Republicans, In Search Of Revenue, May Target Orphan Drug Tax Break
The tax credit is part of a popular plan to encourage the development of drugs for rare disease. But ending it could save the government an estimated $54 billion over the next decade
The New York Times:
Congress Weighs Repeal Of Tax Credit For Rare Disease Drugs
A decades-old tax credit designed to spur cures for rare diseases has been so successful that it’s now become a target in the House Republican tax plan. The proposal under consideration would end the tax breaks for development of what are called orphan drugs. Ending the credit used by big and small drug companies could save the government an estimated $54 billion over the next decade, an effort to help offset some of the anticipated losses in revenue if other Republican tax cut provisions become law. (Thomas and Kaplan, 11/8)
Stat:
Trump Wants To Cut Big Pharma’s Tax Bill, But What Are Drug Makers Actually Paying?
Pharma has had a rocky relationship with President Trump since inauguration, but the two agree on at least one thing: Corporate taxes are too high. And yet the nation’s biggest drug makers aren’t paying anywhere near the top corporate tax rate Trump, and congressional Republicans, hope to slash. (Garde, 11/8)
In other news on the GOP tax overhaul —
The New York Times:
Ending Medical Tax Break Could Be A ‘Gut Punch’ To The Middle Class
Suzanne Hollack tried to care for her husband at home after he was diagnosed with frontotemporal dementia at age 69. But it got to the point where she couldn’t take a shower for fear he would stray out of the house. So 18 months ago, she moved him to a memory care community near their home in Scottsdale, Az., which like most long-term care, is not covered by Medicare. That, plus his other medical expenses, cost the couple $90,000 last year. (Zernike and Goodnough, 11/8)
