Tag: Addiction

Not Enough Bullets

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By agreeing to pay penalties without admitting wrongdoing, the pharmaceutical companies that flooded the United States with opioids will be able to deduct billions from their taxes as a result.

Needless to say, the laws involving this need to change, pronto:

Four companies that agreed to pay a combined $26 billion to settle claims about their roles in the opioid crisis plan to deduct some of those costs from their taxes and recoup around $1 billion apiece.

In recent months, as details of the blockbuster settlement were still being worked out, pharmaceutical giant Johnson & Johnson and the “big three” drug distributors — McKesson, AmerisourceBergen and Cardinal Health — all updated their financial projections to include large tax benefits stemming from the expected deal, a Washington Post analysis of regulatory filings found.

The Dublin, Ohio-based Cardinal Health said earlier this month it planned to collect a $974 million cash refund because it claimed its opioid-related legal costs as a “net operating loss carryback” — a tax provision Congress included in last year’s coronavirus bailout package as a way to help companies struggling during the pandemic.

The deductions may deepen public anger toward companies that prosecutors say played key roles in a destructive public health crisis that kills tens of thousands of Americans every year. In lawsuits filed by dozens of states and local jurisdictions, public officials have argued that the companies, among other corporate defendants, flooded the country with billions of highly addictive pills and ignored signs they were being steered to people who abused them. 

Gee, you think that allowing these companies to turn their malevolent activities into tax breaks might be a bit controversial? 

………

All four firms disavow any wrongdoing or legal responsibility. The companies have said they produced government-approved prescription pills, distributed them to registered pharmacies and took steps to try to prevent their misuse.

U.S. tax laws generally restrict companies from deducting the cost of legal settlements from their taxes, with one major exception: damages paid to victims as restitution for misdeeds. Still, Congress has placed stricter limits on such deductions in recent years, and some tax experts say the Internal Revenue Service could challenge the companies’ attempts to deduct opioid settlement costs.

Harry Cullen, a Brooklyn-based activist who has worked to hold drug companies accountable for the epidemic, said it is “incredibly insulting” that companies would try deduct the settlement payments. “As if they are donating it to these people who they harmed in the first place.”

I would also note that the entire “No admission of guilt” settlement regime needs to end.

When the end result is, “No harm, no foul, pay 15% of what you made thought your evil deeds,” these companies will continue to do harm to society.

This is Not Surprised Face

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I’m not:

Popular e-cigarette maker Juul intentionally and egregiously tailored its marketing to appeal to underage youth, according to a lawsuit filed by Massachusetts Attorney General Maura Healey on February 12. The company’s early marketing in 2015 and 2016 purposefully used young, “cool” models in its launch campaign, recruited teen “influencers” on social media, and bought banner and video advertisements on numerous websites aimed at teens and children, including Cartoon Network’s cartoonnetwork.com and Nickelodeon’s sites Nick.com and NickJr.com. Juul even went so far as to give advice to underage consumers over email on how to get around age restrictions to make online purchases of the company’s e-cigarettes.

The lawsuit lands as public health officials across the nation are still grappling with an explosion in e-cigarette use by youth, which the Food and Drug Administration has referred to as an “epidemic.” Between 2011 and 2019, recent use of e-cigarettes by middle schoolers increased from 0.6 percent to 10.5 percent, according to the Centers for Disease Control and Prevention. For high schoolers, use increased from 1.5 percent to 27.5 percent in that timeframe. That means that by 2019, more than 1 in every 4 high school students said they had used e-cigarettes within the last 30-days from the time of the survey.

I really hope that there are criminal prosecutions int he future, but I doubt it.

They will just pay some fines, and it will be considered a cost of doing business.

Remember the Study That Had Rats Killing Themselves with Cocaine?

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It turns out that the study placed rats in miserable conditions, and when rats were placed in better environments, not only did they eschew drugged water, but addicted rats placed in better conditions stopped using as well.

The addiction crisis is driven by misery in the lives of ordinary Americans.

The parallels between the current US opioid epidemic and the explosion in drug and alcohol abuse in the Soviet Union just prior to its collapse are striking:

One of the ways this theory was first established is through rat experiments — ones that were injected into the American psyche in the 1980s, in a famous advert by the Partnership for a Drug-Free America. You may remember it. The experiment is simple. Put a rat in a cage, alone, with two water bottles. One is just water. The other is water laced with heroin or cocaine. Almost every time you run this experiment, the rat will become obsessed with the drugged water, and keep coming back for more and more, until it kills itself.

The advert explains: “Only one drug is so addictive, nine out of ten laboratory rats will use it. And use it. And use it. Until dead. It’s called cocaine. And it can do the same thing to you.”

But in the 1970s, a professor of Psychology in Vancouver called Bruce Alexander noticed something odd about this experiment. The rat is put in the cage all alone. It has nothing to do but take the drugs. What would happen, he wondered, if we tried this differently? So Professor Alexander built Rat Park. It is a lush cage where the rats would have colored balls and the best rat-food and tunnels to scamper down and plenty of friends: everything a rat about town could want. What, Alexander wanted to know, will happen then?

In Rat Park, all the rats obviously tried both water bottles, because they didn’t know what was in them. But what happened next was startling.

The rats with good lives didn’t like the drugged water. They mostly shunned it, consuming less than a quarter of the drugs the isolated rats used. None of them died. While all the rats who were alone and unhappy became heavy users, none of the rats who had a happy environment did.

………

 Professor Alexander argues this discovery is a profound challenge both to the right-wing view that addiction is a moral failing caused by too much hedonistic partying, and the liberal view that addiction is a disease taking place in a chemically hijacked brain. In fact, he argues, addiction is an adaptation. It’s not you. It’s your cage.

After the first phase of Rat Park, Professor Alexander then took this test further. He reran the early experiments, where the rats were left alone, and became compulsive users of the drug. He let them use for fifty-seven days — if anything can hook you, it’s that. Then he took them out of isolation, and placed them in Rat Park. He wanted to know, if you fall into that state of addiction, is your brain hijacked, so you can’t recover? Do the drugs take you over? What happened is — again — striking. The rats seemed to have a few twitches of withdrawal, but they soon stopped their heavy use, and went back to having a normal life. The good cage saved them. (The full references to all the studies I am discussing are in the book.)

(emphasis mine)

Addiction is not just an artifact of pharmaceutical company malfeasance: It is a canary in a coal mine.