Big Pharma Under Fire: A Taxing Debate in the Senate
June 19, 2025, 10:16 pm
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The Senate floor is heating up. Two Democratic lawmakers, Sen. Elizabeth Warren and Rep. Jan Schakowsky, are shining a spotlight on the pharmaceutical giants. Pfizer, Johnson & Johnson, Merck, AbbVie, and Amgen are in the crosshairs. The issue? Their shockingly low tax bills. Despite raking in billions, these companies have managed to pay little to nothing in federal taxes. The lawmakers are questioning whether these corporations support extending tax cuts that benefit them, all while Americans face sky-high drug prices.
The crux of the matter lies in a tax loophole that allows these companies to shift profits to offshore subsidiaries. Countries like Ireland and Bermuda have become havens for U.S. corporations seeking to dodge taxes. This practice was made easier by the 2017 Tax Cuts and Jobs Act, a law intended to curb corporate tax avoidance but instead created new incentives for companies to move profits overseas. Warren and Schakowsky argue that this loophole is a glaring example of how the tax code favors wealthy corporations over everyday Americans.
The lawmakers sent letters to each pharmaceutical company, demanding answers. They want to know how much these companies have spent on lobbying Congress to maintain this tax loophole. For instance, Johnson & Johnson spent over $150,000 lobbying on international tax issues in late 2024 alone. The stakes are high. If the GOP's multitrillion-dollar tax and spending package passes as is, it could make many provisions of the 2017 tax act permanent. This includes significant cuts to programs for low-income Americans, such as Medicaid.
The Senate is now the battleground. Republicans hold the majority, making it difficult for Democrats to eliminate the offshore tax loophole. Yet, the Democrats are rallying public opposition against parts of the legislation. They argue that expanding tax loopholes for Big Pharma while these companies profit off Americans is a slap in the face. The Council on Foreign Relations estimates that reforming the offshore tax loophole could raise at least $100 billion over the next decade.
The pharmaceutical industry has faced scrutiny before. A recent report accused Pfizer of executing what some called the largest tax-dodging scheme in the industry’s history. The company allegedly used a tactic known as “round-tripping” to avoid paying U.S. income tax on $20 billion in domestic drug sales in 2019. Despite these allegations, Pfizer claims it paid $12.8 billion in U.S. taxes over four years.
As the debate unfolds, the Trump administration is considering imposing tariffs on pharmaceuticals to encourage domestic manufacturing. Trump has criticized countries like Ireland for luring drugmakers with low tax rates. The pressure is mounting on pharmaceutical companies to justify their tax practices while they continue to charge Americans exorbitant prices for medications.
Meanwhile, in a different corner of the pharmaceutical world, Celltrion has made headlines with the FDA's approval of a new presentation of its biosimilar drug, STEQEYMA. This approval expands dosing options for pediatric patients with plaque psoriasis and psoriatic arthritis. The new 45mg/0.5mL solution in a single-dose vial allows for greater flexibility in treatment, particularly for younger patients weighing less than 60kg.
Celltrion's STEQEYMA now matches all dosage forms of its reference product, STELARA. This approval is a significant step for the company, which aims to broaden access to innovative treatments for chronic inflammatory conditions. The FDA's decision was based on a phase III study demonstrating that STEQEYMA is highly similar to its reference product, with no clinically meaningful differences in safety and efficacy.
The approval reflects a growing trend in the pharmaceutical industry toward biosimilars. These drugs offer more affordable alternatives to expensive biologics, potentially easing the financial burden on patients and healthcare systems. Celltrion's commitment to expanding access for all patient populations, including children, is commendable. The company is positioning itself as a leader in the biosimilar market, with a focus on immunology and other therapeutic areas.
As the Senate debates the future of tax policy and pharmaceutical pricing, the contrast between the actions of Big Pharma and the needs of everyday Americans is stark. The calls for accountability grow louder. Lawmakers are demanding transparency and fairness in a system that often seems rigged in favor of corporate interests.
The stakes are high. Will Congress take action to close the tax loopholes that allow pharmaceutical companies to evade their fair share? Or will the industry continue to thrive at the expense of American consumers? The answers will shape the future of healthcare in the United States.
