TI Federal Relations Report

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• CONGRESSIONAL ~COKD October 22, 1985 Pages S 13776-95 ConsoUdaced Ornnibu~ Budget Keconc/li~.don: Se.nate con,~sued consi/e~io~ Q[ S. i7~0, co pro- vide fo: ~ecoaci~/~ion pu~uant co ~eccion 2 of ~e fi:~ concurrent :e~o|udon on the b~dgcc [or fisc~ year 1~86 ($. Con. Re~. 32, N~n~-Ninch Con~:e~s). taking =orion on amendmen~ proposed d~ere~O, a~ folIows: • p=g~ 51 ~'22 Ke~ected:. (1) C./la[ec Amendment NO. 839, ¢o ~.cre~e dnc clg~en= ~ h~ ~ cent. (A I~olac oC o~de~ wa~ ra~ed char the ameadme~c wa~ noc g~nna~¢ co the 51[l ~d h~ v~h~do~ o~ the Congre~ionaI Budget Ac~, ~nd thus was noc {n orde2, By 66 7ea~ ~md ~0 n~ys (Vo~ No. 240), Se.~e" ~able~ a motion ~o w~ive ~ecdon 305(5) of chc Con~re~slonal Budget Ac~ with ~s~ec~ ~o the m-aendment.) (2) Mitchell Ame.n4menc No. 840, co delay Medi- and t~ {nc.-e~c the c/E~re~e tax by 4 ce~L~ ~of un~e¢ ~ean. (By ~6 ye~ co 2~ rm~ (Vo~ No. 241 . Senate mbied the amendment.) 1%~-. C~L~=F.~. Mn, Presideu¢. I send iLs ~raedi~t e c~.nsi~eraSo~ - The pRES/DINO O.~J~IC~. The The bg3 clerk re~d as folIews; ""i-he ~e~cal* fr~ml Rhode ~nd. [/~r, B~.~¢~;~ ~r opo~e~ ~ amer, d~en~ numbered ._. ttn~LnEn~ous ¢~n=en~ that fU~her re~.- lug of ~he ~endment be d~gensed The I~R~T.SDDI~Eit OFFICER. With- out objection, it is so ordered= • • . The s~,endm=~r~r~ res~d~ a,~ Iollo W,% On psge 3"~. st~d¢~ Ou¢ lines ~ thm0uch 10 m~o inscr¢ in hCU thereof the fo~Inw~n~ • ~a) ~ or T~X-~U~eC:t/0n (b> OZ se~ 5";0Z.O£ ~,he Inr~ l~ren~e (:Ode oi .El) b~" st¢lki;l~ uur="$~" b~ ~h (1) and h~arraa~ h~ l]e%~ ~hereof .,$12"~ ~o. (l=l~oa ~ ..... U~ted 8tace~ which ~e l~gved be~c~e N~ vember i5. lS~,5, and, held ol~ s~cb. date f~r the fo]~owiu~ ¢2.x~: wei~hhl= n0~; ~ote ¢~.n 3 l~O~ per ~]1~- ~d. $~ ~er Illous~nd; wel~hh~ more than $ D0VD~ per t~10~and. ¢~ 8 ~.. lnci~Ee 1.~ levitt tz. ~be~ sh~J be t~x- we~&~lu~g no~ more ~ 3 ~ ~ thou.- .%~u~, ¢~un~=n~ each 2~ LncJ~e~ or fmc~io*% (2~ LL~ ro~ l~e,~.~A pe~o~ hold hlg cigarettes on NoVember 15. I985, to wrd¢~ sh~.ll be [i~b[e £0r such t.%x. (B) ME'f'R0~, 0I" Wg'fT~T~he tax ht=. ta~ imposed t~nder s~lon 5101 of the I~ter* r~/ R~venue C~de of I954 amd s~a/l t~e due •md p~y=ble ~, DeCember 2, 198~, In the I~

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~ning give~ to s~ch term by sub~e~on C~e of 19~_ (4) Exc~io~ ~n ~A~--~r ~ cig~ett ~ ~. feted sto~ held o~ November lfi. 19S5, ~ the Dkace where in~el~ c~ to be (~) I~ o~--The ~menl made by ¢ig~i¢~¢$ removed ~/ter November I4.19S$. (c) of ~o~tio~ 283 o~ ~he T~ E~ui~ and F~C ~. 1 Re~oD~ibill Ly Act o~ 195I ~ ~e2~ed bT ~ki~ CUe "!~d hef0v~ N~vember 15, 19S5~, ~I~ CPL~E~ Mr. PTe~tdent. I am Join~ m this ~nendment by Senazors Mr~ President. I would be glaff to enter ~n~o ~ tir~e E~Tee~e~c Wi~h the floor managet~ of the biB. if ~ey so lV~r, DO~ENICI. Mr~ President, I ~ly to th@ ~en~or, ~ wotkl ~ l~t her not a~ ~hia- time. ~Rhough m ver~ 8hor~ order I bet!eve we ~H be able to do that. ~, C~, If I UnderStand, we have 2 hours anyw~.y; us ~hat correct? The pEESIDLNQ O~I2!CE~. There • re 2 hoz~ on first-devoTee anlend- duczi%-lty eae~ yes.F. C~g~-ette sr~okiilg 0o5~ t~xpmye~ $-!.~ bil~ioi~ a year through Med/ca~e and MediCaid P~O- gr'ar~, Dr. Gerald Osier, ~n econo~ns~ wi~h ~Iiey An~L~, Inc. of Noston. tes~-- fled before the Kouse Ways and Mear~ Cora~tt ee In June of ~hcs ye~ thaC reimbu~ement to socmty for sll of ~e~ COSTS Wo~ld r~q~ir~ an irl. crease in the cigarette t~x to $3 per package, and reimb~semen~ for madi- el~l C~e Cfl~t.~ a!oDP~ would re~t~I'~ al~ Incre~e m the t~-x to 30 eent~ a ~ac~- age--~n additional 30 cent, M-v. P.~esiden~. I am only a~k~ng for S cenm additional, making ~. tot~ 0£ 2~ Cel~t~ Medic~i evidence of the incidence of tobacco-rela¢ed diseases among tmera of cigarettea demo~trate~ the corr ela* tiO~ b~tweell SI~0k//Ig ~d iD_C@e~ed heal~h c~re eost~. An increased Feder- al excise tax on cigarettes Ja a ta~ im- posed O1% tOD~CCO U~el~ lot ~ r~:$ul~- ing e.xc~ health ~-.xe ¢o~ts they Lr~o~ on ~r health C~r~ s>g~em~[n O~he~ w0rci$, h~.v~ those wh(~ ~re ~S~ ing the excess cos~ be~" D~rt O[ the burden--p~r~ of the bUrden, i%In Presi* de~t; nowhe~'e ne~2 th& ~n~[et~ burdem • ment~. All o£ ua clearly have ~'~ in~ez~st in 1~Ir, CH_~WEE, Evenly div/de~L Nit. president, the amendment I Dr0motingbetterhea~th~ntheg~nera/ h~.ve S • poptfiaLiono the- lonK.~e~ ben e~iL~ for en~ to the desk ~Rd cosponsored by Senator~ BL~C~_~. , ~.~T~ZEZ~, federally £anded hea~th c~re Dr08T STA~RD ~!~, ~Fld ~IL~DL.v~ ~nd W 3xe clea~'. ~X~ the~ tlrAes O~ f~e~l ~.i2E* are o en'to~them the~e • ~ li ~ eterity, we m~c ~os~ly examine the tion on the numbe that heal~h c~re eost~ imposed o~ t~D~v- r c~ COSDODSOr L~ this-- r~vtde3 zhat the CZuTent exeis er3 b~ ~oba~co Imers. The detlclt f~ - P . . • - tL% on ci e~tes of ~ • cre~2g ~ he~t,t~l c3/2 $]~endLrlg ~- cents eigs2ette tax per package. COR~rlb%tt~ ~/lO e ~s. they This amendment doe~ n~ earmzik Inl~oseonoUrhea/theareprograms. the revalue ThL~ ~endment w~U de- ~O~ On/y W0l~/d ~n increased excise def h tax on t~L~ prodnc~ be fair and hel~ cr~e the e t y an additlonBJ. $~ . . . ]~ fl]/0~ over the ne~t S ,e~:~ reduce the deflclt, h~t It~ Wi]/ aL~o help The thrus~ of *~hi$~amenclmen~ fs d~courage~mo~In~ ~wofold: FL~t, We need the additional In the Tax Equity and ~isca~ Re- revenue. ~Vhen we ar~ running" m dell- spor~Ibility AC~ [TEI~P~A], the legk~l~- tit th~t has been estimated between tion we ~a.~ed, Congre~ doubled the $17~ billion ~nd 8200 billion fol" 1988, I think we better t~J~e every pe~ny we can find. The second r~r~onale /~r the ~n~.end- ment, ~LI-. President. is ~-~ increased tIon. i~ ,~l~leu ray] y amor~__~ the younger DeoDle. an01 ~rcvenr~B them fror~ being cf~re~te addicts for the balance Of their lives. ~ach of l~s, Mr. Pres~denC, whether a t~.oker- or hoe, ~Ry~ ~or ~he health C~-e i1eed.~ 0~[ smo~e~+ either tllrOU~l~ i~e~h i~l~t~r~nc~ pr~miuiR~ or- thro~.g~ our ~axes funr~e}ed in£o go~ ernmeng Dr0gr~L~L~ Which c~r~ for ~hc~e ail~ng a~ & result of having" ~/~lok~ ~n excessive number o~ ei~- reties. According to the Off~ce of Teehnolo- ~$~ss~fle~. ciggzette ~mo~ng ~c- coun~ for $22 billion i~. medie~l c~re costs ~nd $-~S billi~n u~ 10st economic prodllc~Ivlty each year~$22 billion in medical costs, $~3 bllIIon in lost pro- excise ~x on clearest es from 8 c~nt~ %0 16 cents for s S-year period ending O~ Cober i, 1985. In "C~rette T~Xatlon: Doing Gou4. by D~ing Well2' ~uth~r Kenneth %~arner sts.~ed ~ha*. the do~. bling Of the exc~se tax c~.u~ed one ~nd ~uar~er million adult Arner~:an~ to stop smokLng and one-half nd]lion Ce enagers t,~ sCOQ or not's%8/~ sn1(~ l~i~g. Teenage smoklnE decreased hy l~ per- cent. AdulC smoldmg d~cr~ed by 4 perc~ilt, B~ helping to discourage smoking, a~ ~ncl~s~ed exci~e t~.~ will hel~, im- prove the overall he21th of the coun- try. CIg~u'e~t~ smoking is the N~. I pre- ventable C~i/se Of death ~lld d~sability i~ thin coun~ry--~h~ No. i cause. That not dL~u~ed. Over $50+000 Ameri4 ~ d[e of smokin~-r~!~ed d~se~es annually. HL~e rn~iUon peo~e suffer frora e~./Dmio bror~¢hi~i~ a11d efT*phi'se- mi. due t~ smoking~ Anyone Who h~-~ e';eF seen R s~/ffe~'er Of e~'1~h~sc~..a knoT, s wel~ "~lle r3~vages Of ~hat disease. O ~A

