Some believe that government first emerged from the practices of bandits who, tired of marauding, settled down and established dominion over a single locality’s inhabitants. These newly stationary bandits demanded from their subjects taxes and fealty in exchange for protection — or so the theory…
The IRA, which did nothing to curb inflation, seems misinformed of many ordinary words’ meanings. It says Medicare will “negotiate” drug prices with manufacturers. But the process involves “negotiation” only in the sense that an armed mugger “negotiates” for his victim’s wallet. Companies cannot contest the prices HHS will unilaterally set, and the IRA explicitly insulates the agency’s determinations from judicial and administrative review.
Should firms balk, they must either remove all their products from Medicare and Medicaid or submit to a so-called “excise tax.” The former option constitutes an economic impossibility for drug companies and a potential medical crisis for their patients. Washington has acquired ineluctable market power. Medicare Part D and Medicaid patientsnearly half of American prescription drug spending, and drug companies cannot afford to boycott its markets.
“Excise tax” is another misleading label since this charge functions less as a tax than as a punitive deterrent. According to the
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