In the end, the battle over pharmaceutical taxes and pricing is not just about numbers. It’s about people. It’s about families struggling to afford medications. It’s about ensuring that corporations contribute their fair share to the society that enables their success. As the debate rages on, one thing is clear: the American public is watching. The outcome will resonate far beyond the Senate floor.
The crux of the matter lies in a tax loophole that allows these companies to shift profits to offshore subsidiaries. Countries like Ireland and Bermuda have become havens for U.S. corporations seeking to dodge taxes. This practice was made easier by the 2017 Tax Cuts and Jobs Act, a law intended to curb corporate tax avoidance but instead created new incentives for companies to move profits overseas. Warren and Schakowsky argue that this loophole is a glaring example of how the tax code favors wealthy corporations over everyday Americans.
The lawmakers sent letters to each pharmaceutical company, demanding answers. They want to know how much these companies have spent on lobbying Congress to maintain this tax loophole. For instance, Johnson & Johnson spent over $150,000 lobbying on international tax issues in late 2024 alone. The stakes are high. If the GOP's multitrillion-dollar tax and spending package passes as is, it could make many provisions of the 2017 tax act permanent. This includes significant cuts to programs for low-income Americans, such as Medicaid.
The Senate is now the battleground. Republicans hold the majority, making it difficult for Democrats to eliminate the offshore tax loophole. Yet, the Democrats are rallying public opposition against parts of the legislation. They argue that expanding tax loopholes for Big Pharma while these companies profit off Americans is a slap in the face. The Council on Foreign Relations estimates that reforming the offshore tax loophole could raise at least $100 billion over the next decade.
The pharmaceutical industry has faced scrutiny before. A recent report accused Pfizer of executing what some called the largest tax-dodging scheme in the industry’s history. The company allegedly used a tactic known as “round-tripping” to avoid paying U.S. income tax on $20 billion in domestic drug sales in 2019. Despite these allegations, Pfizer claims it paid $12.8 billion in U.S. taxes over four years.
As the debate unfolds, the Trump administration is considering imposing tariffs on pharmaceuticals to encourage domestic manufacturing. Trump has criticized countries like Ireland for luring drugmakers with low tax rates. The pressure is mounting on pharmaceutical companies to justify their tax practices while they continue to charge Americans exorbitant prices for medications.
Meanwhile, in a different corner of the pharmaceutical world, Celltrion has made headlines with the FDA's approval of a new presentation of its biosimilar drug, STEQEYMA. This approval expands dosing options for pediatric patients with plaque psoriasis and psoriatic arthritis. The new 45mg/0.5mL solution in a single-dose vial allows for greater flexibility in treatment, particularly for younger patients weighing less than 60kg.
Celltrion's STEQEYMA now matches all dosage forms of its reference product, STELARA. This approval is a significant step for the company, which aims to broaden access to innovative treatments for chronic inflammatory conditions. The FDA's decision was based on a phase III study demonstrating that STEQEYMA is highly similar to its reference product, with no clinically meaningful differences in safety and efficacy.
The approval reflects a growing trend in the pharmaceutical industry toward biosimilars. These drugs offer more affordable alternatives to expensive biologics, potentially easing the financial burden on patients and healthcare systems. Celltrion's commitment to expanding access for all patient populations, including children, is commendable. The company is positioning itself as a leader in the biosimilar market, with a focus on immunology and other therapeutic areas.
As the Senate debates the future of tax policy and pharmaceutical pricing, the contrast between the actions of Big Pharma and the needs of everyday Americans is stark. The calls for accountability grow louder. Lawmakers are demanding transparency and fairness in a system that often seems rigged in favor of corporate interests.
The stakes are high. Will Congress take action to close the tax loopholes that allow pharmaceutical companies to evade their fair share? Or will the industry continue to thrive at the expense of American consumers? The answers will shape the future of healthcare in the United States.
In the end, the battle over pharmaceutical taxes and pricing is not just about numbers. It’s about people. It’s about families struggling to afford medications. It’s about ensuring that corporations contribute their fair share to the society that enables their success. As the debate rages on, one thing is clear: the American public is watching. The outcome will resonate far beyond the Senate floor.