Drug Industry Taxes and Prices

Well, what do you know? Not only does the pharmaceutical industry make the highest profits of all industries, it also pays the lowest rate of tax on its profits (“Drug Makers Taxed Less Than Other Industries, Study Finds,” Dec. 26). Drug makers paid a U.S. rate of 16.2% from 1993 to 1996 compared to 27.3% paid by all other industries, according to the nonpartisan Congressional Research Service. The industry was able to reduce its taxes by $3.8 billion in 1996.

Jeff Trewhitt, spokesperson for the Pharmaceutical Research and Manufacturers of America, says the reason for lower prices for American drugs in other countries is that many developed nations have strict price controls.

Why not in the U.S.? For beginners, why not tax profits from the manufacture of drugs in American-owned factories in U.S. possessions? Further, the U.S. should require that profits on drugs developed by the National Institutes of Health and turned over to private industry should be no greater than the average rate of profit for all industry.

SOL LONDE MD

Northridge

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According to your Dec. 29 editorial, Americans pay $106.68 for a month’s supply of Zocor (for those who can’t refrain from eating high-cholesterol foods) and $222.19 for a month’s supply of Zoloft (for those who feel sad sometimes). Furthermore, “The U.S. prescription drug industry is unquestionably the world’s most innovative, but there’s no reason U.S. consumers should have to pay the highest prices for that ingenuity.” Not fair!

Using the same (il)logic, doesn’t The Times have an obligation to lower its prices to my satisfaction, even if it has to operate at a loss? After all, there is no reason why I as a consumer should have to pay the highest prices for that ingenuity.

BEN ROTHMAN

Culver City