what i was thinking of was that they say they have to charge $2000 for a drug to offset development costs when we are paying, not them,
of course this doesn't apply to every drug from every company...
Remember, deducting r&d costs doesn’t mean the government pays all of it. It just means you aren’t paying taxes (at corporate tax rate) on money used for R&D. Corporate tax rate is about 20 Percent plus some state tax.
So gummint in not taxing the income that is offset by R&D is paying 20 percent of the costs in reality.
Of course how many grants do they get? How much of their research comes Out of state and government subsidized academic research projects at universities? So it’s offset more.
Tax breaks for r&d spending… if applied universally are great innovation drivers. When directed to pet projects or skewing research however, these tax breaks (or grants) can totally screw up economic forces.
Look at all the money being spent to prove the total lie of climate bs. But that money is skewing all other R&D towards useless feel-good vapor ware or useless ‘technologies’ that set us back versus What the free market could accomplish.
And when pharma is funded and mobilized in a moment of mass hysteria to inject millions with experimental poisons? Well, that’s not market forces. But is how we got in this died suddenly state of affairs.
Maybe some lessons will be learned.