Former comic and current U.S. Senator Al Franken has proposed legislation (S.1763) that would eliminate the tax deductibility of advertising and marketing expenses by prescription drug companies.
According to a report in Finance and Commerce, this tax increase would amount to $3.5 billion annually.
Senator Franken is looking to help pay for a misguided and costly big government health care scheme by eliminating deductions for standard expenses by businesses – large and small – that are critical to the health of Americans and people around the world.
For good measure, marketing and advertising businesses would take hits as well.
Senator Franken had the right idea in opposing proposed new taxes on medical device manufacturers. So, why is he willing to raise taxes on pharmaceutical firms? After all, both medical device and medicine manufacturers are in the business of making products that can save and enhance people’s lives.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
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