No Tax Breaks for Drug Ads Act is legislation that would prohibit pharmaceutical drug manufacturers from claiming tax deductions for expenses on advertising directly to consumers.
Under current law, drug manufacturers are allowed to deduct the cost of advertising expenses from federal taxes, which results in steeper drug prices.
U.S. Sen. Tim Kaine of Virginia, who is a member of the Senate Health, Education, Labor and Pensions (HELP) Committee, alongside U.S. Sen. Jeanne Shaheen of New Hampshire and 16 U.S. Senate colleagues introduced the legislation.
“As a member of the Senate Health, Education, Labor and Pensions Committee, lowering prescription drug costs for Virginians is one of my top priorities. Passing the Inflation Reduction Act was a major step toward that goal, but there’s more work to do,” Kaine said. “Ending the practice of giving drug companies tax breaks for advertising — which leads to higher drug prices — is a commonsense reform that can help us build on the progress we’ve made.”
Kaine has long fought to lower prescription drug costs. Last year, he introduced the bipartisan Help Ensure Lower Patient (HELP) Copays Act to protect patients from harmful insurance and Pharmacy Benefit Manager (PBM) practices that raise out-of-pocket drug costs. He also introduced bipartisan legislation to lower drug costs and level the playing field for patients by prohibiting PBMs from making more money on high-cost drugs than they do from lower-cost drugs. Kaine also voted for the Inflation Reduction Act, which passed in the Senate by one vote, to cap the cost of insulin to $35 per month for most patients and lower health care costs for thousands of Virginians.
U.S. Rep. Elissa Slotkin of Michigan introduced a companion bill in the House of Representatives.
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Rebecca Barnabi
