Behold the proof:
In an attempt to illustrate the real world consequences of reform’s taxes, Senate Republicans are pointing out a provision that would tax the makers of swine flu vaccines and drugs. The provision raises $2.3 billion annually from drug makers who sell their products through government programs.
Of course, this means that the makers of the swine flu vaccine will have less incentive in the future to manufacture the vaccine, in the event that the tax in question goes through. And needless to say, the disincentives that will come about as a result of this and other taxes/attacks on the pharmaceutical industry will hamper the manufacture of other drugs as well. R&D costs for pharmaceutical companies are onerous, to say the least, so these companies don’t have much margin for profit to begin with. When that margin gets reduced still further, fewer drugs come down the pipeline, sick patients get sicker, and many of them end up dying.
This isn’t difficult to understand. But apparently, a good segment of Washington is bent on ignoring this observation.