Nadler Pushes to End Tax Breaks for Pharmaceutical Companies
Washington, DC, February 15, 2011
Today, Congressman Jerrold Nadler (D-NY) re-introduced the Say No to Drug Ads Act, a bill that would end tax perks to pharmaceutical companies for their direct-to-consumer advertisements. In 2007 alone, the pharmaceutical industry spent more than $4.7 billion on direct-to-consumer advertising. By creating a demand for their drugs, the pharmaceutical companies are able to keep prices artificially high, steering consumers – and physicians – away from generic versions of drugs. The Say No to Drug Ads Act, first introduced by Nadler in 2002, would help consumers and doctors make more informed choices in selecting from available medications.
“There is absolutely no reason for the federal government to provide major tax breaks to pharmaceutical companies creating advertisements for their own financial enrichment,” said Nadler. “It’s bad enough that TV drug ads mislead consumers and tout benefits of high-priced drugs without properly conveying the risks, but the drug companies don’t need extra subsidies to do so. My legislation would end this undeserved perk for the industry, while generating billions of dollars to support much more essential health care programs.”
According to the Kaiser Family Foundation, 91% of Americans say they have seen a commercial or read an advertisement about a brand-name drug, and eight in ten doctors reported being asked by patients about diseases and medications that were advertised on television.
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