Pharmaceutical Companies Avoiding Taxes Get Scrutiny From House

The leading tax-writing body in the House is investigating pharmaceutical tax write-offs, including charitable donations, the financial benefits of certain drug approval pathways, and how the 2017 tax law affected drug prices.

Pharmaceutical companies are abusing the U.S. tax system by making “taxable income disappear overseas,” Rep. Lloyd Doggett (D-Texas), chairman of the House Ways and Means health subcommittee, said at a hearing Wednesday. Doggett is investigating how companies “avoid taxes” and use patient assistance programs to “steer patients to high cost drugs and make insurers pay the price,” driving up deductibles and premiums, he said.

Congress has debated for ...