President Joe Biden greets House Speaker Nancy Pelosi, D-Calif., Friday, July 30 2021, in the Oval Office of the White House. (Official White House Photo by Adam Schultz)

Joe Biden, Nancy Pelosi, and Bernie Sanders’ $3.5 trillion spending orgy includes a poison pill — almost literally.  

The Congressional Budget Office estimates that H.R. 3 (AKA the Lower Drug Costs Now Act) would help “pay for” this fiscal incontinence by squeezing $581.6 billion from the pharmaceutical industry over the next 10 years. 

More than just a tax on “evil, drug companies,” this measure would blackmail this sector, chop into its bottom line, and torpedo research and development. This would mean more ailments and earlier deaths for everyday Americans. In other words, just another day at the office for Democrats. 

H.R. 3 would force pharmaceutical manufacturers to haggle over prices with federal functionaries. But this is not just bargaining between buyers and sellers. H.R. 3 defines “negotiation” as Washington bureaucrats dictating an amount that they feel like paying for a drug, based on overseas price controls mandated via socialized medicine. Those fixed prices would regulate all sales – to Medicare, Medicaid, and private insurers.  

And what if a drug company resists this new policy? That’s when federal extortion kicks in. 

Pharmaceutical firms that will not swallow Uncle Sam’s prices would face taxes on gross revenues (not net profits) that start at 65 percent. But that tribute rises every 90 days that any such enterprise refuses to be bludgeoned. Ultimately, as Biden said at the White House on August 12: “It means drug companies would have to sell their drugs to all distributors at the Medicare price or face up to a 95 percent excise tax.”  

Applied to dating, this is akin to: “Let’s spend the night together. If not, you’re free to go home naked — but you can keep your shoes on.” H.R. 3 must have been written by Democrat mega-donor Harvey Weinstein. 

This Left-wing scheme would rip huge chunks out of drug companies’ hides. CBO forecasts that “Negotiations would reduce prices by 57 percent to 75 percent, relative to current prices.” Of course, even a 75 percent sales drop beats a 95 percent cut. This helps explain the Leninist levels of this proposed new tax. 

Healthcare consultancy Avalare predicts that, across this industry, H.R. 3’s price controls could affect up to 550 drugs and slash drugmakers’  aggregate revenues by $1.65 trillion within five years.  

So, what? If pharmaceutical CEOs must postpone their new yacht purchases or buy slightly smaller ski chalets, they will survive.  

If only the world were so cartoonishly simple. 

Punching the drug industry in the mouth gives regular patients bloody lips. If H.R. 3 slices drug companies’ incomes, they will have less money to create new and better drugs.  

“The proposals that we’re seeing from Congress will devastate this industry,” said Merck chairman Kenneth Frazier. “Our ability to fund R&D inside Merck will be reduced by almost half.” 

This means emptier medicine chests. 

University of Chicago professor Tomas Philipson expects H.R. 3 to abort between 167 and 342 new drugs by 2039.  

A vaccine against the common cold? A pill that stops miscarriages? A cure for prostate cancer? Gummies that reverse Alzheimer’s? H.R. 3 could entomb such inventions in their test tubes. 

“If the government can pick any arbitrarily low price it wants, and prevent a company from saying ‘no’ by threatening it with a ruinous 95 percent tax, then I could not justify any biomedical R&D investment to my investors,” said financier Peter Kolchinsky. “In other words, we should expect a near total collapse of R&D funding.” 

Among other innovations, pharmaceutical companies have created drugs such as Avastin and Gleevec that — for many — have transformed cancer from a death sentence into a temporary headache. Descovy and Truvada are, essentially, AIDS-vaccine pills. And President Donald J. Trump’s Operation Warp Speed inspired Pfizer, Moderna, and Johnson & Johnson to deliver COVID-19 inoculations in a record 12 months. 

The cure-crushing H.R. 3 is how Democrats say thank you for these miracles and threaten unseen breakthroughs.  

Deroy Murdock is a Manhattan-based Fox News Contributor, a contributing editor with National Review Online, and a senior fellow with the London Center for Policy Research.

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LISTEN UP…The BLESSING of GOD is STILL with PREZ TRUMP. HE is GOD’S KING DAVID. TRUMP Shall Become a TRUMPET. From SamuraiQueen. 😄😄😄

4 months ago

God bless you, lady, but let’s hope that in 2022 there will be something of America left to save. Biden is a disaster: ‘there’s no fool like an old fool.’ How about a wicked, corrupt, self-serving old fool?

4 months ago

They’ve declared war on constitution and us, WHEN DO WE RETALIATE?

4 months ago

As much as I hate the drug companies I must say this HR3 bill is beyond ridiculous and another example of the Biden dictatorship management style.
Biden should have been taken out back and treated for treason awhile ago followed closely by Harris, pelosi, etc., etc. but RINO McConnell got no balls.

4 months ago

With the dumbocraps,u just can’t fix stupid, they just continue the same stupid mistakes, and expect a different out come,it’s pathetic,always trying to fleece the American citizen, when were barely making it, before this hidenbiden nightmare began. This incompetent, embarrassmenrt, needs to be removed for totally failing to do his job, and creating crisis after crisis.

4 months ago

Tax the Hell Out of Drug Companies!!!!

4 months ago
Reply to  Kbar

Obviously Kbar did not read the article.

4 months ago

You ride with devil. You get burned by the devil!

4 months ago

Most of the new junk does more harm than good anyway. When there is an entire page of bad side effects, that’s not progress. They should work on making what we already have less lethal.

4 months ago

There are drug companies good and bad, more ethical and less ethical. But this variety of legislation stabs the pharma industry in the back. ‘You cannot a silk purse from a sow’s ear make.’ Drug development is a tricky business.For whatever reasons, 98% of R&D compounds never reach the market. The company must make a profit somehow to recoup R&D losses. With rampant price ceilings, there goes drug development and oops! There goes human health. And more and more of our drugs will be manufactured in nations like India and China. Is THIS what we want?

4 months ago
Reply to  Jawad

It’s not “will be” manufactured in China, it’s ALREADY being manufactured there. But the drug manufacturers are SO money hungry, that they’re pushing to get their brand on the market…heck with what happens afterwards to those who take it! I used to work in the medical field, and have noticed in the past year or two that the people today who are among those who refuse to take the Covid vaccine are NURSES AND DOCTORS!! What does that tell you??

4 months ago

This will completely open the door to India and China to make all of our medications. Currently medication that was made in the US is being farmed out to both countries. Medication that I take is currently being made in India. I have had allergic reactions to some of being it compounded with unknown ingredients. The doctors and drugist no longer know what is in the medications they prescribe. A friend was taking a prescription pain killer and it hadn’t been helping her. She had a friend who works in a lab test it and he found it had less than half the pain killing agent in it that was prescribed. Thinking it couldn’t be right he had a friend test it and he came up with the same results. She was paying premium prices for a drug that was as half the strength prescribed. Do we really want medication from India and China?

Last edited 4 months ago by Dorinda