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. Oetb~r o,~., 1~83 " CONGRESSIONAL RECORD -- SENATE S 13"/77 in~[ L~ 8. deCi~i0tX each o~ us Should tl~. A.~ociatLon (y.w.c.A.t o~ tt~e Lr.S..~_-- atricu~n~--a aro~e-~ionM or~lmizatlon of q~- .,~,,e a*'ld that CO.~l~re~s ~|~oLild IlOt be ~t~ or~ni~at*on o1 2.5 million meml~e~ ~nd teo~athl¢ I~h~cian~ pro~idiI~g caFe to Chic, ~2xlel~m'lt~ working to promote e~lt~. $u$- dren. artemis,!lag to i~fluenee these deck- ~tee. aetme. ~reeeom and dimity 10~- a~l ~. ~¢ciati0n o~ ffunior Leaguer--an ~i0ns throLl~h an excL~e t~x. ~owevei'. t~eople, but particul~.rt¥ for wonien anti interlx~t~o~l ~'~men'$ %olU~.teer or~a*M~2.- which have ~ &.rea'; impact on al] of so- cle1~y--~mokun~" fa]Js int~ this category as I pointed out by the deva~.nd~ i~ s~:~erd. l~ ci"~les a.n ~.~cre~s~d denlan~, oi% OUr he~P.h care system, much Of whleh is subsidized by ~he Fed.era/ (3ov~]~Dx~1~/it. ~]/ of i/s. whetheP w~ smoke Or no~. p~-y for the health ~e needs of smokers--either throu&'h in- s%il'z~t~e ]91-~mi~J~ or our t~xes. ~arly this m0n~h I held s heatin~ o[I the issue of an in,retake in ~he ~- re~%e excise t~x in ~he S~bcomn'd~e on Taxation and D~b~ Mm~.~ement. ~t Was ~/e~ ~t~n ~h~e het~ng~ %h~.~ £here is ~ gr~t dedi of supI~ort for an ili~re~.~e in th~ excL~e tax ~rom • wide variety Of hea~tll Org[uniz~£i0ns. I have s. |~s~ ~f ~4 he~I~.h 0r==aniz.~ t[ons th~ are interested in the ifl- el'ease in finis t~x. It, ran#'es from d'~e Amerioan Cancer Society. Amer~1 Heart Association. Arn.eHcs.n Lung AS- so~i~.tion. American Colle~-e o~ Obs~- ~ri~isns and ~aeco]o~-is~. American Cdil~Ze o~' Ph~ic~sm~--~1 ~[ ~h~ rne~.t irn2niner*t he~I£h or~.~diz"~ioDs in OU~ .~atlon. ~.~r. President, ! a~k unzJ~mous con- se~t to h~ve p~ntcd in th~ R~O~]) ~he li~t ~ or~'aniz~.tlor~ suppor~in~ ~.n in- ~l'~'~se In the Fe~er3l cig~2e£~e exc~e There being no ob]ecdoru the ~st was ordere~ t~ be printed in the T.~x - i, American ~ancer ~ocle~'--the world's I~rg~st vOlunta~ ~leS/~h s.ge~y, devoted Io re~2~ ed~tion, and se1~a'c~ to tl~e 2, American Hear~ Ass~i~.tion--one of *.be la~g~s% ~ol%L~ta/y heal~h ~neies h~ ~e U.~. and ~he only such a~enc~' ~ha~ devot e~ a/l of iLs re~%~fce~ to t~e goal Of l'eOu~itd~ ~rernature de~.th ~id dls~t)iI]~y title tO cSr- ~i~ o ~ ~ular dlS e~.~e and st.~oke. 3. A~le~L-.an Llmg- ~ia~io~--~he n~. ¢omnlitt ed to ~]]e ~event ion ~nd ~ont~o[ o~ hi~g d t~e~se. a..l asnoeL~ioi% o! Over ~0.0~0 ~rnmunJty he~iLh leade~ r.nd health ~ro£e~ions]~ wor k~n~ for Lhe p~]ic healt I~ ~. American As~el~.~Io~ o~ Re~ired i=~". s~--the [~.;~e~ oi~/z~Jorl re~i~erltlZlg inlet the needs Of ~he o~d~r ~o~u]a~J¢)[1. ~. Association of St~e and Territorial [{e:clt.~10[ficiAj~-tl~e ~role~sional o~r~L~.- titan re~resenti~ lhe chief ~e~d~h o[flciIis of ~ery s~ale ~d ter1"~tory in ~he ~nJt~d 7. Chfldren~ Defense Fund--~ national ~ ~ blic ~h~r~t ~ tha~ provides ~ ~tron~ a~Id ~ fe~i~e ~oice fo~ ehil~ren ~nd ~dolezcent~. p~'tieuiArl~. ~h~S~- frt*rr* .9~o~" ~nd minority f ~r~ulies. in Dubli~ policy forums. 9. N~iional CoUncil on the Aglmg, Lne.--o. r~ dona] o r g~.atat ion reprt~en~Jng provider~ ~f ~..~ce~ to ~h~ eldea-[~ which ~et~'ea tat ~t on~ older !~ Olmll~.~i~n. [0. Natior~tl ~.g~lo~ ~£ ~Iementary School :F./~ncip~.--~ profe~aiona~ ¢~malt~- at~d middle seheol ~rittci[~.k~ in the United ~.~e~ and over~e~ ~tad l~e]ie.nn~ tha~ ~.he pro~ ~d ~'ell.b~in ~ of the ehfld m~x~ be at the foref~nl of all eleme~ttu'y and raiddle seh0ol ~la..a~ mid operations. 1]. Amenca~ A.~oclation o~ Dent~l ~hO~L~rt 0rga/nzati01~ ~reseY/ting ~!1 sixty dent~l ~cilooL~ it~ ~he Uiu~e~ ~a.te~. their fa~ul~l~ a~d ~tttdent~. mad the~ d~lat.al h~erle ~d hO$ pit 81-ha~d f e~klene~. ~rOgT~mS. 12. A~m~ea~ IM~etes Assoeiationqa na- tional voluntary h~al~h ort'~i~0n whO~e t~o.~old unts~ioll L~ ~o Sflppor t the search for preve.'~ii0r~ Or cta~e .¢o~ d/~*be~e~ anld to jm. prove ~he weIl-~emt~ Of ~eo~le who h~ve d~- 170.000 ~embers* 5500 profez.~ionoa mere. be~'~, 58 ~f~I~la~e~. ~nd 'Sil0 ctlapte~ l~..~eric~n Medtc~] Student. A~oci~o ~Jon~'l Ln~ependen~ or~m/lizat]on of more I4. Ad%.~n~t i:le~]~h N~twor~--pecple tion i~nd dtree~ a~is~ance, in ~00 cent~..~ col~nec~d wi~h Ad~,~ntist chutc~e~ and $chooIs ~[To~.$ ~he c ooz~t ~.. .15. Amerlca~ A~0~iatlon Of ~refen'ed ~l&t~on o~ ~oi~Det~ive ~lteIna~iv~ he~dlh ~r~ deiiver~ ~5"~t em~. ~u~e~--a~ ~9 12riva~l~ ~ Dubli~ly funded ~cer c~n~I~ a~o~.~ ~he courtly, pro~n=~ r esea~ch, care. and ~e~tlhag. 1~. Amenca~ Academ ~" of Aller g~ alad I~1. mun010~--~ prof~i0naa o~g~.mzatlon ded[. eaLed to ~he adv~a~¢~e~ Of knowledge ~d practice Of a1ier g..~ an~i Ln~mv~olo g.y ~nd Dro- ~.i~LnZ ~t.t~r e~.e t~ ~*.~%ima ol ~ es~e~. 18. ~P~ and Allergy FoLmdati01x Of ~eri~...-a nat~onwi¢le ne~wor~ of over 10t} Cha~er~ and ~appot'~ groups ~d ter~ of thoO~and~ o/ conce..~ed uidl~Jdu~L~ banded to~e~het. ~rtLh ~ COI~O~ r~i~on ~o e~Itclj. care a.~b.m~ trod aiierl~c dtse~. ~Jon~4.00~ ~h'~iCI~A~A~ eottC~aed ~'t t~h d/~es. 20. CenIer for ~cie~'e in the Pu~l!o ~nt er- est --~t ~o f~LL~ter adv0C~y membe~hip Ol'g~. ~Lz&t~on tha~ s ee ~.L~ to I~uprove n~*~l¢~n~ ~]i- eie~ w~h re~ard to he~dth ~nd nut z'lt ion. i~r~resentJng ~proxmaateiy 149.000 k~divid- ual membem, promot~g ~he soltxtion 0[ e01~ t~azait y g*l~lel~$ t b2ougi% ~OIU~ r~a Cy t.l~- Izan in~ol~.entet~. And ~I~ilXLt~g mernb~ to he effective voluntary i~artlcipants in ~h~ir corr t m LL~iti~'~. ~'I. ?q~*iional Perha~tal ~*.~oelatlon--an ln~erdL~i~LLqatF ¢~rgau'l~L~l~ of pro~e~i~n a~ provid~ health e~.~e to L.~au~ts ~d pr ~gTd~2%~ w0m01~. ~8. A~aemc~a~ Academ~ Of OIoI~r~ic 2A. 1 el.~a~ Org~iort of l~ b ysI¢la/~ ~eci~* E~ip~ in the t~.~me.qt o~ the ears. tao~e. Lh.'ott~ and ~elJ~d ~Ct~FeS o~ ~he he~d and ne~L wl~h 1.200 rn em0eim. ~. Amer/¢a~ ~oc[ely of ~Iineal Oneolo- gy~-LS00 ctlni~al oneoiogL~t$ s~ecia]lz~ l~x ~he t ~L.~¢~en~ o~ ~macer. ] ~.~Mes~ ~fes~[o~ ~oeJ~ t~oix represent~n~ re~istered htt~m~ ha the country. ~j~h 18fi.000 member~. ~l. ~erJ¢~ Society of In~ernal ~edi* cL.ae--repre~en~n~ 18.000 ~h~'~a~ ~ho cerned ~th t~e aoeJoa~ot~m~c* of medioai care delivery. ~Z. a'~a~i~nal A&~oehttI0~ 0~ Children'~ ~ospit 8.1s and Related Inst tl~iti0~s (N&Cl~I)--rel~re~en~ 8:~ ahild~.n'~ hc~oi- taJa na~ [c~d~. I~ go&[ i.x t~ ~er ~.e aa aa ~d- voca~e ~oi" L~*. ~l.o %.ed c.h~[d h~lth ~d the de- li~,~ r~ of eomDrehe~ive q~Mat ~" h~lLh serv* Ices for ~1 ~h~dren. . ~3..~ma~m~ar* C~lle~ Of ~he~ ph.vMel~ (ACC~)--L~ ~ pI~f e~tonal medical s!~e~iali~:: ~ocie~ l'e~re~tllXg l~aol~e ¢2xa~. 11.000 ptty- ~i*t2~.s. ~ienti/~r~ a&d edu~o~ s~eeia]izin~ L.~ ptllm~n~r y ~.~d ¢~.r ~Lio~ a.~Lda~" dase~ea. 34. ~elJca/~ Couaacil 0It ~ci~r~¢e ~rl~ I~e~&lth (ACS~-i~ ~ r~lona/ cortstm~er education ~oci~t~on dh-ec~ed and ~d%'t~ed b~ • panel o~ ~ien~L~ L* f~om ~. v~riet ~" o~ dL~- ei~lln~- AC~ L~ ~m~ait~e4t I~ provld~n~; eon~umer~ w~tla ~en~ifica~lI~ ~:~.l~.need ~V~I- ~t ~.