S5584 CONGRESSIONAL RECORD — SENATE June 4, 1998 business. In the gospel world, she is the The PRESIDING OFFICER (Mr. the Cure. Since 1996, Lilly and Capitol bridge between pioneers like Mahalia Jack- SANTORUM). Without objection, it is so Hill have raised $200,000 for breast can- son and Clara Ward; she rode the tidal wave ordered. cer prevention, research, and treat- of Edwin Hawkins and James Cleveland and ment—75% of which stays in the DC now shares a national spotlight with the f Young Turks of gospel, Vickie Winans and metropolitan area. RESERVATION OF LEADER TIME Kirk Franklin. Two weeks ago, all the women in the Like Ella Fitzgerald, she puts her stamp The PRESIDING OFFICER. Under Senate joined me in circulating a on songs, and they never sound the same the previous order, the leadership time ‘‘Dear Colleague’’ letter encouraging again—from works by such gospel masters as is reserved. Members of Congress and staff to take Thomas A. Dorsey to religious verses by Bob Ms. COLLINS. Mr. President, I ask advantage of Lilly’s generous offer and Dylan. She performs songs, many of which register for this year’s race. And I she writes, that are highly personal—they unanimous consent that I be permitted would like to let my colleagues know reveal complicated lives lived by people who to proceed as if in morning business for may not have money, love or opportunity approximately 5 minutes. that it is not too late to participate. but who do have faith. The PRESIDING OFFICER. Without Late registrations are being accepted In many of her songs, Caesar starts with a objection, it is so ordered. up until Friday evening at 6:30 in the vignette of crisis, sometimes with just the The Senator from Maine is recog- lobby of the Department of Commerce. piano or organ in back of her. nized. Today, I rise to the floor to once ‘‘Have you ever walked the floor/all night Ms. COLLINS. I thank the Chair. again encourage my colleagues to alert long/wondering how you were going to pay members of their staff, their families your bills?’’ she sings at the beginning of the f wonderful ‘‘You’re Next in Line for a Mir- and friends to this valuable oppor- acle.’’ RACE FOR THE CURE tunity to support the Komen Founda- She repeats the lyrics, her raw voice de- Ms. COLLINS. Mr. President, in the tion and Race for the Cure on June 6th. manding emotional response. short time that I will take to deliver Thank you, Mr. President. I yield the ‘‘Get ready for your miracle/Move to the these remarks, a woman will be diag- floor. front of the line/Today is your day . . . get nosed with breast cancer. And every 12 ready, get ready, you are next in line for a f miracle—a miracle!’’ minutes, a woman will die from it. The orchestration expands and the choir Just this past year, breast cancer has sings the refrain above Caesar’s ‘‘Halle- touched my life twice: one member of NATIONAL TOBACCO POLICY AND lujahs.’’ On Wednesday, ‘‘A Miracle in Har- staff, aged 37, and the spouse of an- YOUTH SMOKING REDUCTION ACT lem,’’ nominated for best traditional soul other member of my staff both devel- gospel album, might win her a 10th Grammy. oped breast cancer. Watching these The PRESIDING OFFICER. Under (She has also been nominated more times women in their daily struggles has the previous order, the Senate will re- than any other gospel artist.) From the reli- sume consideration of S. 1415, which gious music community, she has won 15 Dove been a heart-wrenching experience as well as a call to action. the clerk will report. Awards and 10 Stellar Awards. The assistant legislative clerk read Not confined to music arenas and church- I know that several of my colleagues’ es, Caesar has done four Broadway shows and lives have also been personally touched as follows: contributed to the movie soundtracks of by breast cancer. The senior Senator A bill (S. 1415) to reform and restructure ‘‘The Preacher’s Wife’’ and ‘‘Rosewood.’’ In from Maine, OLYMPIA SNOWE, lost her the processes by which tobacco products are the spring, she’s scheduled to make a guest mother to breast cancer at a tragically manufactured, marketed, and distributed, to prevent the use of tobacco products by mi- appearance on UPN’s ‘‘Good News,’’ and her young age. Throughout her career in autobiography is scheduled for publication in nors, to redress the adverse health effects of May. When Dylan was chosen as a Kennedy Congress, Senator SNOWE has been a tobacco use, and for other purposes. Center honoree last year, he asked that Cae- tireless advocate for breast cancer awareness and increased funding for re- The Senate resumed consideration of sar sing his ‘‘Gotta Serve Somebody.’’ Caesar the bill. likes the fact that the salute portion of the search. Her leadership on this issue has night ended as she shouted ‘‘Jesus!’’ been invaluable—even lifesaving—for Pending: f countless women across the country. Gregg/Leahy amendment No. 2433 (to Breast cancer is the most frequently amendment No. 2420), to modify the provi- SCHEDULE diagnosed cancer in women in the sions relating to civil liability for tobacco manufacturers. Mr. HELMS. Mr. President, today the United States. However, when breast Gregg/Leahy amendment No. 2434 (to Senate will resume consideration of S. cancer is detected early and treated amendment No. 2433), in the nature of a sub- 1415, the tobacco legislation. There are promptly, suffering and the loss of life stitute. several amendments still pending to can be significantly reduced. Gramm motion to recommit the bill to the the bill, and it is hoped those issues Approximately one out of every eight Committee on Finance and with instructions can be disposed of at an early hour so women will develop breast cancer dur- to report back forthwith, with amendment that the Senate can consider additional ing her lifetime. In 1998 alone, an esti- No. 2436, to modify the provisions relating to amendments to the tobacco bill. mated 180,200 women will be diagnosed civil liability for tobacco manufacturers, and Rollcall votes, therefore, are ex- with breast cancer. Even more disturb- to eliminate the marriage penalty reflected ing, breast cancer is the leading cause in the standard deduction and to ensure the pected throughout today’s session of earned income credit takes into account the the Senate. As a reminder to all Mem- of death among women aged 35 to 54. elimination of such penalty. bers, there are a number of items that Washingtonians will have the oppor- Daschle (for Durbin) amendment No. 2437 the Senate may also resume, or begin, tunity to call attention to breast can- (to amendment No. 2436), relating to reduc- or both, including the Department of cer and raise much-needed research tions in underaged tobacco usage. Defense authorization bill, the con- dollars when the Susan G. Komen Daschle (for Durbin) amendment No. 2438 ference reports as they may become Breast Cancer Foundation hosts its 9th (to amendment No. 2437), of a perfecting na- available, and any appropriations bills annual National Race for the Cure on ture. that are ready for action. As always, Saturday, June 6. Mr. FRIST. Mr. President, over the other executive or legislative matters Those of us who work on Capitol Hill course of today we will continue our may be considered as they are cleared. have an added opportunity to contrib- discussions and debate on the pending On behalf of the majority leader, I ute to the cure for breast cancer tobacco legislation, a topic that has thank my colleagues for their atten- thanks to a challenge grant from Eli been the focus of much of our activity tion. Lilly and Company. The third annual over the past several weeks, a focus Mr. President, I ask unanimous con- Lilly Capitol Hill Challenge will match which I hope will become increasingly sent that with respect to the tobacco the registration fees for all members of addressed over this week. I ask that legislation the debate be in order only Congress, their spouses, and staff who amendments that are talked about until 10:30 this morning. participate in the National Race for being introduced are actually brought June 4, 1998 CONGRESSIONAL RECORD — SENATE S5585 to the floor so that they can be de- The other two out of three children eral partnership program that is di- bated. We have legislation in the may or may not continue smoking. rected at health care for our indigent Chamber that has a fascinating his- They may not be affected, because it is population, a population that falls tory, legislation that continues to not crystal clear that smoking 100 per- below the poverty level. That is why evolve, legislation that I believe is cent of the time causes cancer. But we this grassroots effort, now elevated to very important as we stay focused on know that it has a very, very strong in- this body, started at the State level. that goal of decreasing, and maybe fluence on whatever our genetic pre- The State attorneys general got to- even someday eliminating, youth disposition is to cancer, all sorts of gether to recover the Medicaid—pre- smoking. cancer, and to heart disease which—as dominantly State—costs for smoking- I am concerned that we have gotten a heart surgeon and heart specialist, I related illnesses, thus avoiding this off track in our consideration of what I have operated on thousands and thou- whole doctrine called the assumption believe has to be comprehensive to- sands and thousands of people whose of risk doctrine. bacco legislation. There are some peo- heart disease I would attribute—to ge- It has been fascinating, because in ple who would just like to establish a netics? yes, but also in large part to the course of these lawsuits, and in tax and have funds to go possibly to smoking. large part because of the lawsuits—and public health, but also to many other Focus on the health of our children we have seen it unfold before commit- issues totally unrelated to what our and their children. Many of us in this tees here in the U.S. Congress as well— focus should be, and that is youth Chamber do have children who are in internal industry documents have been smoking. There are others who say we those teenage years. A fascinating sta- made public. They have been made need to address just the advertising as- tistic is that about half of the people public for the first time and are now on pects of this particular bill. There are who start smoking, half of all people the Internet, accessible to the media, others who say that we look at just who start smoking today, are 8 years to committees here in the U.S. Senate, vending machines; and there are others old, 9, 10, 11, 12, 13, and 14 years of age. as well as to people who are, on their who say we can solve this whole prob- Half of all people who start smoking own, on the Internet; they have access lem by looking at just the public today in this country are 14 years of to these documents today. health initiatives of behavioral change, age and younger. That is very different It is very clear the industry knew a of figuring out what causes addiction. from in the past. I think in large part lot more about the science—that is, the I for one believe we need to address that does come from the fact that that addictive nature of nicotine—than they all of these issues, and we run the dan- group of people have been targeted in had let on, that they knew a lot more ger, maybe for political reasons, maybe recent years, over the last 5 or 10 about the destructive effects of smok- for selfish reasons, of taking a bill that years—unlike 20 years ago—because if ing tobacco than was ever previously did start as a comprehensive bill and you can addict people at that age, they thought. stripping away certain things so that will not only purchase more cigarettes The focus of the discussion today, we will end up with just a tax or just a as youths but, because of their addic- which really demands that we address public health initiative or just an issue tion, over their entire lifetimes. the issue, is that the debate no longer of access itself, and I think we need to This whole passage through adoles- is that smoking may be harmful to do all of that. cence is something which really con- your health, as it was 20 years ago—we As to youth smoking, we have talked fuses the issue. It would be much easier know that it is harmful to your again and again over the last 2 weeks if we said let’s stop everybody from health—the debate that we need to ad- about the alarming statistics of youth smoking, because then you could really dress in the U.S. Senate, however, is smoking. The one statistic that seems engage in huge, huge policy. But if you the youth smoking, where one really to stick with people is one that is real, really stay focused on the youth, it in- doesn’t engage in free choice to start and that is that over the course of today, between now and tomorrow troduces all sorts of factors that may smoking at 10 or 11 or 12 years of age. morning, 3,000 kids, underaged chil- not apply later: Advertising, how we That free choice can be targeted, can dren, will start smoking for all sorts of advertise to youth—is it just Joe be shifted by very aggressive market- reasons. Camel, or is it other seductive types of ing. And that is what has been done We know it is peer pressure, we know advertising? And then, how you sepa- today. it is advertising, we know it is access, rate that advertising from broader- If we look back again a few months, we know that it is looking cool; but re- scale advertising, something that we some of these States began to settle for gardless, the bottom line is that 3,000 cannot do in the U.S. Senate or the huge sums from the tobacco industry. kids who were not smoking yesterday U.S. Congress. I believe it does almost Mississippi, as we know, just 2 years by the end of today will be smoking. demand participation by the industry, ago settled for $3 billion; Florida and What has become increasingly clear to agree that somebody 8 years of age Texas were the next to settle, for $11.5 and possibly covered up by the indus- or 10 years of age or 12 years of age billion and $15.3 billion, respectively. try, in part—confused by politics—is should not be targeted by such adver- And then just last month, Minnesota, that 1,000 of those 3,000 will become ad- tising, which clearly results in a crip- the most recent to settle, settled for dicted to smoking, and by being ad- pling addiction which will ultimately about $6.6 billion. Look a few months dicted, it means your body becomes de- kill that child later in life. later and how all of this evolved. In the pendent on that, it is out of your con- For many years, individuals, if we Spring of 1997, interested parties came trol, to a large extent because of phys- look at the history, have not been suc- to the bargaining table. I say ‘‘inter- iological responses. But, regardless, the cessful in suing the tobacco industry ested parties,’’ because you really did bottom line is that one out of every because of a doctrine called assump- have the public health advocates at the three of those children, the age of my tion of risk doctrine. No jury would table: You had the State attorneys children, 15, 12, 11, 10 years of age, who side with a plaintiff, because the smok- general representing the Medicaid pop- start smoking today, one out of three er had assumed the risk associated ulation, representing the expense of will die prematurely; that is, die ear- with smoking. the States at the table; you had the in- lier than they would—of lung disease, However, if we review very briefly dustry—something which we don’t of cancer, of emphysema—earlier than this recent history, over the last sev- have today in the U.S. Congress and they would have if they hadn’t started eral months a group of State attorneys the U.S. Senate—we had the industry smoking. general got together and starting suing actually at the table, coming to cer- So, the problem is very, very clear the industry to recover Medicaid costs, tain agreements. today, much clearer than it was even 5 Medicaid costs being principally in- Let me add very quickly, it was fas- years ago or 10 years ago. Therefore, I curred by a State, because two-thirds cinating, because I am from a tobacco think it is useful to stick with that of Medicaid funds are paid for by the State; we have 23,000 hard-working statistic. You can argue the statistic, State and about a third from the Fed- women and men and farming families but the bottom line is that 1,000 chil- eral Government. And therefore it was who work very hard, get up every dren who start smoking today will die the State attorneys general. The Med- morning to produce a legal product in prematurely. icaid Program is our joint State-Fed- this country. It is interesting, in this S5586 CONGRESSIONAL RECORD — SENATE June 4, 1998 great agreement—I guess I should qual- people are talking about amendments years, in 10 years, maybe 3 years, ify ‘‘great’’—in this historic agree- to make the bill better, and the bill eliminate the problem. For example, if ment, the tobacco farmers and the ag- was brought to the floor recognizing it we knew where in the brain addiction ricultural community were not rep- was not a perfect bill, that it was im- to nicotine actually occurs—and let me resented at that table. portant for that amendment process to say that there are ways to detect that Regardless, the other three groups— take place to modify it, to improve it, through PET scanning, positron-emis- the public health group, the industry to make sure that it does achieve the sion tomography, today—we know itself, the attorneys general—sat down, objectives of decreasing youth smoking roughly in the brain where the addict- and the basic elements of that, and I over time. I encourage my colleagues ive center to nicotine actually occurs. would say historic, June 20 settlement to come forward to participate with With the rapid advances made in included a number of things: No. 1, in- their amendments so we can achieve science, with the appropriate focus and dustry payments of $368.5 billion, that objective and, sometime within the appropriate resources, it is not far- agreed to by industry, members of the the next several days or next several fetched that we will identify not only plaintiffs’ bar, the attorneys general, weeks, bring this to some resolution. the location, where we have taken the and the public health groups. That I do believe, as I said, it takes a com- first steps, but the actual receptors, $368.5 billion was to be paid over about prehensive approach. I think we do and design a drug, a chemical, a hor- 25 years. It would be funded by what have to address, first, the advertising mone to go to that particular site and calculated out to be raising the price of targeted at children. An article in the turn off the addictive potential, the ad- cigarettes by 70 cents per pack over a Journal of the American Medical Asso- dictive connections that cause that 8- 10-year period. ciation of February 17 stated very year-old or that 10-year-old who starts Second, an important component, I clearly that advertising is more influ- to smoke to smoke forever out of their believe, is the advertising restrictions. ential than peer pressure in enticing control. The industry came forward and said our children to try smoking, and it es- That one little bit of research could that, we will voluntarily limit our first timated—and I recognize these esti- solve this whole problem. We can’t give amendment rights by refocusing adver- mates are really all over the board— any statistic probability that that re- tising, if the remaining aspects of that but it estimated that about 700,000 kids search will result in that sort of effect, agreement would go into effect. a year are affected by advertising. Big but the potential is there. It takes that Third, there were youth access provi- debate. We have talked about it a lot emphasis on that particular dimension, sions and really some pretty tough li- over the last several weeks. Is it adver- moving there and saying we do need to censing requirements for retailers who tising? Is it peer pressure? How do you put the appropriate funds there, that sell tobacco. All of us know the prob- control peer pressure at that very some effort in this comprehensive ap- lem we have with access today. If you tricky age of walking through adoles- go into any community and ask a proach must be directed to research. A cence? They are inextricably tied to- young 16-year-old or 15-year-old, strong commitment to basic science gether. If you have very effective ad- ‘‘Could you get a pack of cigarettes?’’ and behavioral research is critical. vertising that makes smoking look Such focused research made possible they would say, ‘‘Yes, without a prob- by this bill might even uncover a pill. lem.’’ cool and makes you part of a group and Fourth, that June 20, 1997, settlement makes you feel good at 12 years of age, I can almost see a day where people had $2.5 billion per year for smoking then peer pressure builds. If somebody will smoke for 6 months or smoke for a cessation programs, public education asks is it peer pressure or advertising, year. If we can kill that addictive po- campaigns, and State enforcement. It it is very confusing. tential, that 6 months to a year might gave FDA authority to regulate to- In our business, in the political busi- not have the same impact on one’s cor- bacco and smoking. It had no class ac- ness, in public service, we know the ef- onary arteries in the development of tion suits or suits by any government fects of marketing. We know that kids atherosclerotic plaques—hardening of entity. It had immunity for the indus- are targeted, and we know that builds the arteries—which cause heart at- try from all punitive damages for past and establishes peer pressure which tacks and ultimately death. actions. Individuals were allowed to does affect somebody at that age, in Will we get there? We don’t know un- bring suits to cover compensatory adolescence, when they are reaching less we focus research in that area, and damages for past conduct and compen- out for identity and for security and right now we do not have sufficient re- satory and punitive damages for future for acceptance. Therefore, either deal- search there. We do need to look at cer- conduct. ing directly with the industry or indi- tain behavioral research: How can we Because that settlement required the rectly, we have to have the industry stop people from smoking who are ad- enactment of Federal law, it came be- agree not to target kids. Our society dicted to smoking? We just don’t know fore the U.S. Congress. We are here simply must stop glamorizing smoking very much about that. today in large part because that June in the way that it does today, which in- Later today, I think we will be talk- 20 settlement requires us to be here or creases the peer pressure. This applies ing a lot about drugs, other drugs—not it just doesn’t occur. Implementing the to television; it applies to movies; it just nicotine, not just cigarettes—and provisions of that settlement or imple- applies to 30-second spots; it applies to the importance of developing a more menting provisions similar to it does billboards. We have to stop that mar- comprehensive policy. I welcome that require Federal legislation. keting directly to children, and I be- opportunity, again, because I have We had committees that had jurisdic- lieve the industry has to take the lead youngsters. I have three boys, who are tion over several provisions in this in that regard. going through this period of adoles- June 20 agreement. Judiciary had a Secondly, to have a truly comprehen- cence, who are going to be tempted and role, the Labor Committee had its ex- sive program, we do have to have a exposed to all of the seductive adver- pertise in the FDA, the Finance Com- strong public health initiative, includ- tising, peer pressure, wanting to be ac- mittee had jurisdiction over inter- ing tobacco-related research, including cepted, that we have all gone through national trade aspects, the Commerce tobacco-related treatment, and includ- and most of our children go through. Committee had jurisdiction over the li- ing tobacco-related surveillance. It is A comprehensive approach: The re- ability and interstate commerce exper- fascinating in terms of how we would search, the scientific research, smok- tise, the Agriculture Committee had a use certain moneys, because a number ing cessation programs, behavioral re- keen interest in the effect of this type of people want to use certain moneys search, the addictive potential, the ad- of really unprecedented legislation on for programs totally unrelated to pub- vertising that I spoke to. farmers, all of which ultimately were lic health initiatives, totally unrelated The third component is that of ac- pulled together—at least that expertise to research. cess. It is too easy today. We held hear- was pulled together—through the Com- If we just step back and imagine ings in our Subcommittee on Public merce Committee and bringing it to what could be done if moneys were Health and Safety, which I chair, in the floor to be amended accordingly. spent effectively and if there were ap- the Labor Committee and had some We are right now in the middle of propriate moneys available for re- really powerful, powerful testimony that amendment process. A number of search, we might—we just might—in 5 come forward by the users, by those June 4, 1998 CONGRESSIONAL RECORD — SENATE S5587 young adolescents who have started to We have two competing amendments effective and responsible we can be if smoke. We heard chilling testimony or proposals right now that are being we have a comprehensive settlement. about how easy it was to purchase to- considered. I am very hopeful that an And that is what it is going to take bacco products. agreement can be reached between —public health initiatives, appropriate We can do a great job in a small com- those two. They have very different research, addressing the issue of ac- munity. If there are 12 places where concepts. On the other hand, both have cess, and addressing the issue of adver- one can buy tobacco, we can have 5 of as their goal to do what is in the best tising. We must have an industry that those really enforce the access laws. interest of those hard-working men and does not market to kids. We have to Just imagine 12 convenient stores in a women who are in the farming commu- have the cooperation of the industry. community. You can have five that nity, who, through no fault of their Mr. President, let me just make one really stick to the law. You can have own, we have this targeting of the final comment that is on the Food and another five that do pretty well. But if youth by the industry, who, through no Drug Administration. I have been very there is just one in that community fault of their own, affect this idea of active in working to see that the Food that continues to sell cigarettes, for easy access. They are literally getting and Drug Administration is the agency whatever reason, the access programs up every morning, going out, working that would oversee whatever regula- don’t work at all. We need to have hard in the fields to produce a legal tion we pass on the floor of the U.S. more effective access. product. I am very pleased that this Senate and through the U.S. Congress. Nickita from Baltimore, who is now group is being addressed. I look for- The approach was to set up a separate 18 years old, started smoking when she ward to having some resolution of the chapter within the Food and Drug Ad- was 14 years of age. She testified that two competing groups. ministration rather than try to regu- she would normally get her cigarettes Mr. President, I will wrap up my late tobacco or cigarettes through a from the store. She testified that she comments shortly because other people three or four sentence clause that is never had a problem buying cigarettes are on the floor. I think this bill is not existing in the device aspects of the in the store. In fact, ‘‘People in my perfect yet. I think we need to look Food and Drug Administration legisla- community, as young as 9 years old, go very closely at how we have designated tion today. to the store and get cigarettes. They whatever funds are generated by this We did this for a number of reasons. simply do not ask for IDs,’’ she said. particular bill and to look at what pro- I have outlined those reasons on the The lesson I learned from this testi- grams they create. floor today. I am very pleased where we mony is that we must enforce youth The version of the bill on the floor stand with that today, in terms of set- access laws. We must make it impos- now, unlike the original Commerce ting up a new chapter that recognizes sible for children to buy cigarettes in version of the bill, is much, much bet- that tobacco really is a unique product. any neighborhood in this country. It is ter in that most of the huge bureauc- It is not a device to be regulated like a really shameful that in America in 1998 racies that came out of the Commerce pacemaker or like an artificial heart a teenager can purchase tobacco in any Committee bill have been eliminated, device or like a laser. And that is neighborhood in the United States of have been reduced. I think there are where an attempt was made by the ad- America. still a number of those programs that ministration to regulate tobacco. There are three elements—access, ad- we need to go back and address. Are there parts of that that might be vertising, public health and basic Some people have come to the floor improved? I think we can consider that science initiatives. In this whole arena and have basically said that the bill on as we go through the amendment proc- of access, price is an issue. I voted the floor is merely an attempt to de- ess. I still have some concerns with against the tax of $1.50 that was pro- stroy an industry that is producing a some parts of the Commerce bill. I look posed on this floor 2 weeks ago very legal product by raising the price too forward to seeing them modified. simply because price addresses one as- much. I think this is a legitimate con- I think as a heart surgeon, as a lung pect of the three aspects that I think cern. We have had a countless number surgeon, I have a real obligation to are important to decrease youth smok- of financial experts present data; some point out that smoking does kill peo- ing. Price does affect purchasing. While have had a vested interest, some have ple— there is no question—No. 2, that it is one of the levels, one of the fac- not. A number of them have come be- tobacco is a legal product in this coun- tors, it is not the only factor. fore the several committees who have try—and I think it should stay a legal Consumption, though, had been de- held hearings on this jurisdiction, and product in this country where adults creasing in the 1970s. However, between it really seems nobody can answer the who have the maturity, have the edu- 1980 and 1993, the downward trend real- question of the appropriate price and cation to make choices for themselves ly accelerated, with consumption fall- what a price increase of 50 cents or 70 should have that opportunity—but, ing by 3 percent a year at the same cents or $1 or $1.50 will do on the indus- thirdly, I feel very strongly that we time that the inflation-adjusted price try itself. need to address youth smoking and do of cigarettes increased by 80 percent. We do know one thing; and that is our very best as a nation for our chil- In addition, in the early 1990s, we saw that the industry at one time agreed, dren and for that next generation price cuts, and consumption leveled off back in June, to a $368.5 billion ex- through a comprehensive strategy to with only modest decreases in the price change for some assurances that they work to reduce youth smoking. until 1996. Then in 1997, prices rose by would have some predictability in fu- Mr. President, we have two col- 2.3 percent, and consumption fell again ture lawsuits. Now that has been radi- leagues on the floor, and I would sim- by 3 percent. cally changed at the end of 2 weeks ply ask unanimous consent if they Expert testimony provided in hear- ago. We need to all get together to see could limit their comments or let me ings before us, based on data from both what that next step should be, what inquire in terms of, from each of them, this country and others, clearly dem- further amendments need to be applied. how long they would require? I would onstrates that the price of cigarettes Again, personally, I believe that the in- like to have some limitation because does affect consumption. But price dustry has to be at the table, has to we want to get to other amendments alone simply will not solve the prob- agree not to target the youth today. early this morning. lem; that a comprehensive approach is Black market—something that is Mr. DURBIN. I thank the Senator. I necessary. very, very real. If the price is raised would be happy to limit my remarks to Mr. President, I think the bill on the too high, at least based on the testi- no more than 30 minutes. floor is a good start in addressing, in a mony that has come before our com- Mr. ASHCROFT. The same. comprehensive way, this issue of de- mittees, a black market would most Mr. FRIST. I will yield 30 minutes to creasing youth smoking. It also ad- certainly occur, and then we would ul- both of my colleagues on the floor. At dresses an issue that was ignored by timately end up destroying exactly that time, I reserve coming back and the June 20 settlement, an issue that I what we are trying to achieve—that is regaining the floor at that time. mentioned—that of the agricultural a reduction in youth smoking. The PRESIDING OFFICER. Is there community and that of tobacco farm- Mr. President, I guess in closing my objection? Without objection, it is so ers. remarks I just want to emphasize how ordered. S5588 CONGRESSIONAL RECORD — SENATE June 4, 1998 Several Senators addressed the responsible for the transaction. There keep the car repaired, occasionally Chair. is no disincentive for teenagers to try scraping together enough for a modest The PRESIDING OFFICER. The Sen- and purchase cigarettes in this bill. day off or a vacation, would suddenly ator from Missouri. Two percent of retail cigarette sales be subject to a massive new tax, 60 per- Mr. ASHCROFT. Mr. President, I rise are made to minors. Adults purchase 98 cent of which would fall on them. Some today to discuss the tobacco bill. And I percent of all cigarettes sold in retail households would see their taxes in- wish to address the massive tax in- stores. Under this bill, we are creating crease by more than $1,000. Moreover, crease that is in this bill—tax increases a massive tax increase on 98 percent of this new tax would be levied on money that are targeted against the lowest in- smokers in order to try and discourage that has already been subject to the in- come individuals in America: hard- 2 percent of all the retail sales. There come tax. If you are buying cigarettes working citizens who earn primarily is sound evidence that the 2 percent and you have an additional $1.10 to pay, less than $30,000 a year. It is a massive will not be discouraged. In Washington, it is a tax on money you have already tax increase that is going to be used to taxes and spending are the only things paid tax on. Households earning less expand the Federal Government, just more addictive than nicotine. than $50,000 would pay seven times as when the American people continue to Preliminary reports estimated this much in new tobacco taxes than house- make it clear that they are tired of legislation would increase taxes $868 holds earning $75,000 or more. Government imposing its decisions on billion. We now know that this legisla- According to the Congressional Re- our daily lives. tion would raise taxes $885 billion and search Service, tobacco taxes are per- Just last week there was an an- create new government programs with haps the most regressive taxes cur- nouncement of a $39 billion surplus in funding locked in for 25 years. It cre- rently levied. In the United States of 1998 and a $54 billion surplus in 1999. ates a huge government regulatory America where, we already have the Congress should be debating how to re- scheme the likes of which we have not highest taxes in history, we are now turn this money to the taxpayers. We seen since the Clinton proposal to per- projecting a massive tax increase on should not be debating how to siphon petrate a national health care system individuals least capable of paying. more out of the pockets of working from the Federal Government. While those earning less than $10,000 Americans. This bill is a tax bill, pure and sim- make up only 10 percent of the popu- It is also possible to discuss the inev- ple. It is a tax bill on Americans who lation, 32 percent of those people itable black market that would result are already overburdened with taxes. smoke. The current tobacco tax rep- from the policies in this bill, even Americans today are working longer resents 5 percent of the smokers’ in- come in this category. Those making though my colleagues and the adminis- and harder than ever before to pay between $10,000 and $20,000 a year make tration continue to ignore this threat their taxes. Tax Freedom Day this year up 18 percent of the population. How- to American neighborhoods of creating was less than a month ago, on May the ever, 30 percent smoke. The current to- a black market with the high taxes in 10th. It was a record year. Americans bacco tax makes up 2 percent of a this bill. I will also discuss the effect of worked longer into the year this year smokers income in this category. a price increase on teenage smoking to pay their taxes than ever before. Therefore, this bill amounts to a tax rates. The hard work of the American people, increase on 31 percent of Americans Mr. President, along with my col- let me say again, the hard work of the who earn under $20,000 a year. House- leagues, I am truly concerned about American people allowed the President holds earning less than $10,000 a year teen smoking. However, I do not be- just last week to announce a $39 billion would feel the bite of this tax increase lieve that teen smoking is the focus of projected surplus in 1998 and a $54 bil- most of all. These households, it is es- this legislation. Under the guise of re- lion surplus projected for 1999. Yet here timated, would see their Federal taxes ducing teen smoking, proponents of we are a week later continuing to talk rise 35.1 percent. this bill are willing to increase taxes not about how to return the surplus to In most