Rep. Chip Roy Introduces The BEAT CHINA Act
Rep. Chip Roy introduces the BEAT CHINA Act:
As we are seeing play out in real time, the United States does not have nearly enough control of the pharmaceutical supply chain. For example, roughly 97 percent of the antibiotics used in the U.S. come from China, and necessary ingredients for many lifesaving drugs are made exclusively in China. If the Chinese wanted to put us in a serious bind, they could withhold these lifesaving drugs from the United States, as their own government-run newspapers have already suggested.
We need to be looking for options today to alleviate our dependence on China for pharmaceuticals. Luckily, there are great options domestically, including right outside the Gulf of Mexico in the Caribbean Sea – Puerto Rico.
Prior to 1996, when the Clinton Administration rid certain tax treatments for companies manufacturing in Puerto Rico, Puerto Rico offered a robust economic incentive for pharmaceutical manufacturers. Though the Puerto Rico economy was not in an ideal spot, it is not coincidental that the same year the Clinton tax changes went into effect, Puerto Rico began a deep recession as pharmaceutical companies left the territory.
If we reform our tax code, we can incentivize companies to produce in the U.S. This is why I am planning to introduce the “Bring Entrepreneurial Advancements To Consumers Here In North America (BEAT CHINA) Act” to incentivize pharmaceutical companies to once again manufacture medicine in the United States.
This legislation will offer a few specific changes to the tax code, and will allow qualifying companies to obtain beneficial tax treatments for manufacturing in U.S. territories. This legislation will help end the United States’ pharmaceutical dependency on foreign countries, and ensure that our national security is not at risk through threats to the medical supply chain.
There is much to do to ensure we are taking necessary actions to support proper public health and economic responses during the coronavirus pandemic, but we also need to look ahead to fixing some of the most concerning issues facing our country that have only been highlighted by the recent crisis. I look forward to continuing to work with my colleagues to debate solutions to bringing the medical supply chain back to the U.S.