~iolm of L~s~te~ r e[~t.mg to food. chemicaL% tl*e envirolame~L ~a~d h~dt ~t. ~. American Academ~' of L~atci~---ml or~an]z:xrion ~| ~7~000 pedl~nckan~ de~l~al- ~*~ ~.~ '.he h~th. ~.fe ~r ~ .~eLL~ ¢~[ u~ fsalt& chfldrefL azid adolescents in Not~ia. central mad South A2aerie~ 36. The United .NIe~hoal~ ChL~ClX ~grta~en~ of ~um~n WeLters---The ~'ttited i~e~hoc~t. Church ha~ 9~ ~aLL!lon memt~et'~. T~e De~atrt~txt of ~LL*n82~ R~O~C~ iz re- Spol'~ibie f01" the Chttr~'$ I~O~tiOIL~ Ot~ L~ues of ~ub]/~ health ~ad ~o11¢~'. 3~: &merma~ L/eermad k~ticgl NU~m~s' more ~ht.~ ~.000 ~¢e~med ~r t~.eLlca/ mad v0ea. tJ0n~ I~ tll~ ~iao pr~de b~0aid e I t t~i~kl~J ha ~tin~s melu~n~ nu~ln~ laome~, hospitals. ~ iL.lics. ~ntmt~t~lt~ health cer*t ~t~. 21. As~oe~aIion of ~hc~$ of ~blio :~8. 2L~aerle~a C01]e~e of Cmrdi0lo~--A ~e~th--re~tld~ ~he ~ ~.ec'tedi~ed I~.000 member, non I~rofit ~rofe~ionaImed. gTadttat~ ~hooM of ptlblIe hea]di in the ict.I .~ocie~y and t~.chin~ l/L~ti~utl01% ded~. Uni~ed~tate~. . c~ed t~o elx~urmt/ o~tAmal care fa~ Det.~on~ business eo~ition e~ae~i~ CUtTen~ ~ttx the /~otentia~ ~f ~eveloDii~g c#~diov~2~lar refOIT~. Wl~h 1.~00 ~L~h'l~ slembel~, dlse~L~e. ~d th~oo~ ~du~tio~l ~At~d ~C:O- 2~. A~erie~al _a~o~l~tiort ~or ~ttsDit~.tot~ ~-o~or/lle ~eti~itietL rat. oon~rib*atiIt~ sih~oi/'l. The~apy--~ 2~000 2memt~e~ I~ofe~onal a~- caaltl~. ~o I~rewntion ~f e~i0~,~cular dis. xocia~i~n for ~espiratory tl~e~py p~c- e~se. ~4..~19~1¢~1 A~emy of OtsI~r.d~golo~ tlo~8~* or~anL~a~.lon reiir~e~tha~ ~pproxi- g.~--Hea~ ~: N~K ~kal~ery. ~i/c.~a ~i'ofe~ /r~stte]y 3000 :eg~tet'~ pr0fe~ior~t*l n~I~e$ ~on~l ~o¢~ttion ~on~rned ~lt~ e~c; ~rtd ~liied he~Ath pt~fes~l~ llXvolved ix~ thr08.r~ ~.~, head ~.2~d 1~eek ~url~ei~'. v;ith ~ lt~odaaities Of care aftd ~t1~er~. tta¢lud- appro2~l//~te]2t "/.~(~0 Ifle~lbe~. i~g h~o~ia]~t~, g]e~itoI~.l ~U~lysi$. Krtd ZZO013

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Octobe ....... ~.? 13778 CONGRESSIONAL ~t~.CORD -- SENATE ~ ?~ : ~- trar~ntation. GI Datier~¢~ ~itn renM ~ds. The su~:¢y ~.E~ fo~.-7~ that ra0s~ Amer]- TheSE are jtl~t some of ~Ile hea~:h 40 N~.~ion~A Alliance uf ~nior Ci!i~en~. I~c.~ n~ on~ n embers p ~rg~nL~ 0n ~hf¢~ focuses i~ ~t~cR~[on on m~Jor [~ues ~f~,~ng older .~car~; it is ~.L~der~e Io ~oP~P~2tive in Dollt icT~ pilil oso ph y, ~z~ II~ nlon~!Is, a m~Jor .~ncel~. As rn~n3, I~ 75~ Of ~h0.se Do,led t;aid lhat ~ley reg~r¢' la~m- 01oymen~ 05 ~t k~g l.oil/Ig ~ue. Sllll l:iore. 80%. exDect, the level of i~fla~ion to inEu- spoKderlt$ ~aad L~atiogl wotild t)e ~.I i~ 41. Terry O0~theJf Lup~ ~'e~e~it It,ll. pre~ent level at the e~d of 198~. A.n~ While tuI~--est~b][sh~d Io he1~ ~JllioO~ of 11/13~ 2~. iGo~t for ~* lllgher ye~r.ev.~2 i~. o211y vic~ in lhe wol'id and ~o encourage. CO- l~%thottgh~that thelevel~ouldcb:op. ~rdirt~e. Rn~ ~.irect fLlttlre pto~o-e~ il~ ~he M~.~y o~ those DoIle~ re~ ~ntl%in~ed etiol0~y. '~.o$i$. ~d ~re~traeftt of th~ ill- t.h~3; bt~ine~ ¢~:cll~ie~ a~l l~.dtlis pri~ileKe~l 13¢.¢:~. p~itioyt 112 Ar~er!¢~2 $~iety. MO~ ~ht*~ ~2. A~etle~n Medi~ &s$c~i~tJo~l--~ v~l. hR[~ ~id ~hftt coE2ptJItel do F*Q~ D~y ~notlgh UJlt~i'j sm'Jety Of phy~i¢i~r~ ~o~ded ~o Dgo- ~e& whil~ severl o~2t of t~tl ~houg~ th&~ mot~ and [mDtov~ ~he sgience a2~.d &r** of ¢~rp~e nlanRg~ wer~ ovetpRic~ & ~.~ble ~ed:c!ne ~¢i tb~ be~ei~ae:l~ ol pub[~e ~ajority ~vored rak~L~ buSIneSS t2*xes i~t heail.h. WiLh ~roxL~.~.te[y 2~0.000 nl~..a- order toc]o~ethe~qdge~g~~ ~e~. ~h¢ A~I~*~ v$0ri~ aeli%.ities ~*re direct. The $.J2~'ey showe~ ~z~ much Of Lhe ed toward achiev!~ e.~ceilence among phF- public wt~ ~¢a.~ed by he 1981-82 r*.ge~ion ~Icl~ ~d a&~urt~z ~e .~merlcan ~uDh¢ of and remRu~s wary abo~ ~e ~u?2ook /0r ~he the ~Ighes~qual~ty.medlct*icare~ssible. future, lh~11y 80% of those qu~¢io~ed 43. America~ COile~ of Qb~tetrlctaP~ & ported no iraDr~vernen~ in he r ~ta~da2d 0~ 9yl~6~o]~gt$~.%p. OI'W~RtlG~ teDi'e~el~~. li~g over the I~a.~ yeats. Moreover. people's trig ~e~ 25.~ ~te~:ms~:~ ~a~4 ~]ner~i~.. expectations about how ~hey wli] fare in ~he ~ who Sp~clal~ze m women a health care. ¢¢~m/ng mo~th~ h~e b~-ely Im~rm.ed since 44. Am~rtcRrt C0~[eg~ Of ph~idl~.~ the deplh 0~ the ~l~r~.~ I]2 m£~m~er 1992. i~2. C~4~. *N~r. ~esideEtt. I would .Some 50% ~aw better days ~*head for them- aiso l~e to point out r/tat ~here is a grea~ de~l O~ SUI~OI~ thr0ttghou~ Out co~ry ~Or ~.~ increase in the, e~,~e tax On cigm"e;te$, In February of 19PA, a poIl found Lh~t 77 percent of reg~- ~ere~ vo~el~ supported art ~ncre~e ~. ~he tax to 32 ce~s a D~CI~ Th~.~ is only ta ~4 cen~ I ~s:¢ u~-~:nou~ c~!~ment tha~ the Ti.~e n~g~ine ~r ~icie d esc1-~ bir~g these results be Dr~$ed in the REcoaD a~ this po~L ThePe balng no objection, the ~.~icl e ~ ordered to ~% Dl~t~d m %he %v~lue th~ %Vhii~ ~ol~e fe~l~ ~.md VCall Slte*~ fret.s ~ut runaway federal deficit& ~lll ~tl-~e~ i~ doep]y co~el~l I~o. 'I~e efful s~'~l e4 ~he gene~ ~ublic'a fea~ ~boqt '~he Ollt]Ook for ~he U.~. ~l~onW. ThJ~ w~ the m~t fh~g of ~. new poll conducted for Tlr~e by Y~kelOvlcl~ Skelb, & White. The st~,,ey Of I.~R ~g~te~ that nearly 90% '~iew the defielt~ ~ a seri- au~ ~on~c problem* Even mol~. 95%, ~[der ~ngre~ ~,~ be re~nsible for the ~7% bI,~a~ e t~e~dent Re~g~. W~en re~pOl'~¢RL~ ~e~ ~ed Wh~.~ should be done about ~ne deficits, Ovly a fraction favor,~ eu'~ting ~1 spen~,u~ Tl~ I~ Jorit y sa~l ~h~ IheF t~ollld prefer to t[on, t~eF l~iected ~ i~r~ [t~ p~n~tl Selves when questioned then. compa¢~d with ~2% todd7. ~'£h~ public la ~esz 1¥ ¢on~e~ned ~c,~t ~.1~¢ future of the economy, y~nl~elovtch found th~ ~2% beli~'e the recovery chat g~t ur~der way iu~ over ~t y@~tr azo Will ~rove Uo be ~.~mpoFg, rg. O~l!y 10~, on the O~he~ ~and, $~xI =hey ex~e£t ~he economic I~npro% er~en~ r~ ~I2~L ~,Ir. CyLa~'EE, hfr. PresidenL I have talked generally abotF, the healt]l r~k~ involved with cigarette srn0~ng, I WOUld lik~ t~ take R lnoin.en~ to ~ more specific. sMo K~NG F~CrS First. (~ver 350.000 A~lerica~s die each year of the effcc~ of c:~reLte smokLR~: Th~ is 1,000 every day, SeCond, Cigarette smoking co~s o,Ar society in exc e~s o~ $%1 bll~isn a/muM- ly m he~.lth care cosf~, IOS~ work time and los~ productivity. Third. ~fore ~h~n one out of everj seven de~ths in th/s ¢otmtry are- ~k- ing related. FoUrth. Eighty percen~ of MI long c~.ncer de~.ths i~ this ~ountry are c~used by s~lokJ~g. Fifth. Cigarette sr~okLn g catmes one- third of all heRF~ 2Asea.se deaths In this ~ ~un~5~ ~Jl~ h~-~ d~ a~c~xtl~t ~ for nearly ~e~hR!f Of al~ deaths. Six. laerha~ RLmos~ I0 percert~ of nil persoil~ tqow al~ve---~ 2~ rilRlJ0n Arller - ic0ns--may die pre~natttre2y of hear~ rL~ a~ogiat~d v~'i~ cigarette a!!~ek* !nO. And all of them cost the Fedet~: Gotern.~. ent P.lOrley. They either cost th~ Goverrmaen~ money direstly through prog!'