Friday, July 07, 2006

State offering new formula

Richmond, Va.

"The Virginia Department of Health says a new company is being used to provide formula for the program. Under the new contract, the program will receive more than 24-point-five (m) million dollars a year in rebates on cans of formula purchased through the program... More than 30,000 infants in the program use the formula..." Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Please, someone, tell me how the formula companies can afford these multi-million dollar "rebates", which are, of course, tax deductible for them, if the state were really getting the lowest possible pricing?

And how could be this massive over-pricing be occurring if the industry is not colluding on pricing?

I’m not sure, but I think that this means that Virginia residents’ tax dollars are being overspent by at least $24.5 million, and, then, on top of this, our federal tax dollars are paying for the tax deduction claimed by the company against this gift/rebate to the state.

As a result, Virginian tax payers are paying twice, and the formula companies are earning twice.

And the formula companies are getting richer – just read the market news...

1 comment:

MsTinkerbell said...

What an outrage but not a surprise.
It's unfortunate that many Big companies take unfair advantage continually!