Coalition Letter in Opposition to the Pelosi Drug Pricing Plan

The Committee for Justice joined a group of 71 free-market organizations and activists, lead by Americans for Tax Reform, in opposing Speaker Pelosi's proposal to impose a 95 percent tax on pharmaceutical manufacturers. The letter can be found here or below:

Dear Members of Congress:

We write in opposition to the prescription drug pricing bill offered by House Speaker Nancy Pelosi that would impose an excise tax of up to a 95 percent on hundreds of prescription medicines.

In addition to this new tax, the bill imposes new government price controls that would decimate innovation and distort supply, leading to the same lack of access to the newest and best drugs for patients in other countries that impose these price controls.

Under Speaker Pelosi’s plan, pharmaceutical manufacturers would face a retroactive tax of up to 95 percent on the total sales of a drug (not net profits). This means that a manufacturer selling a medicine for $100 will owe $95 in tax for every product sold with no allowance for the costs incurred. No deductions would be allowed, and it would be imposed on manufacturers in addition to federal and state income taxes they must pay.

The alternative to paying this tax is for the companies to submit to strict government price controls on the medicines they produce. While the Pelosi bill claims this is “negotiation,” the plan is more akin to theft.

If this tax hike plan were signed into law, it would cripple the ability of manufacturers to operate and develop new medicines.

It is clear that the Pelosi plan does not represent a good faith attempt to lower drug prices. Rather, it is a proposal that would crush the pharmaceutical industry, deter innovation, and dramatically reduce the ability of patients to access life-saving medicines.

We urge you to oppose the Pelosi plan that would impose price controls and a 95 percent medicine tax on the companies that develop and produce these medicines.


Grover Norquist

President, Americans For Tax Reform

James L. Martin

Founder/Chairman, 60 Plus Association

Saulius “Saul” Anuzis

President, 60 Plus Association

Marty Connors

Chair, Alabama Center Right Coalition

Bob Carlstrom ​​​​​​​

President, AMAC Action

Dick Patten

President, American Business Defense Council

Phil Kerpen​​​​​​​

President, American Commitment

Daniel Schneider

Executive Director, American Conservative Union

Steve Pociask ​​​​​​​

President/CEO, The American Consumer Institute Center for Citizen Research

Lisa B. Nelson

CEO, American Legislative Exchange Council

Michael Bowman

Vice President of Policy, ALEC Action

Dee Stewart

President, Americans for a Balanced Budget

Tom Giovanetti​​​​​​​

President, Americans for a Strong Economy

Norm Singleton

President, Campaign for Liberty

Ryan Ellis

President, Center for a Free Economy

Andrew F. Quinlan​​​​​​​

President, Center for Freedom & Prosperity

Jeffrey Mazzella ​​​​​​​

President, Center for Individual Freedom

Ginevra Joyce-Myers

Executive Director, Center for Innovation and Free Enterprise

Peter J. Pitts

President, Center for Medicine in the Public Interest

Olivia Grady

Senior Fellow, Center for Worker Freedom

Chuck Muth ​​​​​​​

President, Citizen Outreach

David McIntosh

President, Club for Growth

Curt Levey​​​​​​​

President, The Committee for Justice

Iain Murray

Vice President, Competitive Enterprise Institute

James Edwards

Executive Director, Conservatives for Property Rights

Matthew Kandrach​​​​​​​

President, Consumer Action for a Strong Economy

Fred Cyrus Roeder​​​​​​​

Managing Director, Consumer Choice Center

Tom Schatz ​​​​​​​

President, Council for Citizens Against Government Waste

Katie McAuliffe​​​​​​​

Executive Director, Digital Liberty

Richard Watson

Co-Chair, Florida Center Right Coalition

Adam Brandon

President, Freedomworks​​​​​​​

George Landrith ​​​​​​​

President, Frontiers of Freedom

Grace-Marie Turner

President, Galen Institute

Naomi Lopez

Director of Healthcare Policy, Goldwater Institute

The Honorable Frank Lasee ​​​​​​​

President, The Heartland Institute

Jessica Anderson

Vice President, Heritage Action for America

Rodolfo E. Milani ​​​​​​​

Trustee, Hispanic American Center for Economic Research

Founder, Miami Freedom Forum