~n~ like ~Iedic,~re and ~edic~[d, or t~rough Lr~reased gram~- tl.,21s in 13riv~,e h~al~h iil~ll~8~ce ~or which we pr oyide a tax deduotion. Why Is it argued that It is wrong to a~k those individuals who src, oke to pny a lit~!e more~j~Is~ 8 cents moro I~er package--f0r t2%e c c~st s ~ey impose on the res~ of ~ls? One objective to raising the excise t~x is ~L~t~ R is regres~ive--~hat is it af- Iect~ the ~oor, mLnoritles ~-nd the el- fler~y m~re than o~her &~ouDs. ~e- se~ch by Dr. Je~fery ~.rTis of ~he 5~ea*saohusetts I:~titut e of Technology' h2.dlCa~e~, however, that lOW-LneOme Americans smoka Ies~ than midd!~ income Americans. Profe~or Harr~ ~0 finds that older Americans have much lower smoking rates than ~he keneral pODUIa$ioD. Pie a/so found tb~.t Lu c~r~iderir, g the nmml~er of ciga- rettes smoked per day, the actual dollar burden of ~ cigarette t~:~ in- " cre~se is greater for white~ ~han for ~1 a~'~s hn every Lucome category. These findings a~e confirmed by the I979 Surgeon General's repo~ on amokin~ av.d b.c,.It h. That repar~, decu- mended that s.'r, okin~ rates arnonz mrle~ are highest among middle ine0me 1~vels. while smoking rates ~or women rlse ~ead!ly wlr.h Income. The poorer the woman, the :e~s l]ke!y she ~s to ~moke. In ~h0rh the cigarette t~x fails rno~t heavily on people who ure well able to afford it. Lf we look a~ cigarette excise ~axes ~rom ~ ~oiscal pe~'e the kn- crease we are proposing in ~his amend- raent is clearly not extreme, lrffla~ion ha~ resulted in a reducflo~ in cigare~t e taxes in real terms and as a percentage of ~he Price of ¢isarettes. The Federal excme tax was lncremsed only twice during isle ~$t-wax ~eriod: From cents per pack in 1950 to 8 centa in 19SI; and from 8 cents tO 16 ~nts i~ ).982. This trar~lates to a declLne Lq th% ~x r~¢e measure4 t.n 19~ d~It~ from 37.S cents in 1946 ~o 8.6 cem~ m 1982, folIowe~ by Rn incre~e to 16 cen~ in 1984, The ~ederal tm~--a~ a percentage o£ the price per package of Income ~axes ~.~ ~ me,~Is of Deducing the shortlY21, ~y far ~he mo~ po~,/}2/ r~venu~ "[~1~ Qt~es~ioned were ~tlrpdslngly ttn~mo pres.~d by the 4rug) ~n h~ fladon, whicl~ turn* blect f¢om 12-~% ~a ~fiS0 to 3.8% [as~ ye~. atl~flflmg 44% og ~he r~12deflks wer~ t~n. ."0w~ ~p. OU grit Ih~ the e~d Of spir~g D]:i~ had ~ffe~d ~hei~l ~ Io~ ~gh~JF rnor~ i~ one-Lh~r~, by COC4g~, ~aJ~l l~e bre~ in tn* f]~t~ofl h~tci not ~fec~d t~le]~ ~.t R~L Whe~. 3=~ ked to pick re~ for in/q~ ~on's d~iine, iwo.~hil'ds ci~ofi lhe dro~J u~ oil pr~c~ ~s onus@, ~ome 59% rn~io~te~ ~l~e r~zess~ And high m~employ~ent, wh~l~- 54% S~,~ dl~ea.~e attribu~:abie to cigarette zmok- cigsrv¢'ce~le~lined ~rom 42.2 percent i~g. unle s~ smoking habitS ~re , to 10.7 percen~ betw~n 19~'~ and 1982: changed. It now stands ~t 18,~ percenL about ~even, L~s~en to this st, R~is~ie, Mr, the same r~te as in 1975. !vIind you~ President. ChiIdren of smoking par- cornpaxe tha~ ~:0 wh~.~ l~ was in 1.~7~ ent~ bt~ve an inerea.sed risk of br~nc.hl- 42 percent of ~he cc~s~. tis arid pneumn~ e~.rLy i~ li/e ~m,d Nc~. 5~r. PTesident, cnother ~.r%~t- ~eem to have a small bt~ m.e~stiFADle ment we will be littering to today is ddfferenc~" lit ~he ~z'ow~h of !u~ func- Ih~ ~ increase in th~ exei~e ~.x will tions, sigTm/ the death knell of the tobacco Eighth. LLsten to ~:hls one. N[atern.al f~rner. No one who ~u~por~ a~. 121- smoking during pre:!~l~cy ~igm~ic~- cref~e in the ex¢:~e tax "~'a~ts to see ~y increases t~he ~ o~ spor, t~.neous these I~2ners baz~A'upt, lrt fsct a aho~ion, nii~carrioge, bleeding cRu2ng ma~or reform of the tobaCCo Drogr~n pre~mcy, ~ill.biri:i2; and ~udden is par~ of the reccncIIL~ti~n legisl~tt:on i~fan~ de$~h syn(h-O~l~e, w~ are ¢ 0125i~eflP~g tod~y. 5 Z001367

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• Ottober 22, $#85 . " CONGRESSIONAL RECORD-- SENATE $1,3779 BUt. th~ f~t ~ the% Con.~arnption Cent or ~20.O0O teens. AS for those that an increase in tax on cJgsrettes .&-ill continue to decrease without t~D~s slnendment~-a/~hough Drobmbly at slower r~e. I don')# ~hink the£ we C~ in ~c.od ¢onm~}ence. especi~/y in ~he~e d~ys oI[ ti~me~o~ d~fi~Tz. ~ote on th~s is~Ii e b~-ed on R desire to oontinl/e eI%coura~ing the DrOd'Acti{)i~ of a ~rod- t~o~ ~haL r~Bi~ in such hzI~e hes/T_h c~re costs to t~he l~era/Gove.nu-nenL Mr. PresidenL how much ~irne do I The PRE~IIDING OFPIC~/£ (~Ir. ~a'n0kerS aged 36 ~nd older, ~30,000 would have d:e e£fec~ of reducin% tile WotUd q'ait if the excise tax were in- ¸incidence of smoI~in~ in th~ coun!l~,, creased to 32 Ce*'Its per pack. in ~.ddition to the health conse- q~eP,¢~s Of Smoking, • ),he ~oRolni~ co~ts are enormous. The Office of T~chnoin~<~• ~$E4~I~1%~ e~tin~F.~ ~$ ~h~ disem~e ~nd los~ pDoduc~iviky from smoking COS~ OUr economy $$~ bIuinn yes.r. Ths~ ~s $2.17 for each D~Ck of cigaxet tes sold. Cigarette t~xe~ h~.ve ~rt int.-resting &nd ~eop]e who h~t*e r;ot yet started o ~A%o~c) peso e who ~llght ~ecol~..e smoke~ in the con-/ng years. I th~nk ths.t IS a.n imporE~n~ reason in 8uDI)oi~ Of th~ ~%naendment. [ thi,~.~: it i~ C|~ri# ~tLsti~ecL It is good ~ublic DOUCy tO tI:ore~e the £~x. I a=~rc~ With ~he Senator ~ro~ ~ho~e island that this is an inerea .~e which is re~onab!e. SY~L'~SL The 8ene2.or confrols 4%' r~ul- h~toi~. ~/Irsl; imposed during the C.~vil ute~. War. Zhey were raised ~enod~c~/ly Mr. CHAg~EE. I~Ir. President. I yield until 1951. Between 1951 ~.nd 1982 clg- wh~.t~ver ~L.ne the ~en~.t(~r ~rom N~w are~te e-x~e tax~ remsJi~ed ~In. Mexico desire~, changed. In 19~2. Con&~:e.%s ]pa~ed ~he Ti~e P}E~LDING O~CEP.. The Tax E~uity and F~mcs/ l~esponsib[lity Senator from New Mexico L~ recog- Act. whiehisbetterkno~n~TEF~R~%. hired. • ~A i~ised the cigar et 5e excise ~.~ -~. BI}IC~.C.~2~. Mr. Pre~idenL I from the 1951 8 cent tax ~o I~ cents wi~ ~e ~usL a few minur.es, if I n~.y. tmtll OCtober 1 o f this year. C%zrren~ ~r. Presi~enz. I ~u% i}leased ~o join law e.x~ends ti~e !6 cent tax until NO- with th~ dlsthn~shed Sen~or from v~raber 14. I~ is interesting to note }~hode Island. Senator C:~L~-~ ii~ of- tha~ if the ci~'~r~tte t~'{ had been ferkng this smaendmenL I ~elieve ths.~ r~/sed ~o keel) Dace with Lnflation mnce th~s is ~n important and r~cessary 1951. we ~ould tod~y h~ve • ~ of 32 me astlr~- c~n~ per pa~}~. This ~Ine~(~mf~i~t This IS ~ strai~ht-fcr~m'~ ~-aend- would tame fhe tax to m'dy 24 cents. mont. It ~row~(~e~ for an i~exe~se in No e~rmarkJng of funds is Called for the cigarette excise ~.x from 18 to 24 cent. wish no e--rmazking of fund~. I~ is ~. ~r~.g2~3.~ic ~l%d r~zon~b[e step toward ~ddressing ~. ~erio~ ~hre~& ~o the he~/th o~ thiS Na~iol% ciz0xer~t~ sm0ktn.g. Be/ore I go on to explain why I be~eve this tax wLll benefit ~s at both ~he i~(ilviduaI and nmti0na/ leveIs. I ~0u!d like to draw the Sen- ate's ~.~ten~lo~ to %Vhy ~:e Ileed to ]0o]£ at this mR~ter In the broader conL~xt Of health promotion. In the l~ndmmrk puh 'dc~t2on ".'~. ea[t hy P¢Opis.*' the Surgeon Gener- in this amendmenL I haDpen to be. iieve in earmarking Iun~ raised by tax such ss this to address the c~.~ses • nd effects of cigaret ~e smoking. Earli- er this year I untroduCed leg~iati0n which does just th:~t. I hop~ that ia!er ~his ~e~tr we ~ %'~r~f;l[ly ool2~ider ez.iT~rk~g f~r~ds for ~edic~re as well • s for henlLh promDtion ~.