I 
109TH CONGRESS 
2D SESSION 
H. R. 4706 
To amend the Internal Revenue Code of 1986 to deny any deduction for 
certain gifts and benefits provided to physicians by prescription drug 
manufacturers. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 7, 2006 
Mr. STARK (for himself, Mr. EMANUEL, Mr. DEFAZIO, Mr. DOGGETT, Mr. 
HINCHEY, and Mr. MCDERMOTT) introduced the following bill; which was 
referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to deny any 
deduction for certain gifts and benefits provided to physi-
cians by prescription drug manufacturers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Prescription Drug 
Safety and Affordability Act of 2006’’. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) gifts to physicians from pharmaceutical 
companies lead to the unnecessary prescribing of
prescription drugs, inflating the costs of prescrip-
tions and jeopardizing patient safety, 
(2) 
the 
pharmaceutical 
industry 
annually 
spends $7,800,000,000 promoting and marketing 
their products, by way of meals, travel subsidies, 
and other gifts to medical professionals, 
(3) drug companies annually spend approxi-
mately $10,000 per physician on such promotions, 
(4) the present extent of physician-industry 
interactions appears to adversely affect prescribing 
and professional behavior and should be further ad-
dressed at the level of policy and education, and 
(5) either redirecting these funds to research or 
lowering the costs of prescription drugs is a much 
more needed expenditure by the pharmaceutical in-
dustry. 
SEC. 3. DISALLOWANCE OF DEDUCTION FOR PHYSICIAN 
GIFT EXPENSES OF PRESCRIPTION DRUG 
MANUFACTURERS. 
(a) GENERAL RULE.—Part IX of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 (relating 
to items not deductible) is amended by adding at the end 
the following new section:
‘‘SEC. 280I. PHYSICIAN GIFT EXPENSES OF PRESCRIPTION 
DRUG MANUFACTURERS. 
‘‘(a) GENERAL RULE.—No deduction shall be allowed 
under this chapter for any physician gift expense paid or 
incurred by any prescription drug manufacturer. 
‘‘(b) PHYSICIAN GIFT EXPENSE.—For purposes of 
this section, the term ‘physician gift expense’ means any 
gift provided directly or indirectly to or for the benefit of 
a physician, including gifts of meals, sponsored teachings, 
symposia, and travel, but not including product samples. 
‘‘(c) PRESCRIPTION DRUG MANUFACTURER.—For 
purposes of this section, the term ‘prescription drug man-
ufacturer’ means— 
‘‘(1) any person engaged in the trade or busi-
ness of manufacturing or producing any prescription 
drug, and 
‘‘(2) any person who is a member of an affili-
ated group which includes a person described in 
paragraph (1). 
For purposes of the preceding sentence, the term ‘affili-
ated group’ means any affiliated group as defined in sec-
tion 1504 (determined without regard to paragraphs (3) 
and (4) of 1504(b)).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part IX of subchapter B of chapter 1 of such Code 
is amended by adding at the end the following new item:
‘‘Sec.
280I. Physician gift expenses of prescription drug manufactur-
ers.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2006. 
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