CRS: House Drug Bill’s Excise Tax Could Face Constitutional Challenge

Provisions of House Democrats’ government drug price negotiation bill could be vulnerable to constitutional challenges, according to an Oct. 21 memo by the nonpartisan Congressional Research Service. The excise tax in H.R. 3 is particularly vulnerable because it’s so harsh that the high court could consider it too excessive, CRS lawyers warn, but Democrats are not worried about constitutional challenges because Congress has broad authority over taxes. “The excise tax this bill would impose on drug manufacturers that continue to...