Drug Ad Tax Deductions Saved After Rangel Committee Does U-Turn

(MoneyWatch)  House Ways and Means Committee chairman Charles Rangel's insistence that tax deductibility on drug advertising be ended turned out to be more bluster than principle. Ad Age reports that the draft for health-care reform outlined by Rangel's committee keeps the federal tax break for prescription-drug advertising:

In lieu of eliminating the deduction to raise funds, the committee proposed a surtax on high-income Americans -- individuals earning at least $280,000 in adjusted gross income and couples earning more than $350,000.

BNET readers know that this is a dramatic U-turn from Rangel's position in June, when he said he wanted to end tax deductions on DTC. He told Bloomberg:

One thing that's not off the table is you can pick up $37 billion knocking out the deduction for advertising.

And the Democrat from New York told CQ Politics:

-- because, Rangel said, the commercials' rapid-fire "mumble" about potential side effects is "wrong."

"I go to the doctor and say, 'Did you ever think about ordering this for me?' If he says no, I don't like him, because they promised me on TV that I [would] have no problems at all," Rangel said of televised drug commercials.

He added, "Why didn't you yell loud that [the drug] . . . could kill me as a side effect?"

So, barring a miracle, that's that. The drug industry gets to keep one of the most controversial, least-useful aspects of its business. But then we knew that Big Pharma was playing to win didn't we?

Image from New York Post gallery of Rangel's beach villa in the Dominican Republic.

• Previously:
• Doctors May Not All Be Big Pharma's Friends in Healthcare Reform Debate
• As Lilly, Pfizer Lobby Against Obama Healthcare Plan, Their Execs Enjoy Gold-Plated Coverage
• Pharma Lobbying Money: Who's Spending What Fighting Healthcare Reform
• House Considers Ending Tax Benefit on Rx Drug Advertising; Rangel Eyes $37 Bil. for Health Reform
• Lilly, Pfizer and AstraZeneca Jockeying for Position on Healthcare Reform
• Lilly CEO Lechleiter and PhRMA's Boogeyman: a "Government-Run Plan"
• Claim: AstraZeneca CEO Brennan's Pay Too High; Spends Too Much on Lobbying
• Drug Makers Gave Lobbyists an Xmas Gift -- Millions More to Lobby Obama Administration
• PhRMA v. Obama: Battle Lines Drawn
• Q&A: How the Drug Business May Lose the Right to Advertise
• Obama Already Turning Into a Nightmare for Big Pharma
• Pharma Election Money Backs Obama