The Center for Innovation and Free Enterprise Opposes the Pelosi Drug Pricing Plan

CIFE maintains it’s original position opposing House Speaker Pelosi’s drug pricing plan, H.R.3. CIFE recently signed on to the Americans for Tax Reform Coalition letter. The letter articulates the threats to the free market that Pelosi proposes in her plan. We believe that this legislation discourages companies from bringing life-saving medicines to market and punishes competition. Further, we know that there more suitable alternatives to heatlhcare reform, and we ask our lawmakers to seek a bipartisan solution. Patients do not need politics, and that is why 70 organizations, including CIFE have formally rejected Pelosi’s plan by signing onto the Americans for Tax Reform Coalition letter.

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, Campaign for Liberty

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

Mario H. Lopez – President, Hispanic Leadership Fund

Carrie Lukas – President, Independent Women’s Forum

Heather R. Higgins – CEO, Independent Women’s Voice

Merrill Matthews – Resident Scholar, Institute for Policy Innovation

Chris Ingstad – President, Iowans for Tax Relief

Sal Nuzzo – Vice President of Policy, The James Madison Institute

The Honorable Paul R LePage – Governor of Maine 2011-2019

Seton Motley – President, Less Government

Doug McCullough – Director, Lone Star Policy Institute

Mary Adams – Chair, Maine Center Right Coalition

Matthew Gagnon – CEO, The Maine Heritage Policy Center

Victoria Bucklin – President, Maine State Chapter – Parents Involved in Education

Charles Sauer – President, Market Institute

Jameson Taylor, Ph.D. – Vice President for Policy, Mississippi Center for Public Policy

The Honorable Tim Jones – Leader, Missouri Center-Right Coalition

Brent Mead – CEO, Montana Policy Institute

Pete Sepp – President, National Taxpayers Union

The Honorable Bill O’Brien, The Honorable Stephen Stepanek – Co-chairs, New Hampshire Center Right Coalition

The Honorable Beth A. O’Connor – Maine House of Representatives

The Honorable Niraj J. Antani – Ohio State Representative

Douglas Kellogg – Executive Director, Ohioans for Tax Reform

Honorable Jeff Kropf – Executive Director, Oregon Capitol Watch Foundation

Daniel Erspamer – CEO, Pelican Institute for Public Policy

Lorenzo Montanari – Executive Director, Property Rights Alliance

Paul Gessing – President, Rio Grande Foundation

James L. Setterlund – Executive Director, Shareholder Advocacy Forum

Karen Kerrigan – President and CEO, Small Business Entrepreneurship Council

David Miller & Brian Shrive – Chairs, Southwest Ohio Center-right Coalition

Tim Andrews – Executive Director, Taxpayers Protection Alliance

Judson Phillips – President, Tea Party Nation

David Balat – Director, Right on Healthcare – Texas Public Policy Foundation

Sara Croom – President, Trade Alliance to Promote Prosperity

Kevin Fuller – Executive Director, Wyoming Liberty Group