At the AMA annual meeting in Chicago June 13, delegates discussed an idea to discourage DTC ads: eliminate pharmaceutical companies’ ability to write off marketing costs as a federal tax deduction, according to HCP Live.
“We can’t prevent DTC ads under the First Amendment, but we could eliminate companies’ ability to write off DTC advertising [expenses],” said a Massachusetts delegate in support of the resolution, according to the report.
Under such a rule, the tax code would be changed to eliminate the deduction.
The controversial measure was immediately opposed by a New York delegate, according to the report.
“I don’t think we can impose our wishes on the IRS, it’s a valid business expense,” said Bob Frankel, MD, according to the report. He added, “Should we not allow ice cream ads, since ice cream may contribute to obesity? It’s unreasonable.”
A delegate from Florida also opposed the measure, saying, “We appreciate the concerns and we don’t like DTC advertising either, but we oppose the resolution as a no-win situation that would have negative fallout for the AMA.”
Read more about the debate surrounding DTC drug ads here.
More articles on finance:
Study finds ACA repeal would increase state spending by $68.5B: This and 3 more outcomes
S&P upgrades Norman Regional Health System’s rating to ‘BBB’
Fitch affirms Palomar Health’s ‘BB+’ rating
