Speaker Nancy Pelosi on Thursday released a much-anticipated plan detailing House Democrats’ ideas to change the way people get prescription drugs. At the heart of the plan is a retroactive 95% tax on up to 250 of the most common medicines. The only way out of paying this tax is if the drug becomes subject to strict government price controls and price caps. The House is expected to vote on the plan this fall.
This “Pelosi Medicine Tax” could apply to the 250 most popular prescription drugs in the country and must apply to at least 25 of them. The tax is not on profits from the sale of the drug, but on the gross receipts from the sale. For example, if a medicine is sold for $100, a tax of $95 is owed, regardless of the cost of selling the drug.
House Republicans will vigorously oppose this 95% Pelosi Medicine Tax. By imposing a 95% tax on the drugs taken by seniors, veterans, and women, Pelosi has put Democrats in a very difficult position. They are going to be forced to explain to their constituents why they support slapping a 95% tax on their cholesterol drugs, their high blood pressure medication, their glaucoma treatments, and their insulin.