~d dkqeg.~e prevention. A~ ~his time. ~hough, Mr. Pre3ider~t, I ~,m $)le~Sed ~hat a simp]e il%cresze of the elgaret~e exci~e Lax is before the ~en~te. Pu~.aliy, some will argue that ~his is al outlineci the strong re!~onship be- ~ re,restive tax and inherently unfair. tween our lifestyle and the new health One may argue that excise tRxes such problern~ f~cing us aa v. n~on Knd • as this ~re l~deed regressive. IKowever. listed 15 ~riorl~Ie~ %V~ch mu~t be ad- the qaestion of the fairness of an dressed: C~:garetbe smmsking IS one of excise L~x on cigarettes can on/y be sever~/ r~sk f'a~o~ that contnbL~Zes to the in,easing in~denc~ of carcLfova~ eul~r disease--the NO. I ~ttse of de~.t h in America. CI~;.rette ~m.oklng ~s the NO. 1 I) ~'ve~table cause ~f d~th. A~e~cans are beeen~ng [ncressingly aware of the hes/th threat posed to this Na~on b~ cigarette smo~n~. This ne.v heg.lt~ coD~toltsi~.~ ~ei~ ~h the ind~vidu~l and the n~.t|or~/ tn~er- A~ the L~d~Id~al |e~l..~. P~ de~t. cigare~e ~mo~ng win 350.000 Americans this year. Thls hnrean t~}l from ~rnoldng c~n be pre- vent ed~ I~eee~.t ly. H ~.m.'SXd UIzivers~t Ts /ns~ture for ~he ~Ludy of Smoking Be- hayer and Policy era%eluded tl~mZ an ~xelse tax on cigg~re~s is perhaps the mos~ ef~e~e available too| to dolor smo~ag nmd tD red~ic~ Smok/l~g re.~.t- ed C~S~ to the ~der'~/ Oov~raent. If we %r~c.r~e ~ ~.~.x. ~he ~i~.~ eX- D!~L~3. cig~ra~t~ eo~ulnpLica~ ~:ou]d drop c~ic-a/ly, e~Deci~/l~ ~mong tax ~e~se woald d~ the nuazber of te~ge smoke~s b~" 17 pemo ar~wered accur~.tely ff we look ~t the effects of eig2~ette smoking on aIl fl~21el'~C~tD/;, smoke.-3 ~d no~s~22oker3. Is i~ fair that nonSmoke.'~ ~ay bil/iors of dollg~rs in taxes each year to hel]~ cover the heRlth c~re co~s incurred by smokers? I t/~/nk not..~Ir. Fresident. Cle~ly. i~ is not fan-. ~rnatever unfalr- ne~ rnny lie in ~. cig'~rer~e excise tax is. I belie~'e, outweighed many tim~ by r/~e unfair bur~en~ imposed on all Ameri~ by the high mcid~nc~ of sm~k-Jng in OUr soeieSy. This [$ nc~ R !~artisan L~ue. t ~m- m~nd my colleagues ~n b~th sides of the ~.[sle wh~ h~.ve worked to &ddre~ thL~ m~.~ter both on the floor and in com/nit*~ ee. e~DeciaI]y the d~tin- guished ~enator from l~ew Jersey. ~n~tor Bm~DL~Y. and the distin- ~u]sl~ed ~en~tor from Rhode Island Seu~tor CF2.~E and I urge all my cot- lea~e~ to sappor~ thi~ sxn ~ent. Mr. President, let me 7err briefly say t.bat I think the ~rim~ry thrust of thv argtrmen'~ thRt tl%e ~enat~r fr~:n 192~ ~ de Isiand ~ made is c~ec~ tb~ L~ th~ the ewi~e~ce is c~erWhelming It is not excessive in ligh~ of the PAs- toric tax rate that h~ been imposed in th~ country. The 8.mendment shouId be supposed by t~e Ser~e. I ~ha.n~ the Senator for yie]dh%g. ~/[r. CFL~~E~. Mr. Pr eside~t. 1 thank the ~eRa~or fror~ ~ew ~k[~XICO fOF those ~i~e ren~%r~ The P~F~SIDL'~ OIr~qCE~. Who yields time~ Mr. DON[ENICL Mr. President. I ylel~ the tinge th~.~ I h~ve in oppo~/- tion to the dL~tinguisbed cha~rrn~n of the F~nance Commit~ce~ ~n~.~or pAC'X- WOOD. The PRESIDING OFF£CER~ The ~enator has that right. T~n5 Senator from Ore~om ~tr, PACKWOOD. h~r. Pr e~i~te-*t L let me explam the situation regar d~n~ the tobacco tsx and ~he Tobacco Pro~T~u~a in th~ r coon c'.liation bill. Admitted!y, putting zhe Tobacco Program into ~be reconciliation bill is unt~su~[, b~t iz is no~ unhea2d of f~r ~. CoR%.,~ittee [0 de~,] wi~h r~gtteI"~ In ~,/~- other ¢0narnittee's ]ur:sdiction when ~)r~viously C~DDrc~ved by the chafr~ll~n Rod r~mki~Ig member of the second conln~ttee. The F~n~nc~ Corn.mi~tee did it 2 years ~go en ~he Airport Devel- opmen~ Progr~. The Commerce Comrr~e, which had j~-risdietion over spending of the money. ~ked the Finance Comrmttee, which h~d juris- diction over the rai~ng of it, to ]pu~ the matter into reconcl]iation, At that time, the ADA1= Program h~d uniform s;1Dport "oy ~Im~ every- 0~ [I~ ~he ~enRt~. 'r~er~ w~ no s.er]- ous objection raised to the procedure because it had been requested by the ehR~lTaan ~und rankin~ member of the Conlltlerce C0~%~T~i~e. The ~?.~ce Coma~it tee did it aa an accommodation to ~he commerce C ornmit%ee. Th~.~ i~ OP.~ p~u~clenL I~ is ~ v~lid precedent. ~Nh~t ~he F~s~nee Commit- tee C~Jd then in%,o~Ved nothing more or le~ th~ul wh~t %he Ccrnmitte~ did by pu~ting ~l~e Tobacco Progr~n in the Fi- r~anc~ Cornm[%~ r~ci!i~.ti¢i1 pack° Rge ~t ~he request of the ch~irnlan and the r~ruking member of the Agri- culture Con~aictee. The preceden~ is exactly ~e ~me. ~/hy did We do it? We knew tha~ if, we at~cempte~ tO add ~r~y ¢ig~re.'~e t~.x ~0 ~. bl]l DB~sed by Zl%e HCe~Se. We would face ~ f~ibu~ter and we ~ould face • veto. We ~lso knew !{l~t the cig. ~rette tax explred ore. the 1st of Octo- ber. For theae of ~s wha ~n~nted keep the cigarette tax ~ I~s present 5Z 0013C,8

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CONGRESSIONAL RECORD -- SENATE October ~2, 1985 the thousands of small family farmers WhO depend I~pon ~O~aCco for a SIib- . stand behind the agreement which ha~ been made between ghe Finance Com- mittee and ~e Agriculture Comml~. tee, We ~ave s~ruck wha~ we ~hink i~ ~. fair bar gai~l so that each aChieves par~ of what wo wanted to aChieve. Other- ~e. neither of u~ might have been able to achieve ~y Dart of Our objec* rive. 1~ ~ms perfec~ example Of the art of ~om DroFi2~ Therefor~ I would o~pose She effort ~f my ~od friend fyom Rhode Island tm incre~ the t~haeco t0~x t~ 24 cer:~ or to an~/¸other fisure tha~ may be suggested. I believe we have r~ken good ste~ for the c otmr~, ~ big a S~D ~s we c~lld have taken. I do not ~hink w~ coold h~ve p~ed ~he 16~ent ciga- rette ~ax s~Rnding by i~elL I think the tax woul~ have gone down to 8 cents s~an~ial portion of their incomes. _~h'. ~esldent. tobacco in all IL~ f of*ms h~s been. and r~mains, the ~no$~ heavily taxed ~ingl~ cons'urner prod- uet. If eigaret'~e ta%es are further in* e~ed. rngny e~gal'e[~e me2111f~.e[~r. re~te prices. ~dll likely turn to cheap, sub~idzed, forei~,n-~r~dueed tobacco. Th~ woU/d hur~ noc only our farmers. but a/so the U.S. balance of trade. In. crossed ~o;~ao~o ir~po~ wo~lld meR/i less U.S. tobacco purchased domesti- caUy. Thousands of small farmers coald lose ~heir m&i~ source of income th2ohgh thlS Ic~a of business, In addi- tion. our belt.nee of payme1~ts would suffer. veloed it standing ~/one In any event. We were able to add i~ to the reeon- cilia~io~ inr a~,o%h.~r reason, We coUSd also see the po~ibili~y of the Gr~ra2~- l~udm2.n amendment being en~led. We COUld see t~le need for additional Rudman amendment wall finMly be en~te~ i~ at th~ momen~ being d~ter- t~cd by a conference betvceez~ the House Rr, d the Senate w'itl~ members from ~ com~ittees in the i~ouse and thzee eom~u~tees in ~he Senate. On balance, considerl~g what ~'e hopefully will dO on the deb~ c~illng. the comBromi~ stx~ck between the Agriculture Comr~/tt.e~,+o and the ~i- hence Con-m~Mtzee is a fair arrange- mentinr~21concerned- If the U.