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# Bill Seeks to Kill Tax Deductions for DTC Ad Expenses
- URL: https://www.fdaweb.com/bill-seeks-to-kill-tax-deductions-for-dtc-ad-expenses/
- Published: 2025-04-29T12:00:00.000Z
- Updated: 2026-09-14T15:10:32.000Z
- Author: David McFarland
- Tags: FDA Policy/General, #legacy-id-D5159081

Reps. **Greg Murphy** (R-NC), **Angie Craig** (D-MN), **Nick Begich** (R-AK), and **Hillary Scholten** (D-MI) have introduced the No Handouts for Drug Advertisements Act, a bill that would prohibit tax deductions for the annual $6 billion in expenses related to direct-to-consumer (DTC) advertising of prescription and compounded drugs.

“Direct-to-consumer drug advertising can promote inappropriate prescribing practices, undermine the doctor-patient relationship, and increase unneeded spending on medications,” Murphy says in a [release](https://murphy.house.gov/media/press-releases/murphy-introduces-legislation-eliminate-tax-deduction-drug-advertising?ref=fdaweb.com). “America is one of only two nations in the world that allows pharmaceuticals to be marketed directly to consumers. Patients should trust their doctor for medical guidance, not 30-second TV ads. This legislation ensures that resources are directed towards lowering drug costs and investing in the research and development of new, life-saving treatments.”

The legislation would eliminate the tax deduction companies can claim for pharmaceutical marketing and promotional expenses related to advertising on television, radio, social media, and other common platforms, according to Murphy. A Government Accountability Office report [found ](https://urldefense.com/v3/%5F%5Fhttps:/www.gao.gov/assets/gao-21-380.pdf%5F%5F;!!Fr0YZsIsFWxTZsBm-qTAg68!lNc2hinSCGTc4qMrUPw0uJs--tzeyBH212zTqRCB4qHgo4-9YxAUDOQcVP0NAprL3MQ8kvEfIR6LVXioGjhXuSXdQOgIpZbn%24?ref=fdaweb.com)that nearly all DTC spending was associated with costly brand-name drugs, with about two-thirds concentrated on 39 products.

The measure is just one of several bills aimed at pharamaceutical advertising in recent years. Earlier this year, Senators **Chuck Grassley** (R-IA) and **Dick Durbin** (D-IL) urged the Pharmaceutical Research and Manufacturers of America (PhRMA) to support their bipartisan [Drug-price Transparency for Consumers (DTC) Act](https://links-1.govdelivery.com/CL0/https:%2F%2Fwww.grassley.senate.gov%2Fnews%2Fnews-releases%2Fgrassley-durbin-relaunch-bipartisan-effort-to-boost-transparency-in-prescription-drug-advertisements/1/01000194be218559-cc61f4cd-464b-47a2-8e80-80dde9b500c2-000000/NEvG2Ua8AYcjL3WTf-JHJXh93W5rlCUWm3eEi7uhtfQ=390?ref=fdaweb.com) that would require price disclosures on prescription drug advertisements to “empower consumer choice and reduce patients’ bloated spending on medications.”

A Durbin [statement](https://www.durbin.senate.gov/newsroom/press-releases/durbin-highlights-bill-to-crack-down-on-prescription-drug-advertisements-boost-price-transparency-on-senate-floor?ref=fdaweb.com) said that in recent years the drug industry has sued to keep drug prices out of TV ads. “By requiring direct-to-consumer advertisements for prescription drugs to include a disclosure of the list price,” he said, “patients can make informed choices when inundated with drug commercials and pharmaceutical companies may reconsider their pricing and advertising tactics.”

In a [1/31 letter to PhRMA](https://links-1.govdelivery.com/CL0/https:%2F%2Fwww.grassley.senate.gov%2Fdownload%2Fgrassley-durbin-to-phrma%5F-drug-price-transparency-for-consumers-act/1/01000194be218559-cc61f4cd-464b-47a2-8e80-80dde9b500c2-000000/b2v9ZvV1HhPDE4g7qbU74RW19DM6C5GH9M997PNb2tY=390?ref=fdaweb.com), the lawmakers cited a recent study in the *Journal of the American Medical Association* that found that “more than two-thirds of drugs advertised on television were considered ‘low therapeutic value.’ This creates concern for taxpayers, as a review we requested from the Government Accountability Office (GAO) found prescription drugs advertised on television accounted for 58% of Medicare’s overall spending on prescription drugs between 2016-2018.”