PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Pelosi Drug Bill H.R. 3: Harmful to Entrepreneurs, Innovation and Consumers

By at 11 December, 2019, 10:31 am

Dear Member of the U.S. House of Representatives:

The Small Business & Entrepreneurship Council (SBE Council) strongly opposes the “Lower Drug Cost Now Act of 2019,” H.R. 3. The legislation undermines and erodes innovation and investment, and in the end would harm consumers and America’s global leadership in the bio-pharmaceutical sector.

The partisan H.R. 3 is a missed opportunity and harmful to the small companies that dominate the bio-pharmaceutical sector. SBE Council and our members urge House members to pursue bipartisan solutions – such as the many common-ground provisions in H.R. 19, the “Lower Costs, More Cures Act” – which would actually address the problem of high costs.

The price controls and taxes (an excise tax as high as 95%) embedded in H.R. 3 would disincentive risk-taking and prevent the innovative breakthroughs that save lives. Small innovative companies are responsible for the lion’s share of these groundbreaking innovations, and H.R. 3 will erect significant barriers to their work. Among U.S. pharmaceutical and medicine manufacturing firms, 57% have less than 20 workers and 79% have less than 100 workers. This critical industry is all about risk-taking entrepreneurs. They are passionate about saving lives. Policies should encourage this noble and critical work, not punish or impede it.

H.R. 3 would remove drugs from the market – as many as 100 critical drugs, according to the Council of Economic Advisers – reduce life expectancy, and raise prices. Massive government intervention and a 95% potential tax on drugs are not sensible solutions.

Intrusive government policies, such as those included in H.R. 3, always produce distorted and harmful results: higher costs, limited and rationed access, and stagnant innovation.

We urge the U.S. House to pursue bipartisan, common-ground and effective solutions to address high drug costs. Please support entrepreneurs and small businesses and oppose H.R. 3.

Sincerely,

Karen Kerrigan, President & CEO

 

News and Media Releases