& Congress further kn- I am fuIly aw~xe tha~ there w~]l be or¢~s cigarette taxes ~.nd ~.he maau- another time wllen we will again visit, facturers do not abSorb all or at le~t the i~tie of 24. 30, or 36 cents a pack part of an increased cigarette tax, the eigare~te tax. This is n0t the time or Lucreaaed l~rice will primarily impact theplzceinrit. Iwouldhopetha&tny individuals ~th loW" to moderate in- colle~'ues weald turn do~ the comes. A2though some groups have amendment of my good fAend from ar~.led thaZ the cigarette t~x Should RhodeL~innd. be incremsed becat~e a higher price The PRESLDL"qO Ol~ICEl~. Who would forc~ these consumers to smoke Yield thne? I~. I b~e':~ th~ m~% p~ple will The Senator from Rhode Islan~L continue to smoke, whatever the ec~t. Mr. C~. ~/'. President. I listed Personally. I do not smo~e a~d do noz ~th ini.eres~ to the ~ccurate'deSCrip- encourage others to smoke, t~owet'er. tion tile disfingUished ch~zrnan of the do not believe that it is soUnd public ~!nance Committee gave. but I do not policy to use the tmx system saa think he meant to give zhe impression m~r~ of dIctatk~g the smoking habJr~ that this is a bargain that everybody cf the individual. in the Finance committee wa~ In- ~Ir. l=residenL I ~2rge rny ¢olleague~ vo[ved in. Cert~.inly. Z ~ meyer L~.- voNed in ~ny such agreement. Indeed, to oppose this increase in ta:~es. as has~ been pointed out, I mad~ the Mr. HELMS addressed the Chair. motion for the 32 cents a pack and was The PI~,~LDLNO ~FFICEI~. Who defeated. BU~. tl%ere wa~ nothing thaz yields time? subsequently tr~Isalred that rn~y be~r. PAC~V;OOD. I Yield to the Senator from North Carolina SUCh tL~e ~a he may desire. - The PRESIDINO OFFICER. The Senator from North CarolL~a~ Mr. HELMS. Mr. Pres£den~. I thank t~e chaivm~ and I th~Jk the Chair. Ylrst. I Wi~h ms' distinguished friend (l~r. CIg&F~E) a happy birehday. I con- f,. however tha~ f hol=~ l~ will not be too happy when th~ vote is ~ken. The Senator is my good friend. ~e and I were talking a few minutes ~]2e ~I~12Hle12t here is not a~o~E rebec- or the mel~r~ 0f srnokmg. I have n~'er e~Rffed ~ ~g2£1nellts abo~lt ~a~loking a=~ health. None o~ my chil- dren smrJk~s and I hope none of my 8randehildYen will. Wha~ I try to brfng before the Senate~ Mr. Presiden~ L~ the prevention-of the livelihoods of s~rne 2~,000 f~m'n~ inmilie~ Who ~re d@pende~lt on ~h~ growii2g income they e~.~n by t0bac~o. As for S.~nator C~'S amendment. whert tL~.~ ~a~ ~eo. yielded b~ ~r ~ed br a ~ombination thereof, a point of order ~L! be ~i~ed. and f suspect It will be suaSained. Of course, the Sena- tor will be within his ldghra, to appeal t~e ruling of the C ba~r. Let me point ou~ that in my Judg- ment. this a~12dr~el2t ~ no~ ger~aan~ 5; Z0013 L erA! ~XC&~ tax on ei~tes fxor~ the 16 cents per pack DroWded for in the reconciliation bill to 24 cents per pack. The 16-cents~De~pack tax already represent~ a doubling of what current L~W would establLsh. A~ my colleagues know, the additional 8~ent~-per-pack t&x W~.S sohedtfled to s~u~et ~his year. However, the Senate Fip2.uce Coronet- tee h~ ~ropo~{~ a pef2Tl3nerl~, extort* sion of the ~dditional 8-cent r.ax, making the total permauent tax equal to 16 cen~ per pack. In SO dome, the eonur~ee al~ [i1c~:dd~ to. the reeat~4 cflla~i0n bi£1 a sect!on which ~'oUld aChieve a much needed ~a~d important reforn~ o~ the etlrre]~t tobacco pl~ce ~uppoft program. Incre2~ing c~gz~ret~e ~:ax~ beyoDd the Fccorflr/l~J2d~10n Of the c0mmis~ee, however, woUld hRve extremely detrLu~ental effect on

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iOctober 27,, t985 • " CONGRESSIONAL ~CORD --SENATE S 13781 The ~obz;Cco pro~lon of the budget tlon therefore bec~me a package. I re- chance to sur~ve or whether 'xe are recone~ation hi]/ merely strikes the luet~ntly gave my support to the IS- October 1, 1~8~, datg. l~taLh,e to the cent ~2.x l~ exch~e for ~ refor~ Of so.called sur~ezttng of ~e ~X. The theprog:~un. effect of ~z~.~ng ~e date is to m~- I w~ll ~Ry tl-as, ~.r. t~esident. If ~'e Cain the Federal excise tax a~ 1~ cents, can ar~ompiish tb/s. I be~AeTe 1~ ~i.li b~ bu~ th~c amount is not mentioned. H0- the last t/me Lha~ at le~t th~ Senator where fs tl~s legislation IS ~here & pro* Will be on th/s floor txY~ to referee ~Mon which spec/fica$/y se~ the tax the Tobacco Pr0gr~ I thLnk th~s ~fd a~ 16 cents ot 2~ ~y ~iher level I~ L~ do the job becaP~e it lower~ the sun- my mn~2er~bam~mg t~t t/~e oaly port ~r~¢e t~ below the m2.r~et !evel :~]ei2d~2~n~s Ln order or~ :~ b~/d~e~ l'~co 8~ld ~he ~xce~ pr~oe hs.~ b~n the onciIi~ti~ b~ll ~2e those to s~2ike or to c~use of the problerm So I thimk it is ch~.~ numhe-ns aad dates or to l~m/~ bmpor~nt t0 emph~lze the benefits or r_~sr21ct the s~ope Of the D~V/SiOD3. o~ nlaint~i~ing the ~obsmco package i12 This araen~e~t to lug-ease the ~1.-( it3 entirety, umamcnded ~nd tmm.odi- ~bove 16 cenLg adds new pro~%Mons to f~d~ the bil feather than striking ~/~e entre Th~ agreem%ent Lh~.t is the basis fo~ previsions, ~nd does not ch~mge ~- the t~baccu legislation is a finale.ned. ber~ or change d&tes or lim/t or re- deUcately ba/anced ~nstrct~enL I~ IS ~c~ the ~cope of the pro~dz/ons. In t~he product ~t months of v~x/ous fac~, it coldd be ar~aed Zh~t Lncres3i~g mad constant ne~oti~io~.~ amcn~ the She ~ax ex~K~d.~ oy bro~deDz ~.h@ ~:~pe ~fowe~, r~6. ~l~et~ r~A~ufRctur~r~--- of the ex~tln¢ excise tax provision. "everybody across the sl:~ctrum. If ~O, when the time ]92£ expired one a~nyone here t~|t 12~.~ been e~y to way or the o~her, either by y~elding 1~ b~k or usin~,- it, • l~mt of order cer- talnly ought to be raised n~/ns~ thi~ amendment, perhaps by the distin- ~UShed chairm~n of the Cou~.u~ttee on P~n~nce or the di~in~ui~hed chmr- m~n of the ComZ~tte~ on ~he Bud~et-~r I ~h~/l be glad ~o do it. Prelunm~ry to tha£, Mr. !=resident, on behRlf of the app~x'~nately 20~.000--some esth~. &fez are (h~.t ther~ are r~ many as 300,00(]--~obzeco fa..'rn- e-'~, I l~.Ust o~*~ose hi~ 8~lendD~e~t, ~%3 the Chair ~l! rec~l], i~ w~ my zmend- men~ to the Tax Equity and ~s c ~/ ~e- s~on~ibLhty Act of 1982 that called for the temporsry 16-~en~ Federal ex~t- ing tax to suP~et back to its o~i~m:~. level of 8 cents on October I. 19S5, T~lere~ore, it is somewhat Of an ~*iom. ~ly for me to ~o to ~OB PACI~W'OOD ~ I did a/Id dJe~ss the srran~ement that, v/as eventu zl/y Klrlved ~L The ~tln~ ~rovision which- I added to that 1982 act w~.~ ~, ~sitlon to which I w~--s c~t~d. I felt ~h~t t.he ~unse~ shou/d ~e place. ~U~ tnne ~)~.~ses ~nd el2~/D~stan~es ch~2~e. H~re in 1885, I find myself repres~ntLng juss ~bout every~)ody conce-'ned in ~erms of ~he Drodu~on of ~ob~.cco advo~aling that ~ m~m~e¢ provist on not be hnpie- mezlr~e d. HAvin~ snJd ~h~t ~ President, iX the repeal of the m~ns ec prof.,/on %ve~ lJke/y he t~nsidex~d ~d the concez~ w'.~s to ~void ex~ended debe£e, we ooll- eluded th~.t tob~-~o ~TOWerS deserved some degree of pro~e¢~ionlr~m the ~.d- verse eff~ ~f the ~.x iucr ~e. It wss fei~ that the ~ost aD~r~Dr/~te Way achieve th~ w~a ~o ~end ~he Fb~-n~ C~imi~ee recor~t~.tlon package to Lndud~ our tobs.cco ~r~gra~) Drov~- sio]33 ~.