Shaheen bill would stop drug company ad tax deductions
CONCORD, N.H. (AP) — New Hampshire Democratic Sen. Jeanne Shaheen has introduced a bill that would prohibit pharmaceutical companies from claiming tax deductions for consumer advertising expenses.
Under current law, drug manufacturers are allowed to deduct the cost of advertising expenses from federal taxes. A news release from Shaheen’s office Thursday said those advertising expenses have more than quadrupled over the past two decades, rising from $1.3 billion in 1997 to $6 billion in 2016.
Shaheen said the aggressive advertising also increases demand and allows drug companies to increase prices. She said taxpayers shouldn’t be subsidizing the ads.
The bill is co-sponsored by fellow Democratic Sen. Maggie Hassan.