GMHC STATEMENT TO THE INDUSTRIAL AGENCY OF THE NEW YORK CITY ECONOMIC DEVELOPMENT CORPORATION

Re: Tax abatement for Pfizer, Inc. 

June 9, 2003

Gay Men’s Health Crisis (GMHC), the world’s most experienced and comprehensive not-for-profit AIDS organization, requests that the New York City Economic Development Corporation (NYC EDC) seriously reconsider the request from Pfizer, Inc. for a tax abatement of $46 million.  GMHC believes that providing public subsidies, in the form of tax abatements, to corporations that vehemently oppose state efforts to control the escalating costs of prescription drugs is bad public policy.  It should be called into question why the City of New York would give tax breaks and grants to Pfizer, Inc., the world’s largest drug company with profits of $9.1 B, when this corporation actively supports public policies that have the effect of hampering access to the life-saving medications it produces to millions of people in the United States and around the world.   

Controlling the growing cost of prescription drugs is important to expanding access to treatment and maintaining the fiscal viability of public coverage programs, such as Medicaid and the AIDS Drug Assistance Program (ADAP), as well as controlling the cost of insurance that must be purchased by individuals and employers.

Providing a tax abatement to corporations such as Pfizer is a bad use of public subsidies.  If the State enacts measures to control the growing price of prescription drugs and as a result Pfizer takes actions that create a negative impact on the city’s economic development, then the City risks losing a return on its investment, and the faith of its residents.

For more information, please contact David Wunsch at 212-367-1232.