The Senate tobacco buyout bill passed July 15 would
create a radical change in the way cigarettes are regulated. It will be
interesting to see if the House follows suit.
With 78 senators, including both Sens. Lindsay Graham and Fritz
Hollings of South Carolina, voting in favor of the measure and only 15
opposing it, a bill to shift the regulation of the tobacco industry to the
federal government passed easily. The bill would give the Food and Drug
Administration the authority to regulate the industry, including power to
control the ingredients and advertising of cigarettes, something
anti-smoking forces have sought for years.
To seal the deal, the Senate also agreed to a $12 billion, 10-year
buyout for tobacco farmers. But this, too, would bring about significant
changes in longtime government policy. The buyout would end the
Depression-era program that uses government-issued quotas to allocate and
limit production. The Senate would make tobacco companies pay for the
buyout through a user fee that could be passed on to smokers.
Tobacco farmers traditionally have relied on federal quotas to limit
production and keep prices up. There are about 400,000 quota owners --
most of them in the Carolinas, Kentucky, Tennessee, Virginia and Georgia
-- many of whom do not grow or deal in tobacco.
It is estimated that if quotas were discontinued, about half of the
estimated 100,000 active growers may give up the crop altogether.
Nonetheless, many farmers, forced to compete with cheaper imported
tobacco, were so desperate for the money that would come from the buyout
that they were willing to go along with this bill anyway.
The House, meanwhile, passed a bill last month that included a smaller
$9.6 billion buyout over five years, the cost of which would be spread
among all taxpayers. Significantly, the bill contained no new FDA
regulations on manufacturing and marketing cigarettes and other tobacco
products.
We hope the regulations contained in the Senate version prevail. It is
high time that cigarettes came under closer scrutiny of the government.
The first priority should be to eliminate the harmful additives used in
cigarettes to enhance taste and, in some cases, to make them more
addictive.
A buyout still leaves the federal government in the uncomfortable
position of providing price supports to an industry selling an addictive
substance while government health agencies wage campaigns to reduce
smoking. But at least this measure gets something substantive in
return.
IN SUMMARY |
Senate measure would let FDA regulate how tobacco is produced and
marketed.
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