BioCentury
ARTICLE | Politics & Policy

BayBio lobbying against PhRMA tax

September 24, 2009 12:42 AM UTC

BayBio, a trade association representing northern California life sciences companies, is lobbying Congress to reject proposed taxes on drug and medical device manufacturers and importers that are part of the healthcare legislation the Senate Finance Committee is debating this week. The America's Healthy Future Act, sponsored by Senate Finance Committee Chairman Max Baucus (D-Mont.), includes a $2.3 billion annual tax on drug manufacturers and importers, assessed as a proportion of U.S. government market share (See BioCentury, Sep. 21, 2009).

The drug tax was agreed by the Pharmaceutical Research and Manufacturers of America as part of an $80 billion package of discounts, rebates and taxes that will be applied to healthcare expansion. Baucus announced Tuesday he had dropped a proposed $750 million annual tax on laboratory services. The Advanced Medical Technology Association is adamantly opposing the proposed $4 billion annual tax on devices. The California Healthcare Institute wrote to Sen. Dianne Feinstein (D-Calif.) last week protesting the device tax, but was silent on the drug tax. ...