Curse Those Side Effects

I have written before on this blog about how I hate those prescription drug commercials on television; you know, the ones with the bright colors and pretty music and paid actors saying what a wonderful drug this is, oh, but it does have some unpleasant side effects, like warts, constipation, and death. Those commercials.

Well, the current Democratic Congress thinks it can wrangle $30+ billion out of those drug companies by altering the Internal Revenue Code to disallow companies deductions for advertising prescription drugs to the general public. As much as I hate those commercials, and I really do, I don't think I can agree with this proposal.

It is not that I have any love for the big drug companies. I know that for years they have been producing drugs in other countries and using creative bookkeeping to shelter the huge profits they make from the IRS. Maybe Congress should deal with that.

But every company is allowed to deduct advertising expenses. Advertising is a cost of doing business. It would not be fair to deny this deduction to one industry, even though that industry seems to be the most obnoxious in its advertising.

There are also potential free speech issues involved in this proposal. Companies do have a basic right to publicize their products. The media does have the basic right to make income from advertising products and services. This proposal may stomp on these rights.

Instead of changing the IRS code to disallow legitimate deductions, maybe Congress should start figuring out how to collect all those tax dollars drug companies have sheltered in overseas production. Some claim that about 60% of all prescription drug sales are in the United States, but the companies pay taxes on a much lower percentage.

Congress is desperate to find ways to fund President Obama's extremely expensive health care reform. But in seeking a prescription to ease their discomfort, they just might find that the side effects are worse than warts or constipation. It just might spell the death of free speech, at least to one industry.

I would rather use my channel flipper to avoid the drug commercials than to have Congress violate any one's right to free speech.