~ ~. CD~I~IdO/~ m~dre to the 16-cent per~ne~ tax. Tha~ was e~ tir ely fair b e~u.~e ouz ~"~gn~ were ~- tended to estabUsh ~, diree~ ~e be- twe~ the ci~A'et~ ~_~ In£Tesse ~d. ~enaLo~" PA~W~2OD l~S elo~'AeIl~ expla/ned ~, the ref~rnl of the Tobac- co Fro~r'~s. The 16-ce~¢ e~L~e t~.~ the To~-mzc~ ~r~ ~d£f~- br~.~ KU these people together, let me a~sure ray ¢0llea~*~es it h2.~ not been easy. We cotmted up not i~g ag~* ~nd~ s~nce the fL'~t of this year, I h~ve Der- ~ on ~dly been involved in oTe~ 100 meet° L~F:~. cordoned, studies. S3]d tele- ]~ho~e cs.l~ o~ an h21~or~ant n~.$ur~ c OD~.~TJ/2~ tl~S refor~ of the Tobacco Pro~ram. Many of the par~ioiD~-n~ in t.he development of t]'/~ package have been d.~ggcd k~ck~'lg ~-~d ~cre~rnl~ toward wh2,t We h~ve now. The ~olnl~ is th~ I do believe that with rare e~- c~pLiom mc~ Deo~!e u~derst~nd this is the er/y ~y that we can ;~reserve th~ ]/v~lihoods Of th~ people ~ whom I ~n~ interested, q-n~t i~ the ~rol~p Of up to 300,000 t ob~cco farmers. C~lrette ~s/%tt~ct~re~'s h~ve i~l~de cleSx to me ~hat they ~11 not par~.ici- pate ~ the buy-~uL of the SUrpl~/S stock~ in st~bfiizatlon if the gigurette tax goe~ ~bove 16 cen~. ~o that blows ~/s ol~t of the ?.~ter ~ ter]21s of ~v/r- lug the r~formm that glv~ ~ any h~pe Of restor~on of ~ subst~ntl~/ ~ort trade ~nd ~ the other b~nelI~ to our economy. ~o I have to fight ~s beat I to Dyeserve ~h8 D~ck~ge ~h~t Sei2a- tor PAC~K~'00D a2~d o~he~ ~d 1 ~.2.ve worked 0~t. Let ~'~e S&y here 8~d now th~lt ~ g~ateful to senator pAc~rwoo~ for ~U the coo~er~.~io~ he h~.~ ~'~ver* us. "I'i2e bu:;~ou~ L~ an Lnterdependent p~v~ of the Tob~co Pro~ reform. T.he ne- ~tiated package weu/d be severely d~ged if the comp~nies were forced to t~Ke & w~/k a~ z~ r~.~l~ of the tax rK~e of 24 cents. One more poL'lt ~J'ld I sh~!l eone!ud e and let the others speak~ Every s~ep of the ~-ay I h~ve ende~zor~d ~ act Ln good f~Rh, and h~ve. SO ha~'e those w~h whom I have dealt, and not ~.I1 of thema are entirely fr~endly ~ my pos~- ti~ NO~ all of them are entirely f~iendly toward m~ p~tior~ kll~ wher~ we .h~%'e dJs~gr~e~ we h~ve ~.%'reed to ~./s~gr~ 8.gree~b~y, ~o we come r~ ~2~ point .q(~w wher~ w@ ~e gOL']g r/) ~x/r~ over tObRC~O ]2~d;~C~ioIl to fozeign producers ~:~h a!! of [.~s L~- ~l]cations. .~fs.n$, press re~orts, including uhe W~shln~on PO~L indicated ~ome th~ back that the Presidvnt was going to veto the 45-day extension of ~he ci~a- rette tax. The President end I had conver~t~on, znd I am grateful to him for hL~ ]udB2nent that he OUght to go a~ong with that exte~.~on. Now, ~he PTcsident has a/zo--amd I ~/ ~7 this because it ough~ to be • mai~er of reCord--gone on ~ublic record as being Ln¢lined to veto even a Dern'm/2ent ex- ter~fon ~f the cig~met~e tax ~ the cur- rent level of 18 cent~. Now, if he is going to veto *.h~.~, Wh~.t ~II he do tO Senator C za~/~'s proposal to elevate it to Z4 eels? Now) I c~m-not ~ ~ nc~ ~sk ~h~ President to s~gn ~u~ng greater than i~ cents, Another remson why the tax should not be increased Is t~ ~he budge~ reconciliation package is already ~2.S billion over in ~roJected s~_ving~, Now, ~r~cr/ve t~rget to make up any short- c~ming~ in rev.~nue, but ~ccording to the statistics avai!able to me the Senate i~ living up to its obligation without z.ny added t axatioI~: ~nd we all know how ~he President fee!~ about I do than~ ~he Senator from Oregon for yi¢!ding to me. The PRES~IN~ OFFICER. %~Jho y[e!ds ~ Lrae ? I~I~. pAC]~*V.rOOD.~ yield such t~:~e a~ the Senatc~ from Kentucky may Deed. The PRESLDI~G OFFICER. "iq:e Senator from Kentucky. Mr. I~ORD. I~r. PyeSident, I thank the distinguished manager of the ~ill, the Senator from Oregon [Mr. PAC~- WO~D], for allowing me ~o have some t~*me to ~ on this fs.sue, "~nL~ is probably one of th, e most lmporr~J3~ Issues t~ the con.~kueney that I rel~re- se~t~ I~ LS a~ important to my State ~s is, ~o the d~nguished Senu~0r from P~ode Island. jeWelery ~nd silver and S~ver pI~e, ][ ~ S~12~ he does not wsau~, a tax placed ~n thos~ Just a~ I wan~ no I~dditiomfl t~ on cigarettes. Bu~ let me ra~ke a couple ef ~oint~, if I m~y. Mr. P~-es~den~. We have worked on tl'ds Dackage for ~ year. Many fine peoD!e in my S~a:e have traveled from ~own ~o to~n hold meet- Lugs on this l~ue. Our farme~ h~ve pitched Lu and hm'e b~n able to hire some peopIe to help pet some lem- ~l~ge tog~'~her thaz WOUld ~e ~e- able to ~er~ They h~ve come to- ~ther ~ith manufacturers. They have s$~rlfk~d t~ th~ niece of leg~l~tion that we a:e hop Lug to pa~s as milch ~s any group of people in this co~/~ .~rI. They tunde.~mnd ~h~t thm~s change. They understand th~.~ pe~.ple h~.ve to ~'~mg tm deelde whether ~he 250,G00 $o give and to sacrifice. ~u% they do rot 3~,000 ~obacco fa~erz ~q]l ]~ve ~ h~ve to give all thell b1~d. 5BZ001370

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13782 , CONGRESSIONAL RECORD -- SENATE October :72, 1585 Let us lock at what we are attel~p~- ~'Ir~t, ~e h~.ve increased the basic Tobacco price support progran~ a¢- ing to do w~th this amendmcnL I think the farmers, the ~Powe.~, ~nd the m~.w.ifaoturers I%~ve arrived ~.t ~2 asreement. We reduce the SUpDt)rt price approximately 3~ cent2, & poulad. Thax is ~ goo~ ~.nd substmatiM red~c. titan. T~'o, we have ~rrit'ed ~ ~ ~Agr ce- ment to elil~nate the surpltus of to- b,tees ~er ~ period of time, Three, we h@.ve ila my opild(~ia allo~%~d aDproxi- mtt~ely $2 billion to come back to the Commodity Credit Corpox-a~ion, The GAO said that this bill xvou]d ~&ve. from the tlme of its enactment in th~ fiscal year. in 3 years $235 million, o%'er 5 year~ it ~'otdd be 8~00 mellon. A~d four~h, we ia~ve impOsed a new ~X 0]% st~okc!ess t Q~8.cco. }For all practical purposes the addi- tional 8 c~nts is a new t~.x becaume i~ should have ~unsetted on September 30. The :President ha~ ~en{. word 1;/~at he L~ not very happy with ths.t ex~en- si0n, bu~ hopeful/y if we can hold it a~ 16 eenr~, the companies then ~211 be part of ~l~e ~.w:eenlen~, $nd ~tle ?e=~la* tion w~l b~come laW. We mu~t lOOk at tha~ sraa/l fanaer, -~r. President. W~ talk about damag- ing Ii~le peo~le. ~n my ~ta*e, there are approxtmately 101.000 small farm- e.,-5 wi~h all avocado of thr2e-qus~el~ o~ itn 8.cr~ of tobficco--tlaP~-Q~rters of :~n acre, Think abou~ tha~--~ small ~m~II piece of income. And we ~.re s~.ylng here today ~h~t We not only W~It to iI2creflse the tax to ~ce wh~t we ~vei¢. we wai~ ~o ir?cr~Rse i~ ~22r~ times. We are sa~4~ng to tb~t small farmer, who asks very Uttle but pa~s a 10~. to go out of i)tashaess. Oh, we oxe ~oin~ ~o hear tb~ is fDr our heallh, bta~ we at@ tlot ~r~uing hea/th, we ~.re arguing tlie ~urv~val of rsbt~Cco $.nd the cost. due to increased taxes, the I~ purchas~ af durnestiC ]eal. Let me say this to you, Jolt. Presi- dent: If this legi~la~ion is defe~.t~d-- a~d it ~ill be defe~ted if we increase the t~x beyond 16 cenL~--there wfl] be .no Tobacco Progr~trm Just think ~ou% it a little bit. All tha~ mu~plus will belong to the Goverrmlelxt ~2xd we call get rid of it the bes~ ~ay we can @.t a. c~st of $4 bflllon. When you c~.n grow rob@coo fror~ fence row, ~0 ~e/Ice ~ox1~, a2W a~notln~ that¸ ~'ou v;KIl~--t~er~ is nu limatatien--th~ cost is going to go down. R'O~ can buy generlcs now. Oh, ~e have been told on zhis floor today Wha~ c~st, cigarette smo~Lng h~ been ~0 the t~xps.