Big pharma does not need more funding.
Meller and Ahmed ’19 (Abbey Meller and Hauwa Ahmed, “How Big Pharma Reaps Profits While Hurting Everyday Americans”, American Progress, Available online: https://www.americanprogress.org/article/big-pharma-reaps-profits-hurting-everyday-americans/#:~:text=But%20the%20issue%20goes%20beyond,skyrocketing%20price%20of%20the%20drug, 8-30-2019, Accessed 7-26-2024)//ILake
Pharmaceutical companies also benefit from research and development tax credits. The federal R&D tax credit was first introduced in 1981 to encourage private sector investment in pioneering research.21 This tax credit is available to businesses that attempt to develop new, improved, or technologically advanced products or trade processes.22 In 2015, former President Barack Obama signed into law the Protecting Americans from Tax Hikes Act23, which made these tax credits permanent and extended them to small businesses and startup companies.
Pharmaceutical industries also receive a tax deduction for their marketing and advertising expenses. According to a report in the Journal of the American Medical Association, “From 1997 through 2016, medical marketing expanded substantially, and spending increased from $17.7 to $29.9 billion,24 with direct-to-consumer advertising for prescription drugs and health services accounting for the most rapid growth, and pharmaceutical marketing to health professionals accounting for most promotional spending.” The report also found that from 1997 through 2016, “the number of advertisements … increased from 79,000 (including 72,000 television commercials) in 1997 to 4.6 million (663,000 television25 commercials) in 2016.”