areas of the country, some- on hard-working Americans by well the people, but how to siphon more out one earning $10,000 a year is well below over $800 billion. That is well over of their pockets. As currently drafted, the poverty line. We spend much of our three-quarters of a trillion dollars. the proposed tobacco bill is nothing time in this body trying to find solu- Under the guise of reducing teen more than an excuse for Washington to tions for those in this income brack- smoking, proponents of this bill sup- raise taxes and spend more money. et—we have tax credits, welfare pro- port a massive increase in the size of In the 15 years prior to 1995, Congress grams, educational grants, job-training the Federal Government—17 new passed 13 major tax increases. In fact, programs. They cost billions of dollars boards and commissions, which is a last year’s Taxpayer Relief Act was the a year. We try to lift people out of modest estimate. And then in response first meaningful tax cut since 1981. As their poverty, out of that income to the identification of those boards currently drafted, the tobacco bill bracket. However, today, Members of and commissions, some in support of erases that relief. We must stop that this body are enthusiastically saddling this bill have decided to say they would from happening. We must not undo the them with a huge tax burden of over take out those boards and commissions modest gains we gave to the American $800 billion focused on those least capa- and just leave authority for agencies to people just last year. We certainly can- ble of paying. Washington politicians create within themselves the capacity not relieve them by imposing another and bureaucrats are saying they know to do what the boards and commissions $885 billion in taxes on them. To para- better how to spend the resources of were designed to do. Instead of having phrase President Reagan, the whole the American people. boards and commissions that are ac- controversy comes down to this: Are Let me share the impact this tax in- countable and identifiable, you have you entitled to the fruits of your own crease will have on the constituents of stealth boards and commissions that labor or does government have some the people in Missouri. Using data pro- are hidden in the agencies. I don’t presumptive right to tax and tax and vided by the Centers for Disease Con- think making them indistinguishable tax? Who will pay the $800-plus billion trol, it is clear the tobacco legislation is a way to say that government isn’t in taxes contained in this proposed leg- would be an annual $382 million tax on growing. islation? people in Missouri. Of that amount, Proponents of this bill claim it is The tobacco legislation is a massive $227 million would be paid by house- necessary to curb teen smoking. What tax increase that would be levied holds earning $30,000 or less. This is a this bill is necessary for is to feed the against those least capable of paying. conservative estimate. This assumes tax-and-spend habit of individuals in About 60 percent of the tax increase that each smoker in Missouri smokes Washington. would fall on families earning $30,000 a only one pack a day. For someone who Although Congress has the authority, year or less. That is a shocking figure. smokes two packs daily, the $1.10 per we do not even make it illegal for mi- What it basically says is these families pack tax increase contained in the to- nors to possess or use tobacco in the with less than $30,000, struggling to put bacco legislation would amount to a District of Columbia in this bill. We clothing on the backs of their children, tax increase of $803 annually. only have rules regarding the point of food on the table, to pay the rent, to Let’s look at how this will impact sale. Even then, we only make retailers have the money for transportation, to other States. Arizona, 22.9 percent of June 4, 1998 CONGRESSIONAL RECORD — SENATE S5589 the adults smoke; $227.3 million tax in- annual tax liability would balloon those payments—taxes—are to be crease on Arizona, $164.7 million on $3,700 as a result. The marriage penalty passed through to consumers—under a those with incomes of $30,000 or less. In led them to rethink their decision to penalty if it is not done. Texas, 23.7 percent of adults smoke; get married. It has been said that industry is the $1.2 billion tax increase on Texas, $1.2 A marriage penalty exists today be- group that is convincing people that billion tax increase on the people of cause Congress legislated ill-advised this is a tax bill. But we all know that Texas, with three quarters of a billion changes to the Tax Code in the 1960s. industry can’t make it a tax bill, and being levied against those who earn This is an example of Washington’s val- Senators can’t say it is not a tax bill if $30,000 or less. ues being imposed on America instead it is a tax bill. It is a tax bill. It re- This bill contains massive tax in- of America’s values being imposed on quires consumers to spend additional creases that are going to be used to ex- Washington. sums of money and to send them to pand the Federal Government just Over the next 5 years, the Federal Washington so that government pro- when the American people continue to Government is expected to collect $9.3 grams can be extended. make it clear that they need relief. trillion in taxes from hard-working Those who support this bill would Some people ask, where is all this Americans. Completely eliminating the like for the American people to believe money coming from when we talk marriage penalty would reduce that that this is tough on tobacco. The about our surpluses? I can tell you total by only $150 billion, or only 1.6 American people are beginning to find where the money comes from—it comes percent. out that tobacco companies won’t bear from the hard work, the sacrifice, the Now that taxpayers have provided the costs of these payments. Consum- ingenuity, the efforts of Americans. It the Federal Government with a surplus ers will. This bill requires that con- is not our money. It is their money. It that may be as much as $60 billion this sumers will be those who are required is not Washington’s. We should be dis- year alone, Congress has no excuse for to put up the money—the $800 billion- cussing how to leave the money where withholding tax relief from American plus that comes in the mandatory pay- it belongs. Instead, we are discussing families. ments, the taxes that are occasioned how to take more money. The power to tax is the power to de- by this bill. I have an amendment that I plan on stroy. The average dual-income house- What will be the impact on tobacco introducing later in this debate that hold spends a far larger share of its in- companies? In September of 1997, the will accomplish the goal of leaving come on taxes than it does on food, Federal Trade Commission issued a re- money in the pockets of the taxpayers. shelter, clothing, and transportation port entitled ‘‘Competition and the Fi- It will give much-needed tax relief to combined. nancial Impact of the Proposed To- Americans in a way which will provide With taxes at these levels, no wonder bacco Industry Settlement.’’ The re- the greatest relief to those who will be families are finding it necessary to port was done at the request of the hardest hit under the bill. I believe, as send both spouses into the workplace. Congressional Task Force on Tobacco many do in this body, that if this bill One of the ways in which the marriage and Health. This report analyzed the is allowed to increase taxes, that reve- penalty manifests itself is that the economic impact of the proposed set- nue should be used to relieve married standard deduction for a married cou- tlement on cigarette prices, industry couples of what might possibly be the ple is less than that for two singles. profits, and Government revenues. most indefensible and immoral tax of That means if you are married and you This tobacco legislation was built upon the proposed settlement, but it is our Tax Code. This is a perfect example file a joint return, the standard deduc- not exactly the same. But this report of Washington’s values being imposed tion is not double what it was when was based upon the annual payment, on America instead of America’s values you were single. Again, let me repeat look-back provisions, and tax deduct- being imposed on Washington. Ameri- this staggering fact. Last year, 21 mil- ibility of the payments made by the to- cans value marriage; Washington taxes lion married couples collectively paid a bacco companies. marriage. $29 billion tax. They paid $29 billion There are several important conclu- The marriage penalty tax creates a more than they would have paid had sions in this report: situation in which 21 million couples they been single. First: ‘‘The major cigarette manufac- pay $29 billion more than they would I will offer an amendment that will turers may profit from the proposed have paid had they been single. The substantially reduce the marriage pen- settlement by increasing the price of marriage penalty, on the average, is alty. It will do so by making the stand- cigarettes substantially above the about $1,400 per family. This is grossly ard deduction for married couples amount of the . . . payments that are unfair and is an assault on the values twice what the standard deduction is to be paid to the public sector.’’ of the American people. Consider a typ- for single people. It could be profitable for the tobacco ical couple in which each person earns Members of this body have been argu- companies. This bill that is so hard on an annual income of $35,000. Under cur- ing that there is no tax in this bill, the tobacco companies may result in rent law, if the couple were to wed in only an increase in tobacco prices to increased profits for the very tobacco 1998, they would pay $10,595 in Federal deter smoking. In fact, the Finance companies we are supposed to be hurt- income taxes, assuming they were Committee, in its mark, at least tried ing. childless and they take the standard to level with the American people by Second, the report concludes: ‘‘Even deduction. If, instead, they chose to re- reporting out a bill that called it a tax. assuming that prices increase by no main single, their combined tax bill Webster’s Dictionary defines a tax as a more than the annual payments, the would amount to $9,117. In other words, ‘‘compulsory payment, usually a per- major cigarette firms may profit they would pay $1,478, a 16-percent pen- centage, levied on income, property substantially . . . through limitations alty for being married. values, sales prices, etc., for the sup- on liability and reductions in advertis- As you might expect, people often port of government.’’ ing and litigation costs.’’ modify their behavior to avoid paying In this bill we have a compulsory Well, that is a very serious sugges- taxes. In fact, it is one of the assump- payment. The bill then requires that tion. And that comes from the Federal tions of the tobacco legislation that the cost of these payments be passed Trade Commission of the United people would modify their behavior— on in the form of price increases to States. quit smoking—if we raise taxes on consumers. It even penalizes companies Again, the actual elements of this cigarettes. Does the Tax Code really in- if they fail to do so. These payments bill that are supposed to show that fluence moral decisions and prevent are then used to fund massive pro- Congress is ‘‘tough on tobacco’’ may, couples from getting married? Trag- grams for Federal and State govern- according to the Federal Trade Com- ically, yes. Some couples simply can- ments. mission, actually enable tobacco com- not afford to bear the extra burden of Well, if it walks like a duck, talks panies to profit substantially by reduc- the marriage penalty. Just ask Sharon like a duck, and sounds like a duck, it ing litigation costs and by reducing the Mallory and Darryl Pierce of Conners- is a duck. So if it ‘‘walks’’ like a tax costs of advertising. ville, IN. They were planning to get and acts like a tax, it is probably a tax. The report then mentions the affect married when they learned that their This is a tax and in law provides that of price increases on smokers. It says: S5590 CONGRESSIONAL RECORD — SENATE June 4, 1998 The overall demand by adults for ciga- could be felt within a single generation, and status and the like and making a state- rettes is inelastic, or relatively insensitive we could see nicotine addiction go the way of ment, which smoking frequently is for to changes in price. Most adult consumers smallpox and polio. without a price increase. young people. will continue to smoke notwithstanding a These statements were made about The debate on this floor has as- significant increase in price. regulations that contained absolutely As a result, an industry-wide price increase sumed—a dangerous assumption, reck- would be profitable for the companies, even no price increase—no massive tax on less, and irresponsible intellectually— though some smokers would react to the the working people of America; no that for every 10-percent increase in higher prices by smoking less or quitting al- massive taking by the government of price you get a 7-percent reduction in together. over three-quarters of a trillion dol- youth smoking. Now, the evidence is not clear that lars; no extension of 17 new boards, Studies conducted by economists at raising prices reduces teen smoking commissions, and agencies for the gov- Cornell University and the University rates. Mr. President, this bill is being ernment. of Maryland, and funded by the Na- considered on the Senate floor. It is Also, remember that these regula- tional Cancer Institute, question the being considered and being sold to the tions were supposed to reduce youth connection between youth smoking, American people as the only way to re- smoking by 50 percent over 7 years, prices, and tax rates. while it has been claimed, that this duce youth smoking. They are being THE CORNELL STUDY bill—containing massive tax in- told that we can justify an $800 billion After following 13,000 kids for 4 years, creases—will reduce teen smoking by tax increase that is necessary to get Dr. Philip DeCicca of Cornell Univer- 60 percent over 10 years. rid of the disease of addiction. How- sity, in a National Cancer Institute Dr. Kessler was widely cited as a sup- ever, after looking at the evidence, funded study—a public health study— porter of the amendment offered on there is no reason to believe that such found ‘‘Little evidence that taxes re- this floor last week that would have in- a tax increase is the answer to elimi- duce smoking onset between 8th and creased the tax on cigarettes by $1.50 nating teen smoking. 12th grade.’’ rather than the $1.10 already contained Mr. President, I inquire as to the The economists that conducted this time remaining in my opportunity to in the bill as necessary to reduce teen smoking, which is substantial. study presented their results between speak? the relationship between higher to- The PRESIDING OFFICER. Nine Yet, when those regulations were en- acted he never complained that this bacco taxes and youth smoking to the minutes. American Economics Association an- Mr. ASHCROFT. I thank the Chair. regulation would not have been effec- tive in reducing teen smoking because nual meeting in January 1998. This is Food and Drug Administration regu- not a dated study. lations, which were designed to curtail it did not contain such a massive tax increase. The study concluded that higher teen smoking and which were sug- taxes have little effect on whether gested by a Cabinet Secretary who About these regulations, President Clinton stated: young people start to smoke. helped promote these regulations, did They concluded that ‘‘[T]axes are not not contain price increases. The most That’s why a year ago I worked with the FDA, and . . . a nationwide effort to protect as salient to youth smoking decisions striking evidence that significant price our children from the dangers of tobacco by as are individual characteristics and increases are not necessary to reduce reducing access to tobacco products, by pre- family background.’’ smoking is a very recent attempt by venting companies from advertising to our ‘‘[W]e find little evidence that taxes this administration to address the children. The purpose of the FDA rule was to reduce smoking onset between 8th and youth smoking issue. In 1996, regula- reduce youth smoking by 50 percent within 7 12th grades,’’ and estimated that a $1.50 tions promulgated by the FDA were years. tax increase would decrease the rate of touted as being historic. It was esti- There was no complaint by the Presi- smoking onset by only about 2 percent- mated to reduce youth smoking by 50 dent that these regulations were insuf- age points—from 21.6% of 12th graders percent over 7 years, and they didn’t ficient because they did not contain a who start smoking currently to 19.6% include price increases. price increase. of 12th graders. The important aspect of these regula- What has changed in just 2 short ‘‘Our data allow us to directly exam- tions is that they contain no price in- years? ine the impact of changes in tax rates crease on smokers in the general popu- Policymakers in Washington have on youth smoking behavior, and our lation. As you know, this legislation is found a cash cow to pay for their pet preliminary results indicate this im- raising the prices on 100 percent of the programs that the President said he pact is small or nonexistent.’’ smokers to try to discourage the utili- wanted, but which he would find in- Here is the best data we have. The zation of cigarettes by 2 percent of capable of moving through the ordi- most recent studies indicate that a those who purchase. There was no dis- nary budget process. massive increase of three-quarters of a The evidence as to whether price in- cussion in the regulations of a huge trillion dollars plus on the taxes of the creases reduce youth smoking is ten- price increase—a massive tax increase. American people will have little im- tative—at best. And about this regulation, the Sec- pact or a nonexistent impact in reduc- The second issue I want to address retary of Health and Human Services, ing youth smoking. concerning the need to increase taxes Donna Shalala, stated: In conclusion, the economists stated on the American people by $868 billion This is the most important public health that the study ‘‘raises doubt about the is whether price increases actually re- initiative in a generation. It ranks with ev- claim that tax or price increases can duce teen smoking. erything from polio to penicillin. I mean, substantially reduce youth smoking.’’ this is huge in terms of its impact. Our goal My colleagues have been arguing is very straightforward: to reduce the that the studies show conclusively that MARYLAND STUDY amount of teenage smoking in the United price increases reduce youth smoking. Economists at the University of States by half over the next 7 years. However, that simply is not the case. Maryland and the University of Chi- It is a laudable objective, and appar- At best, the studies are inconclusive. cago conducted a similar study that ently it is believed to be attainable by At worst, they show little correlation analyzed data concerning more than the Secretary of Health and Human between price increase and a reduction 250,000 high school seniors for the pe- Services without a massive tax in- in youth smoking. riod 1977–1992—the largest such sample crease or price increase. The debate on this floor has assumed ever used for a study on this subject. David Kessler, one of the strongest that for every 10 percent increase in They found that the relationship be- proponents of this bill, was the Direc- price reduces youth smoking by 7 per- tween price and youth consumption is tor of the Food and Drug Administra- cent. ‘‘substantially smaller’’ than suggested tion when these regulations were pro- Frankly, I think the average citizen by previous studies. mulgated. He stated: knows that young people who are will- In addition, real world experience Don’t let the simplicity of these proposals ing to pay $150 a pair for sneakers are confirms the uncertain relationship be- fool you. If all elements of the anti-smoking probably not very price sensitive when tween higher tobacco taxes, prices and package come into play together, change it comes to other factors that relate to youth smoking. June 4, 1998 CONGRESSIONAL RECORD — SENATE S5591 CALIFORNIA have less ‘‘disposable income’’ than public transportation; it was totally In 1989, California increased its ciga- adults, but their spending is almost en- unnecessary; it discriminated against rette excise tax by 25 cents per pack, tirely discretionary. the rights of smokers, and on and on but there is no evidence that youth The CDC has compiled data on brand- and on. smoking declined. This was an 11 per- preference that supports the conclusion Well, Mr. President, it was our good cent increase. Therefore, under the that young people are not particularly fortune in the House of Representa- analysis that elasticity of teenage price sensitive. tives to have a number of Members of smokers is .07, there should have been The ‘‘price value’’ or discount, seg- Congress, both Democrats and Repub- a decrease of at least 7 percent. ment of the cigarette market com- licans, who, for the first time in mod- We are operating under the assump- prised 39 percent of the overall ciga- ern memory, rejected these pleas from tion that 25 cents a pack would have rette market in 1993. Yet, according to the tobacco lobby and enacted legisla- resulted in a 16-percent or more de- the CDC, less than 14 percent of adoles- tion a little over 10 years ago that crease in the number of youth smokers. cent smokers purchased generic or banned smoking on airplane flights of 2 The truth of the matter is there was other ‘‘value-priced’’ brands—just one- hours or less. It was a breakthrough. It an 11-percent increase. Therefore, third the percentage. was the first time the tobacco lobby under the analysis that the elasticity The point was echoed by the govern- lost. Those who joined me in that ef- of smokers is .07, there should have ment’s lawyer defending the FDA to- fort stuck their necks out politically. been a decrease of substantial propor- bacco rule, who told the U.S. District It wasn’t considered to be very smart tions. Court, ‘‘[P]rice, apparently has very politics to oppose tobacco. This, in However, as of 1994, researchers were little meaning to children and smok- fact, was the largest, most powerful, most well funded lobby in Washington. ‘‘unable to identify a decline in preva- ing, and therefore, they don’t smoke Fortunately for us, Senator FRANK lence [among 16 to 18 year olds] associ- generic cigarettes, they go for those LAUTENBERG of New Jersey and his ated with the imposition of the excise three big advertised brands.’’ In Canada, in Great Britain, the Cor- friends in the Senate joined us in the tax.’’ nell study, Maryland University, the battle and together we successfully CANADA Chicago study, the situation in Califor- achieved our goal. Today, virtually all The most commonly cited real world nia, we don’t have a clear understand- domestic airline flights—in fact, I situation is our neighbor to the ing that a rise or an increase in taxes think all of them—are smoke free. It is North—Canada. would in fact result in a decrease in now becoming a trend worldwide. In Canada, the federal government youth smoking. That battle and that victory, I think, increased cigarette taxes in several It is with that in mind that I feel we set the stage for where we are today, stages in the late 1980s and early should reject this bill as a massive tax albeit a small victory in comparison to 1990s—from $10.75 per 1,000 cigarettes to increase, and if there is a massive tax our goal in this debate. But it would $24.34 in 1986, then to $38.77 in 1989, and increase in this bill, that tax increase have been unimaginable 10 or 11 years to $62.90 in 1991. should be sent back to those who are ago to think that today in the Senate Although it has been stated on this most hurt by it—low-income individ- we are debating a bill involving to- floor, by proponents of this legislation, uals—by eliminating a marriage pen- bacco and health of the magnitude of that smoking decreased during that pe- alty by raising the standard deduction the McCain bill which comes before us. riod, they fail to talk about the years for married couples to exactly double JOHN MCCAIN is our Republican col- 1991 to 1994 when the tax rates were the that enjoyed by single taxpayers. league from the State of Arizona. I ad- highest in that nation’s history. I thank the Chair for the time. I mire his grit and determination in During that period, smoking rates yield the floor. bringing this bill to the floor despite a among 15–19-year-olds rose from 21 to Mr. DURBIN addressed the Chair. lot of opposition, primarily but not ex- 27 percent. That is a 25-percent in- The PRESIDING OFFICER. The Sen- clusively, from his own side of the crease. ator from Illinois is recognized for 30 aisle. If the argument that rising prices minutes. When you think in terms of what we will reduce teen smoking, it stands to AMENDMENT NO. 2438 are setting out to achieve, it is sub- reason that youth smoking should in- Mr. DURBIN. I thank the President. I stantial. It is revolutionary. It is long crease as prices fall. However, a year am happy to stand this morning in sup- overdue. Our goals are simple: reduce and a half after reducing—signifi- port of the pending amendment before teen smoking, invest in public health cantly—tobacco taxes in Canada, ac- the U.S. Senate to this tobacco legisla- research and programs to help smokers cording to the ‘‘Survey on Smoking in tion. It is an amendment offered by quit, and protect tobacco farmers and Canada,’’ teen smoking ‘‘remained sta- Senator DEWINE, Republican of Ohio, their communities. ble.’’ and myself, a bipartisan effort to make The focus on children is a good one The fact that is ignored by those who this important bill more effective. and an important one because tobacco argue teen smoking declined in Canada I would like to pause for a moment companies have needed these children due to the significant tax increases is before addressing the amendment and desperately. Each year, they have to that youth smoking declined in the speak to the historical significance of recruit millions of children to replace United States by 30 percent during the this debate. those who are breaking the habit and About 11 years ago I was involved in same period—1977 to 1990—without a those who have passed away. They set a struggle as a Member of the House of price increase. out their net and stretch it out for mil- Representatives to pass one of the first lions and bring in thousands, but they U.K. tobacco-controlled bills ever consid- keep replenishing the ranks; 89 percent Between 1988 and 1996 the per pack ered by the House of Representatives. of all people who ever tried a cigarette price of cigarettes increased by 26 per- In comparison to this bill, ours was a tried by the age of 18. Of people who cent. Although cigarette volumes fell very modest measure. We were setting have ever smoked daily, 71 percent by 17 percent, the percentage of weekly out to achieve something which on its were smoking daily by age 18. Vir- smokers aged 11–16 went from 8 percent face appeared very simple, but turned tually no one starts smoking during in 1988 to 13 percent in 1996. out to be politically very difficult. adulthood. It is a childish decision. It COMMON SENSE What we wanted to achieve 11 years becomes a childish habit, and it con- Common sense also suggests that ago was to ban smoking on airplanes. demns those who fall into the lure of youth are less responsive to tax and You would have thought that we were this nicotine addiction to the likeli- price increases. In an era of $15 com- proposing a second American revolu- hood of a shortened life and more expo- pact discs, $100 video games, and $150 tion. The tobacco lobby organized its sure to disease. sneakers, is it realistic to believe that efforts, found all of its friends, both This McCain bill not only sets out to a few extra dollars on cigarettes a Democrat and Republican, and mar- reduce the number of teen smokers, month will cause youth to stop experi- shaled forces to beat our effort. but it also sets out to invest more in menting with smoking or not to start They predicted that what we were medical research. When I heard my col- in the first place? Young people may setting out to do would create chaos in league from Missouri decrying this bill S5592 CONGRESSIONAL RECORD — SENATE June 4, 1998 and talking about this waste of tax dol- not achieve our goal unless we are very the Federal tax on tobacco products, lars being brought into our Treasury, I serious and very specific. In fact, in they had a 60-percent reduction in chil- paused and thought that we could every State in the Nation it is against dren who were smoking. Kids are price argue—and I will during the course of the law for minors under the age of 18 sensitive; they don’t have all the my remarks—that raising the price of to purchase tobacco products, and yet money in the world, and when the price the product is going to discourage chil- clearly they do on a daily and over- of the product goes up too high, they dren from using it as well as others, whelming basis. So the mere enact- stop using it or reduce their usage. but also the money that is coming in ment of a law has not achieved our Canada is a perfect example. as a part of this bill is going to be in- goal. On the academic front, at the Univer- vested back in America. Why is the McCain bill any different? sity of Illinois, Dr. Frank Chaloupka I would stand by the results of a na- It is different because one important has performed a study in which he has tional referendum on the following facet of this bill is included. It is the surveyed cigarette prices and whether question: Should we increase the Fed- so-called look-back provision. The or not they have any impact on the eral tax on a package of cigarettes, and look-back provision is accountability; percentage of youth smoking. He says: then take a substantial portion of the it is honesty. It says that as the years Based on this research, I estimate that a money raised and put it in medical re- go by we will measure the number of $1.50 increase in the federal cigarette tax, search—send it to the National Insti- teen smokers in America, and if that implemented over three years and main- tutes of Health for research to find percentage does not come down, the to- tained in real, inflation adjusted terms, will cures for cancer, heart disease, AIDS, bacco companies and tobacco industry cut the prevalence of youth smoking in half. juvenile diabetes, Alzheimer’s, and the will be held accountable in terms of The bill sticks to $1.10, and the per- myriad of medical problems that we fees that need to be paid as they miss centage decrease may not be as high or face in this country? I will bet the re- these targets. as dramatic, but clearly it will be a de- sults would be overwhelmingly positive That accountability brings reality to crease. Increasing the cost of the prod- because Americans believe in this in- this debate. We can have the highest uct reduces its usage. vestment. Americans believe that this flying speeches, the most voluminous I find it interesting that my col- bill, in providing money for medical re- rhetoric, and yet we will not achieve league from Missouri talked about the search investment, is money well our goal unless we are specific. Is this so-called cash cow that this $1.10 cre- spent. a matter that should concern us? Con- ates, the billions of dollars brought Smoking cessation programs are part sider this chart for a minute. It is a into the Federal Treasury because of of it, too. I think that is sensible. My troubling commentary on what is hap- this increase in the Federal tobacco father, who was a lifelong smoker, was pening in America. tax. I think this is money that is going a victim of lung cancer and died in his This chart shows the percentage of to be raised for good purposes, to re- early 50s. I saw, even after his diag- high school students who currently duce teen smoking, to invest in medi- nosis, the situation that he faced, the smoke cigarettes. Look at from 1991 to cal research, to invest in smoking ces- craving that he had for this deadly cig- 1997. In every grade, 9th, 10th, 11th and sation, and to help tobacco farmers in arette that had caused him so many 12th, across America, there has been an transition. health problems. I have always had a increase in the percentage of students It is interesting that so many of the sensitivity and a sympathy for smok- who are smoking. In fact, the increase critics of this bill, who argue we need ers who are trying to quit. For some, over the six years has been 30 percent. no tax whatsoever, are anxious to they can just literally walk away from While we have given all these speeches, spend the proceeds from that tax. Ref- it, decide in a minute that tomorrow while we have talked about this prob- erence is made to the marriage pen- they will never smoke another ciga- lem, while the President, the Vice alty, an interesting tax challenge rette. But for others it is virtually a President, the Secretary of Health and which we should take up at some point. lifelong struggle. Human Services, and so many others But the people who are opposed to this The McCain bill puts money into have addressed it, we have, in fact, bill want to take the proceeds from the smoking cessation programs so that seen the children of America ignoring bill and spend them on correcting this smokers nationwide will have the it. They have taken up this habit, and tax anomaly, the so-called marriage means to turn to, to reduce their addic- as they take it up more and more kids tax penalty. They cannot have it both tion to nicotine. My colleague from are vulnerable. ways. You cannot decry this bill as a Tennessee, Senator FRIST, spoke ear- For those who do not think this is a so-called cash cow, raising taxes that lier about the need for medical re- real American family issue, I pose one are unnecessary, and then make all search in this area, for breakthroughs question which I always pose in this sorts of proposals on how to spend it, to stop this addiction. I fully support debate: Have you ever met a mother or and certainly proposals which have lit- him, and I think it should be part of father who came to you at work one tle or no relevance to the question of this effort. We are hopeful these break- morning and with great pride and a whether or not we are addressing the throughs will make it easier for people smile on their face said, ‘‘We have scourge of smoking addiction in this to stop this addiction to nicotine. That great news at home. Our daughter country. is part of this bill. came home last night and she started Let me also speak for a moment to Another provision of the bill protects smoking.’’ I have never heard that. In the Food and Drug Administration. It tobacco farmers and their families. I fact, just the opposite is true. Parents is true that Dr. David Kessler, who is a have never had any crusade against the who suspect their kids have started friend and someone I worked with for tobacco farmers. I understand the dev- smoking are worried. They understand many years, showed extraordinary astation in health that their crop can the danger. They understand the addic- courage, with President Clinton and cause, but I have always felt they de- tion. And they understand better than Vice President GORE, in an initiative to serve a chance to find another liveli- most why this debate is so critically reduce smoking in America. They took hood. This bill gives them that chance. important. a lot of heat for it, because they took That is why I support it. Some argument is made as to wheth- on the tobacco industry and they sug- Let me speak to the amendment be- er or not the increase in the price of to- gested they were going to get serious fore us, the Durbin and DeWine amend- bacco products will reduce usage by about it. They were going to try to ment. It is a look-back provision. children. The Senator from Missouri, view nicotine as the drug that it is. Now, we could give all the speeches who spoke before me, talked about all They were going to try to hold ac- we want to give on the floor of the Sen- sorts of surveys that came to an oppo- countable retailers who were selling to ate and in the Chamber of the House site conclusion. I would point to two children. And they were going to estab- decrying teen addiction to tobacco that confirm the belief in this bill that lish standards across America—for ex- products, addiction to nicotine. We can if you raise the price of the product, ample, asking for identification for the pass all the bills we want saying that children are less likely to use it. purchase of tobacco products. When as a Nation we are going to come to In Canada, just to the north, when they proposed this, their critics went grips with this, and I am afraid we will they imposed a substantial increase in wild: ‘‘Oh, it is overreaching by the June 4, 1998 CONGRESSIONAL RECORD — SENATE S5593

