A Modest Proposal to Raise Federal Revenue

As a way to tackle drug prices, President Joe Biden recently announced that he supports the so-called “inflation rebate,” which would require drug companies to give the federal government any revenue from Medicare drug prices above the general rate of inflation. Senate Finance Committee Chairman Ron Wyden and House Speaker Nancy Pelosi have also publicly endorsed the inflation rebate.

Given the struggles of the Democrats in raising revenue for their $3.5 trillion spending lollapalooza, why limit the inflation rebate to prescription drugs? If this inflation rebate is such a clever idea, why not raise revenue by also taxing excessive price increases on everything purchased or subsidized by the government? Read Full Article »