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Thom’s Magic Wand – Tax Edition: Tillis Helped His Big Pharma Donors Keep Billions Of Dollars Through GOP Tax Bill

Thom’s Magic Wand – Tax Edition: Tillis Helped His Big Pharma Donors Keep Billions Of Dollars Through GOP Tax Bill

Ahead Of Friday’s Anniversary Of Tillis’ Vote For The GOP Tax Law, Team Cal Will Recap The Impact Of His Vote

RALEIGH, NC – As Senator Tillis launched his reelection bid he told WRAL that, “we’d be even better off” if he could “wave a wand and do everything we did in North Carolina up in D.C.”

Last week, as he filed for re-election, Tillis vowed to run on that record from Raleigh to D.C., so today we bring you a new series “Thom’s Magic Wand.” We’ll have plenty editions of “Thom’s Magic Wand” coming your way over the course of the campaign, but this week, ahead of the Friday anniversary of Tillis’ vote for the GOP tax law in 2017, we will review the impact of Tillis’ record on taxes.

As both Speaker of the North Carolina House and as Senator, Tillis helped pass tax legislation that benefited corporations and the highest income earners the most. In contrast, Cal Cunningham is committed to tax policy that benefits North Carolina families.

Today, we’re reviewing how Tillis helped his Big Pharma donors keep billions of dollars through the GOP Tax Law.

While it’s no secret that massive corporations who benefited from the GOP tax bill have rewarded Republican politicians handsomely for their vote, today, we’ll review how Tillis helped his Big Pharma donors keep billions of dollars through the tax bill.

  • Four of the country’s biggest pharma companies, which account for $35,000 in corporate PAC donations to Tillis, collectively saved $7 billion thanks to the tax bill Tillis supported. 

    • According to an Oxfam America study, “The promise of the 2017 US corporate tax cuts was that, in exchange for deep tax cuts, US companies would invest, boost economic prosperity and create jobs. Any revenue losses from the corporate tax cuts would pay for themselves, proponents claimed, through economic growth and by tackling offshore corporate tax avoidance…there is very little evidence that these four U.S. pharmaceutical companies have ended their use of offshore tax havens or meaningfully invested in the U.S…What’s more, Johnson & Johnson, Pfizer, Merck and Abbott Laboratories seem to have received almost $7 billion last year from two of the main provisions in the new tax code ($1.7 billion from the corporate tax rate cut and $5.3 billion from the tax break on previously untaxed offshore earnings).
  • Instead of passing the windfall pharmaceutical companies received thanks to the tax law onto consumers in the form of cheaper prescription drugs, Big Pharma used it to enrich its executives and shareholders.

    • Axios: “The Republican tax law has rerouted billions of dollars from the federal treasury into the bank accounts of health care companies and Wall Street investors. […] The bottom line: Some companies have had similar or even higher tax bills this year compared with last year. But these 6 companies alone have reaped $2.6 billion from the lower corporate tax rate — a haul that has more than paid for any lobbying to get the law across the finish line.”

    • Washington Post: “But here’s an effect of the tax overhaul that is clearer: It means more money in the pockets of insurers and probably drugmakers, too.”

    • Axios: “That money is enriching hedge funds, other Wall Street investors and top drug company executives, but it isn’t necessarily helping patients.”

  • As of September 2019, Tillis has accepted $260,000 from corporate PACs that represent the pharmaceutical industry. 

  • In contrast, Cal Cunningham will support tax policy that puts more money in the hands of North Carolina families by supporting expansions of the Earned Income Tax Credit and Child Tax Credit. He will also support efforts to bring down the cost of prescription drugs, including allowing Medicare to negotiate directly with drug companies.