Federal Government. It is just entirely be applied here. Senator DEWINE and I of Minnesota. He hung in there for a too much.’’ Yet they were on the right seek to apply this standard in this situ- long time, and, literally before the jury track, a track which we follow today. ation. We believe—and I hope my col- retired to consider a verdict, he settled Let me try to zero in specifically on leagues will join us in the belief—that the case for over $6 billion for the tax- the Durbin-DeWine amendment. The it is eminently fair for us to hold each payers of Minnesota. That is great fact that this amendment is being de- tobacco company accountable. news for those taxpayers and Attorney bated today has a lot to do with 40 Let us assume, for example, that R.J. General Humphrey. But equally impor- State attorneys general who filed law- Reynolds takes this bill very seriously tant, during the course of his lawsuit suits against the tobacco companies, and says they are going to stop mar- he managed to draw out even more doc- seeking to recover, for their States and keting their product to children, that uments from the tobacco industry. It taxpayers, money that was spent be- they are no longer going to be selling seems that the more and more docu- cause of tobacco products. Last year, Camel cigarettes to kids. They tell mentation we bring out, the more obvi- as a result of the aggregate effort of their retailers: ‘‘Don’t let that pack go ous it is that these tobacco executives these attorneys general, a general over the counter. Don’t sell it to a have been lying to us for decades. They agreement, or settlement, was reached. child. We are very serious about it. Or have, in fact, been targeting kids. Part of that agreement included these we may cut off your access to our prod- We have so many examples. I can’t so-called look-back provisions. The uct.’’ They say to the people who are read them all to you here, but from a agreement said that the tobacco indus- doing the advertising and marketing: 1981 memo, a Philip Morris researcher try was willing to be held accountable ‘‘Get honest about this. Make sure that said: to reduce the percentage of young peo- we don’t advertise around schools. Today’s teenager is tomorrow’s potential regular customer. ple smoking. If they did not reach the Make sure that we don’t have all these goals, they would be penalized. So the promotions with Camel hats and shirts A 1973 Brown & Williamson memo idea of a look-back provision is not and all the rest of it.’’ said: something being foisted on the indus- And let’s say they are successful. Kool has shown little or no growth in share Should that conduct on their part, that of users in the 26-plus age group. Growth is try or something brand new on Capitol from 16 to 25 year olds. . .. Hill; this is an idea that was endorsed positive conduct, be rewarded? Of Remember, at the time, it was illegal by the tobacco companies as part of course it should. In contrast, if Marl- to sell their product to 16-year-olds in their agreement with the State attor- boro and Philip Morris, for example, some States, and, yet, they were mak- neys general. decide they don’t care, they just go on The difference, of course, in the selling as usual, and in fact you see ing it very clear it was part of their marketing strategy. The list just goes DeWine-Durbin approach, is that we kids, more and more kids, turning to on and on of these companies that take this from an industry assessment, their brand, should they be held ac- made conscious marketing decisions to from an industry fee, and say let’s countable for that decision? Why, of sell to children. They knew they had to look, instead, to the specific tobacco course they should. Company-by-com- recruit these kids. If the kids turned companies. Senator MCCAIN of Arizona, pany accountability makes sense. It 18, it was unlikely they would become in his bill, says we should do that for says to the tobacco industry: This is smokers. All of these documents and roughly a third of the penalties in- not just an industry problem, this is a evidence have really made the case. volved. Senator DEWINE and I think it company challenge. Get serious about Our look-back amendment says we should be a larger percentage. Let me it. are going to take this very seriously on explain to you why we think it should I was somewhat amused that the a company-by-company basis. Let me be larger. Richmond, VA, Times-Dispatch yester- address for a moment some of the criti- Consider this for a moment. Some of day came out with a story from the cisms that have been leveled against my critics come to the floor and say it Philip Morris company. For someone this amendment. is impossible for us to measure how who has been battling this issue for a First, if you support the McCain bill, many children smoke how many brands long time, it is hard to imagine, but which has a company-specific payment of cigarettes. In fact, my friend, the Geoffrey Bible, chairman of the Na- in it, then you must necessarily reject Senator from Texas, says it doesn’t tion’s largest tobacco company, told the argument that you cannot assess pass the laugh test, to think that we employees in New York that he has re- on a company-specific basis. McCain would be able to measure how many cently appointed a senior executive to assumes that, I assume it, common underage kids are smoking Camels or ‘‘design more actions’’ to back up the sense dictates that, in fact, the compa- Marlboros or Kools or Virginia Slims. company’s long-held claim that it does nies market their brands to specific Let me suggest to him and others not try to appeal to youngsters. groups and can measure the success of who criticize this amendment, the to- What a great epiphany it must have their marketing and sales. The Durbin- bacco companies have extraordinary been in Richmond, VA, for Philip Mor- DeWine amendment takes the McCain resources and ability to measure the ris to finally realize we are talking premise of the fee assessed on a com- use of their product. If you challenged about them, we are talking about their pany-wide basis and expands it. So for Philip Morris to tell you how many marketing and advertising techniques, supporters of the McCain bill, the Dur- left-handed Latvians smoke Marlboros, and we are talking about the possibil- bin-DeWine amendment is consistent I bet they could come up with the num- ity, if they do not get serious and start with the methodology that is used. ber. If you challenged R.J. Reynolds to reducing sales to youth, that in fact Second, this will not lead to price in- come up with how many tongue-tied they are going to have to pay for it. creases. The Durbin-DeWine amend- Texans use Camels, I’ll bet they could The Durbin-DeWine amendment says ment is just the opposite. Some are ar- come up with the number. Because that payment should be directed at the guing the look-back provision means they market these products and these companies based on their conduct. If the cost of the tobacco product is going brands on a very specific basis. They they are positive and reduce sales to to go up. Well, not necessarily. If, for want to know not only how many they children, they will be rewarded. If they example, in the case that I used, R.J. are selling, but to whom they are sell- ignore this bill and they ignore these Reynolds is doing a good job and they ing them because they have billions of goals and end up selling more to chil- are not assessed a surcharge, but Philip dollars of advertising that they are dren, they should pay a price for it. I Morris is doing a bad job and they are going to focus in, to try to win over don’t think that is unreasonable. assessed, then Philip Morris is going to new groups. I want to salute, incidentally, the have to find a way to absorb that pay- So the suggestion that we cannot State attorneys general who started ment in their cost on the bottom line, measure the number of young people this ball rolling. Some have been criti- because to raise the price of their prod- using certain brands of cigarettes just cal of them. I have not. We would not ucts puts them at a competitive dis- defies common sense. The industry has be here today without their initiative advantage with the people at R.J. Rey- this ability. It has this knowledge. It is and without the progress that they nolds. a sampling technique that is used by made. Particularly, I would like to sa- The Durbin-DeWine amendment is businesses across America, and it can lute Attorney General Skip Humphrey specific in saying any payment that is S5594 CONGRESSIONAL RECORD — SENATE June 4, 1998 assessed is going to be absorbed by the tached to smoking addiction, diseases, able to get around efforts to restrict company in their bottom line. Let me and death. And we have the same tar- electronic advertising; they were able give you an example of the breadth of get in reduction as the original pro- to get around the early warning labels this payment. posed settlement with the States attor- that were passed by the Congress. If a company misses the target by 20 neys general. When our colleague on the other side of percent—in other words, we are saying I hope those who have listened to the Congress, the late Mike Synar, we are going to reduce teen smoking by this debate will understand what we passed legislation to ensure that the so much percent—15 percent, 20 per- are about here. This look-back amend- States would take strong action to en- cent, 30 percent—and it turns out they ment is more than just a technical ap- force the antisales laws to minors, the miss it by 20 percent, by a large mar- proach. It is, in fact, an approach tobacco companies got around that. gin, under our amendment their pay- which requires honesty and account- And the reason is that past policies ment would add up to about 29 cents a ability. The tobacco companies hate never provided a way to hold each indi- pack. It sounds like a lot of money. It this amendment like the devil hates vidual company accountable. is, but don’t forget for a moment that holy water, because this amendment So that is why this legislation is so the tobacco companies’ profit on each holds them accountable and says, ‘‘We very important. I would submit to my package of cigarettes is 40 cents. So don’t want to hear anymore verbiage colleagues—I argued this in the Senate our amendment is not going to drive from you about reducing teen smoking. Commerce Committee when, as the them out of business. It simply is going We want to put it in writing. We want Presiding Officer knows because I of- to tell them their profits are on the to put it on the line. We want you to be fered a similar proposal there as well— line unless they stop selling to chil- held accountable, and you will be held that this is really the key, if you want dren. accountable. And if the Durbin-DeWine to see tobacco companies clean up Some have argued that our surcharge amendment is adopted and you con- their act and do what they have long is too high and will increase costs to $7 tinue to push your product on children said they would do, and that is, stop billion instead of the underlying bill’s and this addiction rate among our kids targeting the youngsters of our coun- $4 billion. That is not accurate, either. continues to grow, you will pay try. The underlying bill is kept at $4 billion through the nose.’’ If you really do not want to change in industry-wide payments, but it also That is hard talk, I know. This is a business as usual, vote against this has company-specific payments as hard subject. We are talking about the amendment. If you think that tobacco well. The Durbin-DeWine amendment No. 1 preventable cause of death in companies will do it on their own, then draws a line and puts an absolute cap America today. That is why this his- you ought to oppose this amendment. at $7 billion in total. toric debate is so important, and that But if you want to change the course of The two approaches—the bill and our is why no other political diversion that history and make sure that we have amendment—have similar aggregates if has been raised on the floor should be the tools to hold the companies ac- the companies miss by large amounts. taken seriously. Let us get about the countable when they again, as they Third, it has been said that this people’s business. Let us do something have done throughout history, look for amendment is punitive—punitive. Our to give our kids a chance to be spared ways to get around this legislation, if approach is not punitive. It reduces the the scourge of addiction to nicotine you really want to get the job done industry-wide payment that applies to and tobacco products. right, then vote for this amendment of- companies that, in fact, reduce their Mr. President, I yield back the re- fered by our colleague from Illinois. youth smoking while other companies mainder of my time, and I suggest the The tobacco companies have spent fail to do so. It increases the sur- absence of a quorum. vast sums in recent months arguing charges on companies that continue to The PRESIDING OFFICER. The that this sort of legislation really isn’t market or sell to kids. That is not pun- clerk will call the roll. needed, that they would take strong ishment, that is accountability. The assistant legislative clerk pro- action on their own and that they have And fourth, as a sign we are not puni- ceeded to call the roll. cleaned up their act from years past. In tive, we have capped the amount that Mr. WYDEN. Mr. President, I ask the Senate Commerce Committee, we can be charged. It has been pointed out unanimous consent that the order for heard that argument. As the Presiding that we require payments of as much the quorum call be rescinded. Officer knows, we heard from all the as $240 million per percentage point, The PRESIDING OFFICER. Without CEOs at that time. Given the fact that but keep in mind, too, that the under- objection, it is so ordered. many of the documents and the ac- lying bill also has provisions in there Mr. WYDEN. Thank you, Mr. Presi- counts of past industry misdeeds were for payments by percentage point. The dent. pretty old, a number of us were in- lifetime social cost of hooking each Mr. President, and colleagues, the clined to say it is a new day. Let us see youth smoker is $400 million. We are single most important step this Con- if the tobacco companies are going to still charging companies less than the gress can take to protect our young- be better corporate citizens. Let’s see if social cost of their continued sales to sters from the tobacco companies that they have cleaned up their act. youth. prey on them is to hold each of those As we prepared for those Commerce I will conclude my time that has companies individually accountable. Committee hearings, Mr. President, I been allotted under the unanimous And that is what the look-back legisla- learned that the Brown & Williamson consent agreement by showing on this tion does that is now before the Sen- Company was again engaging in con- chart what happens under the Durbin- ate. duct that did not really reflect what DeWine amendment as opposed to the I would like to spend just a few min- they and other companies were saying McCain bill. utes talking about why this is such a in the ads that they were running at If companies miss by 5 percent, the critically important amendment in that time about how it is a new day amount they are charged is $240 mil- terms of protecting our children. and they have cleaned up their act. lion under our amendment, and it is History shows, and shows very clear- A brief bit of history for the Senate $190 million in the underlying bill. At ly, that each time the Congress tried to I think would be revealing. 10 percent, you can see the numbers, rein in the tobacco companies in the I participated, as a Member of the and 20 percent as well. past, the tobacco companies would use other body, in the hearings in 1994 The Durbin-DeWine amendment sets their enormous marketing, entre- where the tobacco executives then out to achieve several goals on which I preneurial and public relations skills under oath, told me that nicotine isn’t hope all Senators, regardless of party, to get around those efforts. So this addictive. Of course, they contradicted will agree. We reduce the number of amendment offered by our colleagues, every Surgeon General for decades. But youth smokers by 450,000 over the Senators DURBIN, DEWINE, myself, and there was actually a revelation at that McCain bill. We reduce the number of others, provides an opportunity to lit- hearing that perhaps was equally re- premature deaths by 150,000 with this erally reverse the course of history. markable. At that hearing, it was amendment. We reduce by $2.8 billion Previous efforts were always evaded brought to light that the Brown & the lifetime social costs that are at- by the tobacco companies. They were Williamson Company was genetically June 4, 1998 CONGRESSIONAL RECORD — SENATE S5595 altering tobacco plants to give it an bacco companies fear is accountability. gums, on therapy, on hypnosis, on all added punch as a way to attract smok- They have not been faced with com- of the things that people go through to ers—shocking evidence. And when pany specific accountability when we try to stop. We are spending $1.3 billion brought to light, the Brown & have passed previous legislation—warn- a year in Massachusetts alone. Ex- Williamson Company pledged to the ing labels, advertising restrictions, or trapolate that out across the country— committee, to the country, that they the Synar amendment. They never had it is millions of dollars more than the wouldn’t engage in that kind of con- to face an amendment like this that Federal Government commits to day duct again. would say, look, we are actually going care for our children. The reason this As we prepared for our hearings in to require you to produce results. happens is because people get hooked the Senate Commerce Committee, we I hope our colleagues will, as re- at the early stages. began to hear about news reports that flected by the bipartisan authorship of Now, I want to share with my col- the Brown & Williamson Company was this amendment—our colleagues, Sen- leagues something about getting using genetically altered tobacco, ator DURBIN and Senator DEWINE—will hooked in the early stages. We con- known as Y–1, in cigarettes and selling pass this legislation. It is critically im- tinue to hear colleagues come to the them both here and abroad. So when portant for the youngsters of this floor and say, gosh, this is going to the executives came before the Senate country. It is the one part of this bill raise money in the expense of ciga- Commerce Committee I asked them that will make sure that the job actu- rettes, and that is not a good thing. about this. In their words, the CEO of ally gets done in protecting young- But they never address the amount of the Brown & Williamson Company said, sters, and not allow another piece of money that Americans are spending be- ‘‘We are working off a small stockpile legislation, once again, to be evaded by cause of people who smoke. They never of genetically-altered tobacco, and in the tobacco companies’ genius, their address the tax that cigarettes fact that is being included in cigarettes marketing skills, and the vast sums ‘‘whack’’ every American, even those in our country and around the world.’’ that they will continue to spend with who don’t smoke. Every single house- As many in the Senate know, there is respect to marketing their products. hold in America is spending an un- now a criminal inquiry underway. I yield the floor. wanted, unrequested, undesired 1,300 There have already been those who Mr. KERRY. Mr. President, I thank plus dollars —1,370 or so dollars. Every have pleaded guilty in connection with my colleague from Oregon for his con- household in America spends that, this matter. The Justice Department tinued, persistent, passionate commit- whether they want to or not, on the continues its investigation. ment to trying to pass this legislation. cost of the other Americans who smoke The reason I bring this up is this is a The Senator was referring to the ex- and then get sick. concrete, tangible reason why we need traordinary sums of money that the to- Let me share a story about some the amendment offered by the Senator bacco industry spends. Let me remind Americans who smoke and get sick, a from Illinois. The Senator from Illi- our fellow Americans that amount of commentary in USA Today by Victor nois, our colleague, Senator DURBIN, money is $6.5 billion per year, $16.5 mil- Crawford. The title is ‘‘Tobacco was gives us a chance to reign in a com- lion per day, $700,000 every hour to get Dad’s Life; It Also Took his Life.’’ I pany that engages in that kind of people to smoke. What is most aston- read from the article: rogue action, action that is detrimen- ishing about this effort to get people to My father never had a chance. When he tal to the health of the American peo- smoke is the degree to which it has was growing up in the 1940s, almost everyone ple, and action that, in fact, as re- been targeted at young people, tar- smoked cigarettes. He said it was the thing cently as 4 years ago said they would geted at children. to do. It was not until 1964 that the U.S. Sur- never engage in again. It is an extraordinary story. Nine out geon General declared smoking was harmful. It is one thing to talk about conduct of 10 kids who smoke use one of the But by then, my father had been addicted for that is 20 or 30 years old; it is another three most advertised brands, and yet almost 20 years. His addiction finally killed thing to talk about conduct that stems less than 30 percent of adults use those him last March, one month before his 64th from the 1950s. But it is quite another most advertised brands. A study of 6- birthday. When my father was diagnosed with throat to see a company that makes a pledge year-olds showed that just as many 6- cancer in 1991, some thought he had it com- to the American people that they will year-olds—91 percent of all the 6-year- ing to him. You see, my father was a Mary- stop engaging in a health practice olds in this country—could identify Joe land State senator turned tobacco lobbyist. which is obviously detrimental to chil- Camel just as they could identify He was the first to dismiss the antismoking dren and to our citizens, and then start Mickey Mouse. That is an absolutely people as ‘‘health Nazis’’ but spent the last it again, even while the hot light of the extraordinary statement. years of his life trying to undo the damage Congress is examining their conduct in Now, there is a reverse side of how he had done. He admitted he had lied, and he considering legislation. extraordinary these statistics really apologized for claiming, ‘‘There is no evi- dence that smoking causes cancer.’’ Unfortu- These companies are not going to are, because for every American who nately, tobacco lobbyists understand this change on their own, Mr. President. We smokes there is an American or two simple logic all too well. Like my father, are going to have to hold them ac- who are trying not to smoke. All of most smokers today start when they are countable through legislation. That is them will tell you—or almost all, 86 about 13 years old. And since about 90 per- why this amendment is so very impor- percent to 90 percent of them—they cent of all new smokers are 18 and under, the tant. I will tell my colleagues that I started smoking when they were teen- industry needs to keep hooking kids to stay believe this amendment, in connection agers. Most of them—again, many, in business. with the accountability requirements many, analyses and polls have been I will skip through a little bit, turn- that the President knows we set up in done of this—most of those people who ing to the end: the course of our Commerce Commit- started smoking as teenagers will tell My father said, ‘‘Some of the smartest peo- tee deliberations, is the single most us if they could quit today, they would ple in America work at just one thing: trying important tool for reversing history quit today and never start again. If to figure out how to get young people to and making sure that after this bill is they had the choice to make again, smoke. As tobacco kills off people like me, passed and the tobacco companies try they wouldn’t choose to smoke. But they need replacements.’’ My father didn’t live to see his daughter graduate from col- to get around it, that we will have they smoke because they are addicted. lege; he won’t meet my future wife, nor will some strong tools to rein them in. They are hooked. he walk my sister down the aisle at her up- I know we want to move to a vote on The truth is, in the United States of coming wedding; he will never know his this, but I simply wanted to take a few America we have more people spending grandchildren, and they will never meet minutes of the Senate’s time to say more money to try to get unhooked on their grandfather—all because when he was that I think this is a critically impor- an annual basis than we spend on day 13, smoking was the thing to do. Let’s give tant amendment. It is critically impor- care. That is most extraordinary. I today’s kids a fighting chance. tant for each Senator who really is se- found it hard to believe when I heard Mr. President, that is why we are rious about changing business as usual that. In Massachusetts alone, our citi- here in the U.S. Senate. We have been with respect to tobacco policy. The sin- zens are spending $1.3 billion a year on tied up for more than a week now try- gle most important concept the to- nicotine patches, on different kinds of ing to give kids a fighting chance. S5596 CONGRESSIONAL RECORD — SENATE June 4, 1998 There is only one reason this bill is on Let me read what Dianne Burrows, a our high market penetration among young the floor of the Senate: because every researcher, wrote in a memo for R.J. smokers . . . 15 to 19 years old . . . my own expert in America, including the to- Reynolds in 1984: data, which includes younger teenagers, shows even higher Marlboro market penetra- bacco companies, tells us that if you If younger adults turn away from smoking, tion among 15–17 year olds. raise the price of cigarettes, you will the industry must decline, just as the popu- reduce the number of young people who lation which does not give birth will eventu- This is from a different document, smoke. And if we reduce the number of ally dwindle. Mr. President. This is a Philip Morris young people who smoke now, we will In the same memo, it says: internal document in 1987. This came reduce the 420,000 Americans who die Younger adult smokers have been the criti- from the Minnesota case. This was an every year as a result of a smoking-re- cal factor in the growth and decline of every exhibit in the Minnesota trial. This lated disease, such as cancer of the major brand and company over the last 50 may explain one of the reasons that years. They will continue to be just as im- pancreas, cancer of the larynx, cancer Minnesota finally reached a settle- portant to brands/companies in the future ment. of the throat—one cancer or another— for two simple reasons: the renewal of the and heart disease and liver disease. You may recall from the article I sent you market stems almost entirely from 18-year- that Jeffrey Harris of MIT calculated . . . The Presiding Officer understands old smokers. No more than 5 percent of the 1982–1983 round of price increases caused better than anybody, as a practicing smokers start after the age of 24. two million adults to quit smoking and pre- physician and one who has been a key That is an R.J. Reynolds research vented 600,000 teenagers from starting to architect in helping to get this bill in memorandum, telling us that people smoke. Those teenagers are now 18–21 years a position to pass it, that this bill is don’t start smoking after age 24. They old, and since about 70 percent of 18–20 year- about stopping kids from smoking and targeted young people and got them olds and 35 percent of older smokers smoke a reducing the costs to America, the hooked with a narcotic killer sub- PM brand, this means that 700,000 of those costs to families, the unwanted, stance. adult quitters had been PM smokers and 420,000 of the non-starters would have been unrequested costs of smoking. Families Brands/companies which fail to attract PM smokers. Thus, if Harris is right, we were who result with a disease that comes their fair share of younger adult smokers hit disproportionately hard. face an uphill battle. from smoking wind up paying tens of Here is the kicker: ‘‘We don’t need thousands of dollars more in health in- Younger adult smokers are the only source of replacement smokers. this to happen again.’’ surance. But the impact for those peo- In other words, we don’t need to lose ple who don’t have insurance, or ade- So kill them off and replace them. Kill them off and replace them. That is these smokers again. We have to find a quate insurance, is to raise the insur- way to penetrate—that, and the young ance costs for everybody in America, the way it has been. This is a Brown & Williamson memo people. But the most important thing raise the costs of all of our hospitals, is they found that their price increase raise the costs for families who can ill from consultants recommending that the company consider Coca-Cola or caused 2 million adults to quit, and it afford it. prevented 600,000 teenagers from start- Mr. President, this is the first oppor- other sweet-flavored cigarettes. The 1972 memo says: ing to smoke. tunity the U.S. Senate has had to ad- That is a cigarette industry docu- dress an extraordinary history. I want It’s a well-known fact that teenagers like sweet products. Honey might be considered. ment. For those Senators who keep to share that history with my col- coming to the floor saying, ‘‘Why are leagues. It is now known that the to- They were talking about a way to try to sweeten cigarettes and get more we raising this price?’’ all they have to bacco industry helped to create this do is read the cigarette companies that mess by targeting young people, by young people hooked. Another Brown & Williamson memo they are inadvertently, or otherwise, creating replacement smokers. Many said: protecting on the floor by not voting of my colleagues may not have had an for this legislation, because the ciga- opportunity to focus precisely on the Kool has shown little or no growth in share of users in the 26 [plus] age group . . . rette companies themselves will tell degree to which that has been true and Growth is from 16–25 year olds. At the you, raise the price and they lose busi- the degree to which, therefore, this ef- present rate, a smoker in the 16–24 year age ness. That is precisely why people fort to try to raise the price of ciga- group will soon be three times as important agreed on a volume adjustment in the rettes and create a series of efforts to to Kool as a prospect in any other broad age process of arriving at how much money prevent young people from smoking category. is going to be gained over the course of through cessation programs, Let me share a Philip Morris docu- the life of this legislation. counteradvertising, and other efforts, ment with you. We are going to spread Let me read from a different Philip is so important. this around. We have had some from Morris memo. In 1975, the R.J. Reynolds company, R.J. Reynolds and Brown & The teenage years are also important be- in a memorandum, wrote the following: Williamson. This is from a report sent cause those are the years during which most To ensure increased and longer-term from researcher Myron E. Johnson to smokers begin to smoke, the years in which growth for Camel filter, the brand must in- Robert B. Seligman, then vice presi- initial brand selections are made, and the pe- crease its share penetration among the 14–24 dent of research and development, in riod in the life cycle in which conformity to age group, which have a new set of more lib- 1981: peer group norms is greatest. eral values and which represent tomorrow’s We will no longer be able to rely on a rap- Mr. President, here we have an ad- cigarette business. idly increasing pool of teenagers from which mission by Philip Morris of what ev- That is the R.J. Reynolds company to replace smokers through lost normal at- erybody has known—that they are ac- talking about targeting the 14- to 24- trition . . . Because of our high share of the tually targeting the peer group which year-old age group because they are market among the youngest smokers, Philip they know to be the most susceptible ‘‘tomorrow’s cigarette business.’’ Morris will suffer more than the other com- to exactly the kind of advertising that panies from the decline in the number of they geared up. They represent tomorrow’s cigarette busi- teenage smokers. ness. As this 14–24 age group matures, they The teenage years are also important be- will account for a key share of the total cig- So here you have Philip Morris, par- cause those are the years during which most arette volume for at least the next 25 years. ticularly, concerned about the loss be- smokers begin to smoke . . . the period in That is an R.J. Reynolds tobacco tween different companies, targeting the life cycle in which conformity to peer company executive, a vice president for teenagers. group norms is the greatest. This from the same report of Philip marketing, C.A. Tucker, on September That is extraordinary. Morris: 30, 1974. So the cigarette companies willfully Let me read what Mr. C.A. Tucker Today’s teenager is tomorrow’s potential played on the time period of greatest regular customer . . . The smoking patterns also said: peer group pressure and played to the of teenagers are particularly important to peer group pressure. So it is today that This suggests slow market share erosion Philip Morris . . . the share index is highest we can hear from people who are in for us in the years to come unless the situa- in the youngest group for all Marlboro and tion is corrected . . . Our strategy becomes Virginia Slims packings. wheelchairs who have lung transplants clear for our established brands: 1. Direct ad- Marlboro’s phenomenal growth rate in the like Pam Lafland, who I quoted a few vertising appeal to the younger smokers. past has been attributable in large part to days ago, who tells a story today of her June 4, 1998 CONGRESSIONAL RECORD — SENATE S5597 starting, as just that kind of peer they agreed to pay amounts of money, date. This is left largely for the States group pressure person who responded they agreed to curb advertising, they to be able to decide what works for to the notion, ‘‘Oh, boy. If I smoke a agreed to engage in cessation pro- them best and how they will organize cigarette, I am going to look older.’’ grams, and they agreed to raise the their efforts. We have simply tried to Today she looks a lot older. Today she price of cigarettes—all of the things outline those areas that by most expert is trying to take care of her kids out of that we are seeking to do here in this judgments there is the greatest chance a wheelchair. legislation. There is no excuse for a of really having an impact on children Mr. President, that is what this is all U.S. Senator coming to the floor and and making a difference in their lives. about. Let me read from a different suggesting that we shouldn’t do at a So those outlines have been laid out R.J. Reynolds Tobacco Co. marketing national level in the U.S. Senate what as a menu, if you will, from which one report on the future of Winston. This is the cigarette companies themselves could choose at the State level. It is 1990—15 years ago already of reports have agreed to do in settlements with not insignificant that the Governors, that we are looking at. the States—no excuse. The States both Republican and Democrat alike, themselves have arrived at settle- Winston, of course, faces one unique chal- have signed off on that concept. If they lenge . . . . It’s what we have been calling ments. If you extrapolate the amount are content that they can exercise the ‘doomsday scenario’. of money that they are paying in those their judgment adequately and that Get this, the ‘‘doomsday scenario.’’ settlements, it is more than the U.S. this gives them an opportunity to be . . . an acute deficiency of young adult Senate has agreed in its denial of a able to continue the things that they smokers, apparently implying Marlboro’s $1.50 increase and more than it has have started, I think that ought to sat- final domination and our utter demise with- agreed to raise in total in this legisla- in a generation.’’ tion. isfy the judgment of those who often The ‘‘doomsday scenario’’—that they So this is not a matter of economic make a career out of fending for the are not going to get enough young peo- survival for those companies. This is a right of States to make those decisions ple hooked on Marlboros, and down question of whether or not we are and a career out of opposing the Fed- they go. going to engage in an effort to reduce eral Government’s heavy hand into Here is a 1969 draft report from the the access of our young people to ciga- something. This bill specifically, I Philip Morris board of directors: rettes. That is what this is about. think, appeals to both of those best op- Smoking a cigarette for the beginner is a I have heard some people complain, tions. I hope my colleagues will recog- symbolic act . .. . ‘I am no longer my moth- ‘‘Well, you know, it is one thing to nize that upon close analysis. er’s child, I am tough, I am an adventurer, raise the money but we ought to do the Mr. President, I simply wanted to I’m not square’ . . . . As the force . . . right thing with the money.’’ Then refocus the Senate on the critical com- This is really. they start coming and diverting the ponent of what brings us here. I think * * * As the force from the psychological money to a whole lot of things that we have, hopefully, finally arrived at symbolism subsides, the pharmacological ef- have nothing to do with stopping kids an assessment that there is only one fect takes over to sustain the habit * ** from smoking. reason for raising the price of ciga- Mr. President, that is one of the most It is going to take more than just a rettes. That reason did not initiate remarkable admissions from a com- price increase to be successful in our itself in the Senate. It came from the pany that we have had in this entire goals. We need to guarantee that kids tobacco companies themselves, from debate. I want to rephrase it. who are particularly vulnerable—kids economists, from experts. It came from What they are saying is that after who have difficult situations at home health experts, and it came from many they have abused a young person’s sus- or kids who may leave school at 2 focus groups and analyses, all of which ceptibility to peer pressure, after they o’clock in the afternoon for whom have arrived at the conclusion that have exploited this young person’s there is no adult supervision between price is important. availability to get them into smoking, the hours of 2 o’clock and 6 or 7 in the they acknowledged in 1969 that once evening—are not going to be left to Now, I thought, frankly, that Adam the psychological symbolism is gone, it their own devices in order to go out in Smith and others had arrived at that is the pharmacological effect that sus- the streets and meet a drug dealer, or conclusion a long, long time ago. I tains the habit. In other words, they subject themselves to the various peer think most people in the marketplace are hooked. They are addicted. They pressures and wind up with smoking as have always known that most commod- got to have it. a new habit. ities are price sensitive, and the mar- Here is a Lorillard executive in 1978: Mr. President, we have the oppor- ketplace is price sensitive. Indeed, the ‘‘The base of our business is the high- tunity here to be able to make a dif- tobacco companies have underscored school student.’’ ference in the availability of kids to that in their own memoranda which Mr. President, there are pages and that kind of free time. We have the op- say they lost smokers as a result of pages of the thoughts of the cigarette portunity to be able to provide ces- their earlier price increases. What hap- companies regarding their availability sation programs, which have been prov- pened before will happen again. The to cigarettes, all of which are the most en to work. California, Arizona, my question is whether we are going to profound fundamental documentation own State of Massachusetts, have ex- maximize our effort in order to guaran- and for which the U.S. Senate must emplary programs which are reducing tee that kids get a lot more than just pass this legislation in the next days. the level of teenagers who are smoking, the price increase, that they get the There is no room for excuses in the and they do it through various kinds of kinds of guidance and the kinds of per- face of the cigarette companies’ own education—outreach, peer groups—dif- sonal counseling and the kinds of per- acknowledgments of what they have ferent kinds of educational efforts sonal education that will make a dif- done to target generation after genera- within the classrooms and within the ference in the peer pressure, symbolic tion of Americans in order to get them schools. But we need to train people in side of the choice that so many have hooked on a substance that is a drug, that. We need to train teenagers. You made. And this ultimately will benefit that is addictive and a killer substance need the adequate development of every single American. If we are going which winds up costing Americans in- teachers to be able to conduct that to talk about the cost, let us talk creasing amounts of money. costing kind of pedagogy with which they may about the cost to all of America of Americans increasing amounts of not be familiar. And you need to have smoking—the cost through all of our money. an adequate supply of materials. You hospitals, our pulmonary wards, Mr. President, we have that oppor- need to be able to help organize it ad- through emphysema, the length of ex- tunity here. We have the opportunity ministratively. traordinary care and its cost for those to do precisely what the cigarette com- I think this bill is structured in a who have terminal illnesses as a con- panies themselves have now agreed to way that tries to afford the maximum sequence of smoking and the con- do. They settled of their own accord opportunity to States and local com- sequences to all other Americans who with a number of different States. And munities to be able to decide how to do choose not to smoke but because of in their settlements with those States, that. This is not some big Federal man- secondary smoke. S5598 CONGRESSIONAL RECORD — SENATE June 4, 1998 Mr. President, I suggest the absence Texans that the tobacco companies one thing. But why do we have to keep of a quorum. have conspired to addict to nicotine the $700 billion? Why do we have to Mr. GRAMM addressed the Chair. are going to have taxes imposed on raise the level of Federal taxes on The PRESIDING OFFICER. Will the them under this bill. A blue-collar fam- Americans making less than $10,000 a Senator withhold? ily, a husband who is a truck driver year by 41.2 percent? If the objective is Mr. KERRY. No. and a wife who is a waitress, will end to make cigarettes more expensive and The PRESIDING OFFICER. The up paying $2,030 of new Federal taxes if discourage smoking, why do we have to clerk will call the roll. they smoke one pack of cigarettes each impoverish blue-collar America in the The bill clerk proceeded to call the a day. So we are damning the tobacco process? roll. companies but we are impoverishing What I am saying is, if we believe Mr. GRAMM. Mr. President, I ask the victims of the tobacco companies. that raising prices will discourage unanimous consent that the order for As my 85-year-old mother, who smoking, let’s raise prices. But let’s the quorum call be rescinded. speaks with the wisdom that comes take at least part of the money that The PRESIDING OFFICER. Without from being 85 years old, has said to me, comes to the Government, and instead objection, it is so ordered. ‘‘I’m a little bit confused; you tell me of paying tobacco farmers $21,000 an Mr. GRAMM. Mr. President, I ask that this guy Joe Camel makes me acre and letting them go on growing unanimous consent that we proceed smoke and that I am a victim, but you tobacco; instead of paying plaintiffs’ under the current status quo, that turn around and tax me.’’ attorneys $100,000 an hour for filing Members be recognized for the purpose Mr. KERRY. Will the Senator yield these suits; instead of setting up pro- of debate only, until 2:15. for a question? grams where every major Democratic The PRESIDING OFFICER (Mr. Mr. GRAMM. I listened to the Sen- contributor will have his charity or his SMITH of Oregon). Is there objection? ator speak for over an hour. All I want interest funded by this program, why Without objection, it is so ordered. to do is make my point, and when I get don’t we raise the price of cigarettes, Mr. GRAMM. Mr. President, I am not to the end of it, I will yield. discourage smoking, and take the going to give a long speech this after- So with the wisdom that comes from money and give tax cuts to blue-collar noon. We are working to develop a being 85 years of age, my mother, who America so we are discouraging them compromise to provide some cushion to has no formal education, has listened from smoking, but we are not pounding basically blue-collar Americans who to this debate. She has listened to this them into poverty? are going to bear the brunt of this mas- vilification of the tobacco industry— Maybe you can be self-righteous sive tax increase that is before the Sen- and justifiable vilification I might add. enough that you are not worried about ate. I am hoping that we can reach an Yet she has figured out that nobody is a blue-collar couple in Texas paying agreement, and that we will move for- taxing tobacco companies, they are $2,030 of additional Federal taxes if ward in an orderly way. Let me say to taxing her. She is the victim. The Gov- they smoke one pack of cigarettes a my colleagues that I am determined to ernment is here to help my mother. day. Maybe you are not worried about see that we do not allow the Senate to And how are we going to help her? Hav- what that is going to do to their abil- engage in one of the greatest bait-and- ing been addicted to smoking for 65 ity to pay their rent, to pay their gro- switch legislative activities in history. years, and despite her baby son’s ef- ceries, to have any chance of saving Our dear colleague from Massachu- forts for 55 of those 65 to get her to money to send their child to college. setts has in passionate terms indicted stop smoking she is addicted, and she But I am worried about it. I am not in the tobacco industry. If this is a trial is not going to quit smoking. She has any way made to feel better by damn- of the tobacco industry, I vote guilty. concluded that we are talking about ing the tobacco companies while writ- If this is a lynching, I say hang them. how bad tobacco companies are for ing a bill that protects them from pay- But I want to remind my colleagues of having gotten her addicted to smoking, ing this tax; a bill that mandates they one unhappy fact. And facts are stub- but we are taxing her. The cold, per- pass the tax through to the consumer, born things. The cold reality of the bill sistent, unhappy fact is that 59.1 per- which basically is blue-collar America. we have before us, all 753 pages of it, is cent of these taxes will be paid by I have an amendment that is very that we can damn the tobacco compa- working blue-collar Americans who simple. It says: Raise the price of ciga- nies all we want, and I join in that cho- make less than $30,000 a year; 75 per- rettes, discourage smoking, but instead rus. As to where conspiracies have been cent of the taxes will be paid by people of letting the Government have this committed, we have a Justice Depart- and families that make less than money, what one office seeker in my ment which is largely unemployed in $50,000 a year. State has called ‘‘winning the lottery’’, any other activity, let them inves- If this is not a classic case of bait and instead of setting up a program that tigate and prosecute. But I want to be switch, I never heard one. All of the gives not thousands, not millions, but sure everybody understands that no- rhetoric is about keeping teenagers untold billions to everything from body is talking about penalizing the to- from smoking. I would love to do that. community action to international bacco companies. I would like to get people who are not smoking cessation—it is obvious that What we hear day after day after day teenagers to also stop smoking. I would people long since ran out of ideas as to is a steady drumbeat of denouncing the love to do that. But why we have to how to spend the money—instead of en- tobacco companies while we have 753 give $700 billion to the Government to gaging in this feeding frenzy, which pages in this bill that raise taxes on do that, I don’t understand. I am strug- will bloat Government forever, why blue-collar America. In fact, we have a gling, opposing this organized effort don’t we take some of the money and bill before us that not only does not and all of these people who are outside give it back to moderate-income peo- tax tobacco companies but has the ex- with their buttons on saying ‘‘Give me ple. So we raise the price of cigarettes, traordinary provision that makes it il- your money.’’ we discourage them from smoking, but legal for them not to pass the tax Secretary Shalala has said that the we don’t impoverish them? through to the consumer. So tobacco price increases will reduce smoking by I have picked probably the worst fea- companies are held harmless. 50 percent among teenagers. This bill ture of the current Tax Code to try to What we have here is a giant bait and sets a target of reducing smoking by 60 fix as a part of this process. What I switch. The bait is tobacco companies. percent, so they are going to take $700 have done is targeted a part of the Tax Try them. Convict them. Hang them. billion and all they claim they are Code where it is the policy of the Fed- But the switch is to impose $700 billion going to be able to do with it is reduce eral Government to discourage people of taxes primarily on blue-collar Amer- smoking another 10 percent. Though it who fall in love from getting married. icans; 59.1 percent of this tax will be is interesting, when USA Today asked I happen to believe the family is the paid for by Americans who make less the American people in a poll if they strongest institution for human happi- than $30,000 a year. In my State, 3.1 believed this bill would stop people ness and progress that has ever been million people smoke. As you listen to from smoking, 70 percent said no. developed. I don’t understand a tax pol- all of this ringing debate, we are talk- Here is my point: If we want to raise icy that says if you have a waitress and ing about these victims. The 3.1 million taxes to discourage smoking, that is a truck driver who meet and fall in June 4, 1998 CONGRESSIONAL RECORD — SENATE S5599 love and get married, we are going to In any case, the point that I want to rettes but we don’t impoverish blue- make them pay more taxes for being reiterate, because it gets lost in this collar America by making it fund the married than if they were single or whole process, is a simple point: Every- largest growth in Government that we lived in sin. Or if a CPA and a lawyer, thing that is being said about the to- have seen since the mid-1960s. working all the way up and down the bacco companies I agree with. If we are I hope my colleagues will support income structure, fall in love, get mar- here to indict them, they are indicted. this amendment. One way or the other, ried and have a whole bunch of children If we are here to convict them, they I hope to see it adopted. I want to get who can pay Social Security taxes in are convicted. If we are here to hang a vote on it. I want America to know the future and solve America’s prob- them, let the hanging begin. But de- who is for it and who is against it. That lems in the future, we tax them an av- spite all that rhetoric, which is inter- is the essence of democracy—account- erage of $1,400 a couple because they esting and appealing and it makes us ability. I think this is an issue on got married. As my colleagues have feel good, in the end, 59.1 percent of which we need some accountability. heard me say on many occasions, my this tax is being paid by American Quite frankly, I think my amend- wife is worth $1,400, and I would be blue-collar workers who make less ment improves this bill. We ought to be willing to pay it, but I think she ought than $30,000 a year. giving about 75 or 80 percent of the to get the money and not the Govern- The tobacco companies, on the other money back in tax cuts. We need to ment. hand, have a provision that even if one have an effective but reasonable pro- So what my amendment does is take tobacco company should say, ‘‘Well, I gram for antismoking, and we need to roughly a third of this money in the could get a market advantage by not throw out about 745 pages of this 753- first 5 years, and then half of it in the passing this through,’’ they have legal page bill so that it is really about second 5 years, letting them spend two- protection that makes them pass it smoking and not about the largest thirds of this money, more money than through to be sure the blue-collar money grab that has occurred in Con- you would possibly spend efficiently if worker gets all of the tax burden and gress in my period of service. your life depended on it. People who that none of it is absorbed by the to- This amendment is a first step in the would have been happy with thousands bacco companies. right direction. I hope it is not the last now will be given billions. Tobacco All I am trying to do is say this: step. I understand there are others who farmers will, in 6 months, take a quota Don’t get blue-collar Americans, who are going to be offering provisions re- for growing tobacco they could buy are the victims of the effort by tobacco lated to tax breaks for health care and today for $3,500, and we are going to companies to get people to start smok- other items, but this is a logical place pay them over $21,000 for it in this bill. ing, confused with tobacco companies. to start, and it is where I want to start. Mr. President, I yield the floor. I personally don’t know why these If you want to impose taxes on tobacco Mr. KERRY addressed the Chair. quota prices have not exploded, given companies, have at it. If you want to The PRESIDING OFFICER. The Sen- this bill is out there. Maybe they fig- drive them out of business, have at it. ator from Massachusetts. ured out this bill is not necessarily But you are not going to do that, be- Mr. KERRY. Mr. President, I was en- going to become law. Rather than do cause basically there is a rule that tertained listening to my friend from all of those things, I am saying, let’s every parasite learns. If the organism Texas, who makes some pretty broad raise the price of cigarettes so we try is to survive, you don’t kill the crea- statements about who is for what and to discourage people from smoking— ture on which you engage in the para- who supports what. I think I heard him which is God’s work; I am for that site activity. You bleed the host crea- just say Democrats don’t really want —but take a third of the money and in- ture, but not to the last drop of blood. to give the money back but the Repub- stead of letting Government spend it, My view is, I care nothing about the licans do. Maybe he wishes that were let’s eliminate this marriage penalty tobacco companies and, if you want to the fact, and sometimes the wish is the for couples who make less than $50,000 destroy them, have at it. But I do care father to the fact, but not in this case. a year so that while the price of ciga- about 3.1 million Texans who smoke. As far as I know, Democrats are rettes goes up, we don’t impoverish Many of them would like to stop. My wholeheartedly in favor of a fairness people. mother would like to quit smoking, but that has escaped every single proposal That is basically what my amend- she is not going to quit smoking. that the Senator from Texas has ever ment does. I hope my colleagues are All I am saying is, don’t get tobacco brought to the floor with respect to going to support it. Our Democrat col- companies and workers confused. And I taxes. There isn’t one tax proposal that leagues do not really want to give this am talking about taxpayers. If the has passed the U.S. Senate in the 14 money back. They don’t like giving price increase, according to Secretary years I have been here that wasn’t pro- money back. They like spending it. Shalala, is going to cut consumption posed on the Republican side of the And they think anybody who works is by 50 percent and the target of this bill aisle that wasn’t made fairer by the ef- rich and they ought to be giving more is to cut consumption by 60 percent, forts of Democrats on this side of the than they are giving. then this $700 billion is getting you 10 aisle. There isn’t one tax proposal that But their idea is: Take my amend- percent more, supposedly. I just don’t the Senator from Texas and others ment and water it down to almost see how you can spend that much have brought to the floor—not one— nothing, and then get all their people money. that wasn’t geared to the upper-income to vote against my amendment. Then If you look at what is being done, it level of people in this country, and usu- get them to come back and vote for is clear that much of what is being ally at the expense of the low-income their figleaf, amendment. Then they funded in this bill has nothing to do level of people. can all go home and say, ‘‘Repeal the with smoking. For example, we man- My friend from Texas may wish it marriage penalty? I was for repealing date that the States spend the money were otherwise, but the fact is that the the marriage penalty; it is just I didn’t we give back to them on maternal and distinction is not whether or not we want to do it the way that Republicans child care block grants, on funding want to give money back, the distinc- wanted to do it. But I am with the fam- child care, on federally-funded child tion is whom we want to give it back ily. I’m with the blue-collar worker. I welfare, on the Department of Edu- to and whom they want to give it to in represent the blue-collar worker.’’ cation Dwight D. Eisenhower Profes- the first place. I am hopeful we can reach an agree- sional Development Program under Every single tax bill I have ever seen ment that will guarantee that I will title II of the Elementary and Second- worked on here, whether it was the get 51 votes for my amendment. If any- ary Act, and it goes on and on and on capital gains distribution, or how it body wants to watch the debate, once and on, because nobody has ever had came in, or the depreciation allow- it goes over 51 votes, I predict that at this much money before to spend. ances, or just on the income tax, or on least 20 or 25 percent of our colleagues Actually, this is a modest proposal. efforts to roll back some of the impact who have not voted for it will imme- What I am saying is, give a third of of the payroll tax—in every single in- diately rush and vote for it once it is what we take in cigarette taxes back stance, we, I think, have been able to adopted. We might watch that at the to blue-collar workers so we get the improve the distribution. Let me give a conclusion of this vote. benefits of the higher price of ciga- classic example. S5600 CONGRESSIONAL RECORD — SENATE June 4, 1998 In the agreement we reached last penalty, yes, it is about one-third in counteradvertising to stop kids from year, with much ballyhoo, on the budg- the first year—in the first 5 years. But smoking. et, which brought us to the point of a in the second 5 years, it jumps up to $82 So we can go home and feel good be- balanced budget and on the available billion, which is 53 percent; in the next cause we took the tobacco bill, which money for individuals earning $40,000 5 years, because we are talking about a is geared to try to stop kids from or less, under the proposal that the bill that works over 25 years—they are smoking, for which the Senator has Senator from Texas supported and our always coming to the floor and telling agreed the price increase is targeted, friends on the other side of the aisle you it is a $700 billion bill or a $600 bil- and you turn out passing the marriage supported, a single-parent mother lion bill or a $500 billion bill, so when penalty. If you take too much of it, would have gotten zero income back, it is convenient for them, they talk you begin to strip away at the ability zero tax rebate, at $40,000 or less of in- about the numbers in the context of 25 to accomplish the purpose of the bill. come. And it was only when we refused years; but when it is inconvenient for I am prepared, as I know other Demo- to pass that legislation without chang- them and it tells another side of the crats are, to vote for a legitimate ing it that she got something. In the story, they try to limit it to just 5 amount of money so that we can parcel end, we passed legislation which pro- years. Let us put it in the same con- the appropriate proportion of these vided that single parent with an in- text as the 25 years they are talking revenues to the job of reducing the come of $40,000 with $1,000 of tax bene- about. number of kids who smoke. But I think fit rebate. In that 25-year context, Mr. Presi- there is a place where common sense The distinction here is who gets dent, here is the effect: The first 5 says you have to stop if it goes too far what, and that will be the distinction years, it is the one-third the Senator in stripping us from the fundamental in an alternative we will offer, if we talked about. In the next 5 years, it is purpose of this bill itself. have to, with respect to the marriage 53 percent. Wow. In the third 5 years, it I also point out that there are other penalty, because we understand, just as is 80 percent of the amount of money areas that will want to compete for well as the Senator from Texas, that available under this legislation. And in some of this funding. I think it is im- the marriage penalty is unfair, the the last two sets of 5 years, it is 77 per- portant for Senators to think about the marriage penalty is an aberration in cent and 73 percent. overall amount of money that would be the context of the Tax Code, and has a So the Senator is really talking available for those purposes. negative impact on an institution that about gutting—gutting—the effort to The final comment I make is the we respect equally with the Republican stop kids from smoking. And every Senator from Texas spent a lot of time Party. time he comes to the floor he talks saying how this bill is misdirected. He So we will offer, I think, in fact a about all the things this bill does that is crying for the poor people who are fairer and better structuring of an is Government. Well, by gosh, a ces- going to pay for an additional cost of a elimination of the marriage penalty, sation program involves somebody or- pack of cigarettes. He says how mis- and we will give the Senate another op- ganizing people to help people not to directed this bill is because it comes portunity to vote on fairness. You can smoke. And since schools are where down on the victims, and not on the to- vote for Senator GRAMM’s proposal, most of our children reside for the bet- bacco companies. But then he says he which will benefit not as many people ter part of a day or a good part of a is willing to raise the price. at a lower income level as ours; and we day, and the better part of a year, it You cannot have it both ways, Mr. will let others be the judge as to makes sense to involve our schools in President. You just cannot have it both whether ours is, in fact, a fig leaf or cessation programs. To do that, you ways. There is no way to focus a tax on yet another Democrat effort to make have to spend a little money and orga- the tobacco companies, whatever you the Tax Code fairer and to protect peo- nize it. call it. I heard him the other day call ple in the institution of marriage. I State block grants—that has been it a ‘‘windfall profits tax.’’ No matter know where my vote will go. I know something that I always thought the what you call it, if you tax them, you what I will be comfortable with based Republicans were for; they want block tell me a company in the United States on that judgment. grants. They want to give the money to of America which winds up with addi- So, Mr. President, the real issue here the Governors. ‘‘Let the States have a tional costs of manufacturing a prod- is, What is the distribution? The Sen- decision as to what they want to do.’’ uct that does not, unless they just eat ator from Texas stood there and said, As to education and prevention, smok- them—and nobody expects the tobacco ‘‘All I want is one-third, just one-third. ing prevention, counteradvertising, companies to do that—that does not And then they’ll have plenty of money those are important aspects. Enforce- pass it off in the cost of doing business. to spend on all the other programs that ment, there is $500 to $600 million a The cost of the product will rise. they want.’’ Well, analyze that and you year for enforcement. But by doing this in the way that find that is not true either. Because We hear people coming to the floor this bill seeks to do it, by setting a fee the Senator from Texas cannot control and saying in one breath, they do not that is levied at the level of manufac- what other amendment may come that want to have this bill passed because it turing, you actually have a far more ef- may try to grab additional revenue. will increase smuggling; in the next fective way of constraining the smug- So the first grab may be the mar- breath they do not want to acknowl- gling of, of creating accountability in riage penalty, but then you may have— edge the very Government they are the system; and ultimately you wind you will have an additional amount of criticizing that is spending money for up doing the very same thing that money for drugs; you will have an addi- antismuggling enforcement efforts. would happen under any other cir- tional amount of money here or there; So, Mr. President, it seems to me cumstances, which is the tobacco com- and unless the Senator from Texas is that on close analysis we will be able panies are going to pass it on to the prepared to say he and his colleagues to make a strong judgment as to consumer. will stop trying to raid the effort to whether or not there is a fairness in In the end, there is a benefit from stop children from smoking, we would the marriage penalty approach of the raising the price. The benefit out- be hard pressed to say that it is only Senator from Texas, or whether it is weighs whatever crocodile tears we are one-third of the money. just an effort to try to kill this bill. hearing shed for those who are going to But there is another reason that one I am for getting rid of the marriage pay the additional cost of the ciga- is hard pressed to say that it is only penalty, and I will vote to find a way rette. First of all, it is voluntary. No- one-third of the money. Because, once to do that. But it makes sense, it body forces them. They buy it. Sec- again, the Senator from Texas has only seems to me, to recognize that even if ondly, it is a smaller amount in total told you part of the story. Here is the we pass getting rid of the marriage than the amount that people are pay- part of the story the Senator from penalty on this bill, that is not going ing anyway. Then the costs to our soci- Texas did not want to tell you. It is to stop one kid from smoking; that is ety as a whole, which will be reduced right here. The one-third of the dis- not going to do one thing for additional by accomplishing what the cigarette tribution of the Senator’s money on his research into why people get addicted; companies themselves have said will approach to dealing with the marriage it is not going to do one thing for occur, which is if you raise the price, June 4, 1998 CONGRESSIONAL RECORD — SENATE S5601 you will reduce the number of kids who 2 months leading up to the Tiananmen state guesthouse. By then the order to ‘‘go are smoking, you will ultimately re- Square massacre and the events that ahead at any cost’’ and to shoot at anyone duce the numbers of people who are ad- night. I have taken only a few excerpts obstructing the soldiers’ path had been from that, but I think it will help us to given. Before soldiers had even arrived at the dicted and you will significantly re- giant barricade constructed out of articu- duce the costs overall. put into perspective the sacrifices that lated city buses, large earthmoving trucks, So America has a choice. You can re- were made, the tragedy that occurred, commandeered minivans, and tons of urban duce the costs, reduce the number of and I think the tragedy of American detritus, the first wounded were being rushed kids who are addicted, reduce the num- foreign policy which today ignores that on bicycle carts to hospitals. As troops ap- ber of our fellow Americans who die, it was, in fact, Jiang Zemin, mayor of proached the bridge, someone torched the reduce the overall costs to our hos- Shanghai at the time, who said that fuel tank of a bus, turning the barricade into a raging wall of fire. The column had no pitals and ultimately wind up with a there should not be one ounce of for- giveness shown to those student pro- choice but to halt. With Gallic flair, Pierre better and healthier society as a con- Hurel, a French journalist writing for Paris sequence of that, or you can take the testers who dared raise the voice of dis- Match, described the scene: alternative route, which is the only al- sent, who dared to speak for freedom ‘‘In front of the flaming barricade, facing ternative to what the Senator is say- and democracy in China. So I will read the soldiers alone, four students with their ing, and vote to leave it the way it is from ‘‘Mandate of Heaven: The Legacy feet planted wide apart make the heavy air and let the tobacco companies continue of Tiananmen Square’’: snap with the sound of the waving scarlet Although a palpable sense of foreboding banners. In an unbelievable gesture of defi- to addict the next generation without hung over the Square, few could bring them- ance, they are naked martyrs before a sea of making a legitimate effort. I think the selves to believe that the People’s Liberation soldiers in brown combat helmets and tense case ought to be very, very clear. Army might actually harm ‘‘the people.’’ with anger. The silk of their university ban- COSPONSORSHIP OF AMENDMENT NO. 2446 Not even under the vindictive Gang of Four ners gleams in the fire’s light, and behind Mr. CONRAD. Mr. President, on had troops opened fire with tens of thou- them a crowd, waiting for the worst, ap- sands of demonstrators had spontaneously plauds. it is 11:30 p.m. and for the first time Tuesday, June 2, during Senate consid- occupied the Square to mourn the death of tonight, the soldiers have had to pull back.’’ eration of the McCain-Kerry and others Zhou Enlai in 1976. So many ominous-sound- As the convey began pushing forward again amendment No. 2446, I was added as a ing government threats had come to naught a short while later, a noise resembling the cosponsor of that amendment, how- since April 15 that most ordinary Chinese sound of popcorn popping was suddenly heard ever, the RECORD of June 2 does not re- were now inclined to view this latest salvo of over the dim of the crowd. Out of the smoky flect my cosponsorship. warnings as more overinflated rhetoric. The darkness, troops armed with AK–47s charged I, therefore, ask unanimous consent triumphs, symbolic and otherwise, of the the barricades, shooting as they advanced. preceding weeks had given many, especially ‘‘Soldiers were shooting indiscriminately; that the permanent RECORD be cor- protesters, an exaggerated sense of their own there were bullets flying everywhere; dead rected to reflect my cosponsorship of invincibility. bodies and injured people were lying in the Senate amendment No. 2446. But there were some Chinese who under- streets,’’ reported one anonymous foreign In addition, I now ask unanimous stood that when threatened, the Party would journalist cited in a subsequent Amnesty consent my cosponsorship of Senate ultimately stop at nothing to preserve its International report. ‘‘Crowds of residents amendment No. 2446 appear in the grip on power. They understood the old from the neighboring lanes had left their houses and stood unprotected in the streets. RECORD at the appropriate place. adage ‘‘When scholars confront soldiers, it is They did not try to hide because they did not The PRESIDING OFFICER. without impossible to speak with reason.’’ Most of these pessimists were from the older genera- seem to realize what was going on. They objection, it is so ordered. tion of educated Chinese who had learned were in a state of shock and disbelief.’’ Mr. CONRAD. I suggest the absence through bitter experience that the Party All along the Avenue of Eternal Peace, of a quorum. rarely allowed such challenges to go equally ferocious battles broke out as citi- The PRESIDING OFFICER. The unconfronted. ‘‘The Day the Soldiers Enter zens stood their ground with an almost reli- clerk will call the roll. the City, Then the Blood of the People will gious fanaticism before advancing troops. The legislative clerk proceeded to Flow,’’ declared one banner ... Bystanders who ran into surrounding alley- call the roll. Around dusk the Flying Tigers began ways for safety were chased down and sprayed with automatic-weapons fire. Those Mr. HUTCHINSON. Mr. President, I bringing back reports that soldiers equipped with automatic weapons and backed up by who tried to rescue the wounded were shot in ask unanimous consent that the order armored vehicles were moving toward the cold blood. The slaughter was so merciless for the quorum call be rescinded. city center from several directions at once. that rumors began circulating that the sol- The PRESIDING OFFICER (Mr. In response, the strengthening of barricades diers had been administered some kind of HAGEL). Without objection, it is so or- reached fever pitch. By the time the first drug as a stimulant. dered. troops neared key intersections on the city’s By 1 a.m. soldiers had neared the intersec- Mr. HUTCHINSON. Mr. President, I outskirts, an estimated 2 million people were tion where Xidan crosses the Avenue of Eter- nal Peace and began lobbying tear-gas can- ask unanimous consent to speak as in again in the streets. At first, these citizens’ brigades continued to rely on the same de- isters into the crowds. Moments later several morning business. fensive techniques that they had used two buses serving as barricades burst into The PRESIDING OFFICER. Without weeks earlier, and by dark, many unarmed flames. Then another order to fire was given. objection, it is so ordered. units were again bottled up around the ‘‘Several lines of students and residents in- f city . . . stantly fell,’’ claimed one BASF eyewitness. By 10 p.m. the assault from the west was in ‘‘Dozens were killed, and several hundred NINTH ANNIVERSARY OF THE full swing. As several infantry and armored were wounded.’’ TIANANMEN SQUARE MASSACRE divisions pushed toward the Military Mu- Yang Jianli, a Ph.D. candidate in mathe- seum, they soon found their way blocked by matics from the University of California at Mr. HUTCHINSON. Mr. President, Berkeley who was back in China on a visit, today represents the ninth anniversary a wall of angry citizens and Dare-to-Die squads of workers pledged to defend the stu- watched in horror as these shock troops ad- of the Tiananmen Square massacre. dents and the Square until death. The jug- vanced, firing their automatic weapons as if This is the day that commemorates the gernaut of military vehicles ground to a they were assaulting a heavily armed enemy culmination of the crackdown—very halt, allowing government propaganda to position. ‘‘Tanks and truckloads of soldiers bloody crackdown—that occurred 9 cite these instances of hesitation as evidence armed with machine guns were rolling in, years ago in Beijing, China. that the army had exercised a ‘‘high degree one after another, toward the Square,’’ he re- I think it would be wrong for us not of restraint’’ while entering the city. Such membered. ‘‘At the intersection we heard ‘‘restraint’’ did not last long. perhaps a thousand people shouting, ‘Down to take note of that on the floor of the The next volley of gunfire was aimed over with Fascism!’ . . . [Then] flashes spouted U.S. Senate. I think it is incumbent the heads of the resisters. The crowd refused from the muzzles of soldiers’ rifles. We ran upon all of us, as freedom-loving Amer- to disperse. Finally, an officer in a jeep was back a bit and threw ourselves on the pave- icans, to not forget the lessons that we reported to have yelled out through a mega- ment. ‘Did they really fire?’ I asked H. ‘I continue to learn from China. phone, ‘‘Charge, you bunch of cowards! still can’t believe it!’ Some people continued I would like to, in the next few min- Sweep away this trash!’’ A volley of concus- to stand up, saying nonchalantly, ‘Don’t be utes, read an excerpt from a book enti- sion grenades was lobbed into the crowd. frightened, they’re only using rubber bul- lets.’ But before they had finished speaking I tled ‘‘Mandate of Heaven: The Legacy Only when steel-helmeted soldiers carrying truncheons and riot shields were ordered to heard someone scream, ‘Look out! There’s a of Tiananmen Square,’’ by Orville charge did those resisting give way. cart coming through!’ Two men with gunshot Schell. This book recounts, among It was around 11 p.m. before advancing wounds were being carried away. . . . Sud- other things, what occurred during the troops approached Muxidi Bridge near the denly, there was more gunfire, and we