CQ TODAY PRINT EDITION
– TAXES
June 16, 2009 – 5:10 p.m.
Rangel: Eliminate Prescription Advertising Tax Break
By Richard Rubin, CQ Staff
The forthcoming House health care bill may use the tax code to take a shot at prescription drug advertising, Ways and Means Chairman Charles B. Rangel , Da?`N.Y., said Tuesday.
House tax writers are considering a $37 billion proposal that would remove the business-expense deduction that drug companies now can take for their advertising because, Rangel said, the commercials’ rapid-fire “mumble” about potential side effects is “wrong.”
“I go to the doctor and say, ‘Did you ever think about ordering this for me?’ If he says no, I don’t like him, because they promised me on TV that I [would] have no problems at all,” Rangel said of televised drug commercials.
He added, “Why didn’t you yell loud that [the drug] . . . could kill me as a side effect?”
He acknowledged that businesses would object to the suggestion. A spokeswoman for the Pharmaceutical Research and Manufacturers Association of America (PhRMA), which represents drug manufacturers, had no comment Tuesday.
The pharmaceutical advertising provision would pay for only a tiny piece of a bill that is expected to cost $1.2 trillion over 10 years. But it may come in handy as Ways and Means Democrats continue a series of meetings on their piece of the health bill and try to cobble together the money to pay for it.
Rangel said he hoped the committee would narrow its revenue-raising options by Friday, adding that sales taxes and a value-added tax have gotten some discussion.
“We’re almost to the point that at, the end of the week, we’ll be able to know what’s off the table and have more than enough revenue that we don’t have to use,” he said. “But we just have it out there, in case it’s more difficult to get to the [spending] cuts recommended by the president.”




Comments
Tip of my virtual hat to the Congressman. This type of advertising has aggravated me (as a consumer) for a long time.
As Neil Young once wrote: "Don't need no TV ad Tellin' me how sick I am Don't want to know how many people are like me Don't need no dizziness Don't need no nausea Don't need no side effects like diarrhea or sexual death Don't need no more lies" Taxpayers shouldn't be subsidizing these endless commercials that increase healthcare costs.
Right on! Of course, the biggest savings will not come from the additional taxes, but from less demand by consumers for stiffy pills, anti-hair loss meds, etc as well as, one hopes, physicians being more willing to use older, effective generic meds rather than the newest pill being pushed for the same thing with no proven additional benefit to justify the much higher price.
I'm sick to realize that the drug companies have been getting a tax break for their ads all this time -- but this really will be the death for broadcast news AND the cable news shows, especially if it might also eliminate the non-perscription male enhancer ads too.
I share Harriet's concerns. When I watch South Park all I see are endless commercials for Enzyte. If Bob gets pulled and Enzyte's sale go flaccid will that translate to deflated incomes for Trey and Matt too? Quelle horreur!
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