

(Photo Credit: Kenishirotie / iStock)

AKA

End Taxpayer Subsidies for Drug Ads Act

Official Title

A bill to amend the Internal Revenue Code of 1986 to deny the deduction for advertising and promotional expenses for prescription drugs.

    Big Pharma places ads on TV & each segment costs millions of dollars to them. We are giving them tax breaks for this? Medicine is way too costly and we give our tax money to them for selling a product. This is absolutely insane. Checks and balances on this industry are long overdue.
    Like (64)
    Follow
    Share
    As much as I loathe drug companies, Either all advertisers can't deduct or all can, the only fair way, plus with this factored in, we all will pay more for the drugs, at the counter, they are not about to lose one cent of profit !! This is a Democratic Bill, it will never pass, as the Republicans are in bed with NRA & Big Pharma
    Like (35)
    Follow
    Share
    They get tax breaks on top of over charging people for their prescription drugs. That is wrong.
    Like (38)
    Follow
    Share
    Placing advertisements is a luxury business wise and not critical to the operation of the companies (which is what a tax break is meant for). There’s companies that aren’t allowed to advertise on tv at all and big pharma has proved themselves more harmful with their products every year. End their ability to get a tax deduction for advertising.
    Like (31)
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    Share
    Yes! Absolutely! Drug companies should pay taxes for their advertisements like normal companies. However, I think direct-to-consumer advertising should be banned outright. Doctors should be the ones to inform their patients about these drugs, not the drug companies themselves who are just looking to make money.
    Like (29)
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    I was about to ask my Reps to vote yes on this, until I read all the details. Although, I’m no big fan of BigPharma, advertising is a legitimate expense for any business. Framing this bill as a “subsidy,” is dishonest advertising itself. It is not the Federal govn’t’s job to pick winners and losers—remember Obama subsidizing all the “green” companies with our tax dollars (BTW...many went under)? Unless the govn’t ends advertising as a tax write-off for ALL businesses, then I say, “NO,” on this piece of legislation.
    Like (20)
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    These scumbag pharma companies shouldn't be getting any tax breaks, especially if they've been found guilty of manufacturing toxic drugs that have caused numerous deaths. If anything they should be put out of business and heavily fined. Look what happened to alcohol and tobacco companies.
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    No private business should be subsidized by government.
    Like (17)
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    Why is this even a question? Of course!
    Like (15)
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    Other than because of lobbyists, how is this even a thing??
    Like (14)
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    All tax breaks for pharmaceutical companies should be eliminated.
    Like (12)
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    What kind of Orwellian nonsense turns a tax break into "Taxpayer Subsidy"? That burden isn't passed on to taxpayers. It's sold to creditors because you idiots spend the money even though you don't have it. Don't remove tax breaks - expand them, and shrink spending to match. Their money isn't yours, so don't steal it.
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    I can’t even believe this is a thing! Of course advertisements should be taxed!
    Like (10)
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    Drug companies make so much money on drugs here in the US that they shouldn’t be able to deduct anything. Drugs and alcohol & guns shouldn’t be advertised on TV anyway. At least with no deductions we get back part of the excessive amounts of money they charge us for meds. Course with Trump spending all our money on 110+ golf trips, a stupid wall that should never get started, and he & all his family & appointees are milking the country for all they are worth we won’t see any of it.
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    Given the new lowered tax rates on businesses this is a tax loophole that should be eliminated.
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    Big pharma is the most exploitive industry in America- and that’s saying something. The only things they should be getting tax breaks for are peer-reviewed research and giving medicine away. I’m a voter in Ohio’s 12th congressional district and I support this bill.
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    Advertising should not be a tax break for anything especially for prescription drugs.
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    Yes why are taxpayers paying for this.
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    Typical Democrat scheme of using false language to push through a crap bill. It’s not a subsidy, it’s a standard tax deduction for the cost of doing business. You can’t single out one industry because you don’t like their business model.
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    Tax breaks for any FOR-PROFIT companies should be eliminated.
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