Rep. Angie Craig Introduces Bipartisan Bill to Eliminate Tax Breaks for Pharmaceutical Companies

WASHINGTON, DC – U.S. Representative Angie Craig recently introduced a bipartisan bill to eliminate tax breaks for pharmaceutical companies on prescription drug advertising. The bipartisan No Handouts for Drug Advertisements Act would eliminate the tax deduction companies can claim for pharmaceutical marketing and promotional expenses related to advertising on television, radio, social media and other common platforms.

The bill was co-introduced by Reps. Greg Murphy (R-NC), Nick Begich (R-AK) and Hillary Scholten (D-MI).

“We shouldn’t be cutting taxes for Big Pharma – especially for spending on direct-to-consumer advertisements that may lead to overprescribing and massive profits for drug companies,” said Rep. Craig. “It’s time we start holding Big Pharma accountable and investing in lower health care costs for consumers.” 

In 2023, overall pharmaceutical expenditures in the US grew 13.6% compared to 2022, for a total of $722.5 billion. The U.S. Government Accountability Office found that nearly all direct-to-consumer (DTC) spending was on brand-name drugs, with about two-thirds concentrated on 39 drugs. The industry spent approximately $6 billion per year on U.S. DTC advertising.

The Campaign for Sustainable Rx Pricing estimates that prohibiting pharmaceutical advertising could increase federal tax revenues by $1.5 to $1.7 billion annually from 10 of the largest pharmaceutical companies operating in the U.S.

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