[Congressional Record Volume 144, Number 37 (Friday, March 27, 1998)]
[House]
[Page H1691]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 WHO ARE WE REALLY PUNISHING: THE TOBACCO COMPANIES OR PEOPLE WHO CAN 
                     LEAST AFFORD THE TAX INCREASE?

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Kentucky (Mr. Lewis) is recognized for 5 minutes.
  Mr. LEWIS of Kentucky. Mr. Speaker, I rise today to remind my 
colleagues of those Americans who are being pushed aside in our zeal to 
punish the tobacco companies and curb youth smoking. The rhetoric and 
demagoguery waged against tobacco gives new meaning to the ``politics 
of fear.'' If only there was the same commitment to wipe out illegal 
drugs, violence and illegitimacy, the hypocrisy of this campaign would 
not be so blatant.
  Yes, Mr. Speaker, here we go again. From no new taxes to lining up 
for pushing to the limits the most regressive tax in America. Mr. 
Speaker, let me say it once and say it loud and clear: A tax is a tax 
is a tax.
  The Senate Budget Committee resolution to raise tobacco excise taxes 
by $1.50 is far from an act of courage and wisdom. Rather, the decision 
is borne out of fear, expedience, and illusion. This tax is income 
redistribution at its worst, pure and simple. The very defenders of our 
poor and middle-class citizens prefer to ignore the ugly truth of the 
proposed excise tax increase. Instead, they have convinced themselves 
that they know what is best for Americans. Once again, these Members of 
Congress will look the other way because they know that already over 50 
percent of the Federal cigarette excise tax is paid by American 
taxpayers who earn less than $30,000 a year. Even worse, only 7 percent 
is paid by folks with incomes over $75,000.
  Mr. Speaker, we cannot hide from the burden that this huge tax 
increase will have on our lower-income families. For someone who smokes 
a pack of cigarettes a day, our Federal Government will be taking an 
additional $550 a year, and this is no small change if someone is 
making less than $20,000 a year.
  And where is all the money going? For starters, the antitobacco trial 
lawyers are lining up at the trough, when and if the States ever 
receive their portion of the new taxes and direct payments from the 
tobacco companies. But that is not all. We also have the Conrad and 
Kennedy bills, among others, that are ready to launch a new era of big 
government with hard-earned dollars from low-income taxpayers.
  Even worse, there are some Members who believe we can use this tax 
increase on smokers and pay for other Americans to enjoy a tax cut.
  Mr. Speaker, I will be among the first to support a much-needed tax 
relief bill. But the excise tax is an income transfer, not a tax break. 
Who are we really punishing? The tobacco companies? Or people who can 
least afford the tax increase?
  The fact is that this new cost will be passed on to the consumer by 
the companies, whether it is from a tax or a national settlement. 
Twenty-five percent of American adults who choose to buy a legal 
product, albeit one that causes serious health problems, may soon be 
lining the pockets of trial lawyers and funding new Federal programs 
that have precious little to do with stopping kids from smoking.
  We are told that smokers must be held accountable for the increased 
medical cost brought on by smoking-related illnesses. There is a myth 
that smokers impose higher medical costs on society and this justifies 
the increase in our Federal excise tax. A study published in the New 
England Journal of Medicine tells us otherwise. The uncomfortable truth 
is that the lifetime medical costs of smokers are smaller than those of 
nonsmokers.
  No doubt that many of us have encountered the suffering of a friend, 
a relative or a loved one who has been diagnosed with lung cancer or 
perhaps emphysema. I believe there are more effective ways, however, 
that will help us convince young and older Americans alike that smoking 
does have dire consequences for them, and for themselves and for the 
people that care for them.
  One young man from Murray, Kentucky, said it best during his recent 
testimony to the House Committee on Commerce. The answer to reducing 
teen smoking lies with the family, and I quote, ``This can be done in 
the home, not in Washington.'' His answer is hard to argue with, but I 
would add that our Federal Government can play a valuable role in 
supporting this message at home by helping to educate our youth through 
the media and the classroom.
  We have made tremendous progress in this country in reducing the 
prevalence of smoking, and we can do even more with realistic 
constructive policies. Are we going to further punish adults who choose 
to smoke with higher taxes? Or is it time to embrace an imperfect but 
comprehensive settlement that, in the words of the Louisville Courier 
Journal Editorial Board, seeks an opportunity to make smoking more 
expensive and less attractive, especially to kids?
  Congress must find the courage to adopt sensible national tobacco 
legislation. Ample evidence here at home and around the world shows the 
folly of taxing cigarettes out of the marketplace. Look no further than 
to our Canadian neighbors to understand the very real possibility of 
black market imports of cigarettes that will elude high Federal tax. 
Despite the fact that Canada doubled its tax on cigarettes in 1983, the 
increased levy has failed to reduce youth smoking and may have even 
made it more difficult to control because of smuggling. In our own 
Nation's history, we need to look no further than the era of 
prohibition to see how our government can create black market windfalls 
for criminals.
  If we follow the mad rush towards another new tax, we will begin to 
destroy the livelihood of thousands of small family farms. Yes, we can 
spend millions of dollars to retrain these farmers, but I assure my 
colleagues that Congress cannot replace the way of life and culture 
they have cherished in our State for generations.
  Once again, Mr. Speaker, Americans and people throughout the world 
will continue to smoke for years to come despite all our efforts to tax 
tobacco to death. I urge my colleagues to seek a solution that strives 
for prevention and cessation, not the punishment of fifty million 
Americans and thousands of tobacco farmers and workers.




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