WASHINGTON, D.C. – During a Senate Finance Committee hearing yesterday on initial assessments of the Trump/Republican Tax law, U.S. Senator Bob Menendez questioned whether massive corporate tax breaks were having a positive impact on the lives of middle class families.

Citing the fact that the top five pharmaceutical companies used their windfalls for billions in stock buybacks that benefit corporate CEOs and very wealthy shareholders, Menendez asked David Kamin, former Special Assistant to President Obama for Economic Policy, if he believed the massive tax cuts big drug companies received would result in lower prescription drug prices for consumers:

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Menendez:

“The rising cost of healthcare – prescription drugs in particular – has squeezed middle class families, forcing many to choose between their mortgage and their medicine. But despite seeing their corporate tax rate drop nearly 40% and getting an even lower rate on their foreign earnings, the drug companies have done nothing to lower the cost of prescription drugs. In fact, many have actually gone about increasing prices for some of their most profitable drugs, with one study identifying 1,300 drug price hikes this January. Pharmaceutical giants such as AbbVie announced it would increase the price of Humira by nearly 10 percent, while Celgene hiked up the price of two of its cancer drugs by 9 percent each.

“Indeed, rather than reinvesting their multi-billion dollar windfall back to their customers and workers, the top five pharmaceutical companies have announced $45 billion in stock buybacks that disproportionately benefit corporate CEOs and very wealthy shareholders. Pfizer announced a $10 billion stock buyback late last year, Celgene gave their CEO and shareholders a $5 billion Valentine’s Day gift this February 14th, and AbbVie doubled that amount a day later. Professor Kamin, do you see any indication that this trend will change? Do you believe that the $1.5 trillion corporate tax break will considerably reduce prescription drug prices?”

Pointing to the huge increase in the deficit as a result of the Republican tax law, Sen. Menendez later asked Kamin to illustrate the eventual impact on millions of middle class families that rely on Social Security and Medicare:

“Menendez: “Professor Kamin, in your testimony you note that the cost of a Trump Tax Bill made permanent is equal to the Social Security trust fund’s entire shortfall for the next 75 years. Put another way, if Republicans had simply taken the trillions of dollars this tax bill cost and instead of giving it away to corporations, used it to fix Social Security, the Social Security Trust Fund would be fully solvent for the next 75 years. Can you connect the dots and paint a picture what the Trump Tax Bill will mean for the millions of middle class families that rely on Social Security and Medicare to live out their retirement in dignity?”