[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 104 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
S. RES. 104

 To state the Sense of the Senate regarding the tax status of payments 
      made as a result of the recent tobacco liability settlement.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 1997

Mr. Harkin (for himself, Mr. Lautenberg, and Mr. Kennedy) submitted the 
  following resolution; which was referred to the Committee on Finance

_______________________________________________________________________

                               RESOLUTION


 
 To state the Sense of the Senate regarding the tax status of payments 
      made as a result of the recent tobacco liability settlement.

Whereas the tobacco industry, state attorneys general, and individual 
        plaintiffs' attorneys have reached an agreement to settle tobacco 
        litigation in 40 states and the tobacco industry has agreed to pay 
        $368.5 billion over 25 years, most of which would go to States;
Whereas, under the terms of this agreement, this payment will be counted as a 
        ``normal and necessary'' business expense and will therefore be 
        considered tax deductible for federal tax purposes, potentially 
        requiring American taxpayers to subsidize up to $147 billion of the 
        settlement payment; and
Whereas, while many of the details of the agreement will require further 
        examination and possible alteration, the United States Senate should go 
        on record stating its concern about this provision's potential impact on 
        federal revenues and the deficit: Now, therefore, be it
    Resolved, That it is the sense of the Senate that to protect the 
interests of the American taxpayer, any legislation implementing the 
tobacco liability settlement shall prohibit parties to the agreement 
from claiming federal tax deductions for these payments.
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