~e~ through .~:~edle:are al~d ~tedicald. Well,-le~ rae ask this quest, ion: if ~he heaisll groups ci~i.~l tha~ ciga:ret/e sr~oklng has cos~ the tax: second, ~'e have taxed smokeless; third, we h~ve reduced the ¢os~ ts the ~eder~l Government. and hiur~h, if ti~ ag?eeraent is ~'lot held, then ~;e S~'e ilo tob~co pro~. OUr f ~l'~ep~ wfli vote i~ Out...gli of ~he cost~ o~ the sur~lu~ tobacco will be borI~e bF the ta~ay.ers ~ ~. whole. We hi,re g prO- po~l~l to work i~ o~t and to save a~ lea~ $3 bilifon--at lea~t $3 billion, Go to the GAO report, ~he blue boo~ le~ me read from the Comptrol- ler General's report, Ig say~, as it re- latas r~ who would "0e paylng in the future: B~use a prog'ram is no longer in effect, any I~es on ~ t ol~eeo. ~o ~he extem not OffSet, By ~r~%'io~sly collected ~essmerlI~, ~.roUld be ~md b~' r2~e taxpayer. Should flue.c~red ~.=¢i burleF ~roducers ~L~o decide ~.gzd, l~t approving ~ pr~gr'a~. ~het~er in re~p~e to a~ incr~ed ~c~p men~ or for ~ome ot~er ~a~ lut~e o~- ~e~ment~ ce~d not be placed u~*n them, umd t ~xpaye~ ~ould be liable for may losses that occur on nue-~,~ed ~n~ hurley tobacco ~r~def lomb. SO if you begin to look I~t all the facts mad try to ~2/*dersgs.lld t~, we have offered a whale of an opportunity to save ~h.e taxpayers money. Wlay kiIl now? We tlave come more than half WS, y. S*[I~/lOW yoI2 wRnt tO ~0~ th~ ~-K on the little fellow, tile th~ee-quarter ~f an acre small f~er. 101.000 Of them tn m~ Sm~e. You wffi ~tand up and ~quea/ pretty good when we offer a 2o-percen~ tax en some .,c~eir~ and ~Iver ~'~ Silver' plate. I can hear ~he z~ueal$. I can hear everybody sa$~ng, "YOU csn't do th~ tO u~. [$ ~ otlr maiD. ir*eo]~.e" Well ~his is our n~Lo incor~e in oLur State, e~peci0J/y in the rural area. I implore my colleagues: Let us not go this route. We have m~.de ~n agree- menL Ih is good for everybody con- ceraed. It hurts the farmer more th~n an~'bod~' else, The grower is hurt more than ~nybody e~e. Ye~, we keep want- kng tO do a little more. ~U I have hear(1 toda~ is "fan~ crisis," "in dehg." "hard ~h~eB." Yet, we stand on ~his floor and ~ttng to put a little more hard tLmes on zhe little feliow in the f~rm con'daunit y. t yieid the floor. l%¢r. PAC~WOOD, Mr. President, ho~" mu6h time do I have remaining? The PRESIDING OFF/CE~. The Senator has 30 minutes and 51 ~ec- on~. Mr. PAC~'~VOOD, I yield 8 minutes to ~he Sem~.or from Nentueicy, a~d ~hen I ~all yield to the Senator from Virginia- taxpayers S4.2 bfl]ion through ~A~edi- /~r. ~cCO1TN~ I thank the Sena- care ~nd _%~edfcaid. th.e total co~t to tot f/~m O~egon. the chall2nan of the the Federal GovelnmenL of M.edisa/d ~t~ance Cnmrnlttee, and. I thank ,%rid Mecd~re Programs for fism~J. 1984 esDecizJ/y for his ttndersta.nding and ~.'~ approxinmtelF $82.5 billion. If to- cooperar/on in tills most Lraportant t:~cc0 t~se,-s "amoLtn~ ~o o~dy $4.2 b/I- iszUe to ~. number of tob~ec0 S~a, te~. lion. tha~ c/early raeazm ~here must be As m?," eo]/eague from Kel%tucky has ~. group OLIL there respo:b~ibie for a, said very e!oQueIl~ly, whet* you ~re l~rger pare: of i~. . talking about tmba¢co ms it. rel~.tes to /~ec me ge~ doWr* to ~he ~oiu~ chg&t is /Cen~uok~, .~u are r~'l#ft~ s.bott~ ~he ~o hnport~nt--the pack~ge: b~is o/out econo~ay. count for more than 9 percent of the " lobs in the State of Kentucky. The to~al cash flow of Kentueky'~ tobacco crops exceeda $I billion. Indirect bene- fi~ from this crop amoun~ to Over $2.5 b]ili0n. Fully $ percent of Kentucky's ==ross Stat~ product is dire~tW deper~dent on eonthiu~ton of the q['obacco llrograrn. Just ~ i-perc~nt ios~ itl tobacco output causes ~ 10ss of 545,000 Jobs and $25 million to K en~ucl~.v's economy. LO~S ol the Tobacco Progra.tn would . cutme ~ ~ec!ine of over $1.5 billion in farm/and values. Fu/iy $130 n'J/iion in State tax ret'enu~s is ge~le.'t~d as ~t dire~t r esu/1: of thlS pro granl. K~I1tuck~ county g0~'~r~e~t5 would lose $50 rcAlllor~ in property t~x revel21tes without ~. Tob~,cco Progrsy~. This less wolald be partieo/arly devas- tatlr*g to IOCal school sy$~:em~, county services, ~nd ~ount y roads. O~'er 150.000 Kentucky farme:s prodnce tobacco, snd 250,000 families ~ha.re in ~he proceeds. It ~.ffec~s 5¢7 percent ¢~f ~entue~F% 3,8 mAllion oitl- zeDs. Over ~wo+thirds of Kentucky's fS.IT~el~ de!u~d ola tobacco prodLtotion for over 50 percen~ of taheir gross This is even more s~gnificsmt when you realize tha~ 75 percent of Ken- ~v.c~.~"s farmers h~ve ne~ £~ ?i2corn~ of less than $10,000. Tobacco produe, tlon aceount~ for 12 Percent of the em~ plo~Tnent Ln ~entueky's 10 poorest the ~entuck~ aveI~g~. F~Ta Supply dealer~ would be devas- tated, as over 40 peI~e~ of gross S0.1ee, ~ze ~]~.t ~d to ~obacco produc~on. On a eoLmty level, the l~ of the to- "oa.c~0 prog'TS,D2 iIx a I:iloder2.t~ tobacco county would account for ~ loSS of income roughly eqL~/ tO W'b~ ~he new General Mo~ors factory is expected to brlng ~ SDr ung Hill, TN. },~r, President, I tl~nk that puLs the i~utt in Derspect~e in terms of the hnp~t of this crop or, Kentuqky. What are we talking about in this debate? The Issue, I a~ure Senators, is no~ smoking. YOU can e}irnIp~te the tobacco DrO~'~L YOU can r~ime the cigarette tax, as ~he cUst ~nguia hod Sen- ator from ~.hode Island ha~ suggested. There wall ~U be smoking. Wh~t this whole ismm is related to is ~he welfare of the farme,'~ of Ken- ~ucg.v, North CarolL'2a, virginia, Ten- nessee, Sou~h Carolina. and neighbor- mg St~.tes. who make s. slgxlificmnt ~u~ttnt o~ their income fror~ ~rowing this legal er0p. There is ~0 gOOd alter- narJ.%'e in many part2, of our State. in the eastern par~ of Kentucky, wher~ the hills 0axd mountains are iotund in vLr~ually every e~un~y, there is not much flat la.~d. %Vhat cma you do prof- itably on on.half am'e? A~ ray dlstingtdshed eelte~.gue front E~entuck.v [~enator PO~] pointed out, the &verage siz~ Df ~he tobacco ~llo~- m~,~ ;x~ o~ ~£~.£e is abou¢ three-quit. ~ei~ of ~/i ~r¢, a.xld ~ ~'e mueb 5Z 00137

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S 1:3";84 " " CONGRESSIONAL RECORD -- SENA.TE OctoSer 22. 198J !!shed m ~he other body. Our actiol-~ ~x~ and r.o~ iL is ~ime for the eflect what [~ does i~ ~o pena!L~e ~l~e That ~ ~. nuclei! ~ wh~ ~ob~C~o fa~inK~n~u~ydepend~iL i~gi~ia~lon is ~c!uded h~ ~ budga~ deii- ~i~ ~LL~sioI~4 ~lII. ~r~ ~X~ some o~her kssues ~volved ~h&t should b~ addresse{~ here. ~TOklp~ t~d the t~bacco m~u~&~b~et~ that L~ ~e ba~ts for the Tobaec~ I~c~ gram Impro~-emen~ Ac~ of I~85 is an long anck dt(~i~l~ neg(~on leot t{~ ~l~i~ &~xeem~n~ ~nd ~LI ~f the l~**~s ~he~'eLtI are critfcal to t~¢ ~ho1~o I~ one sh~gl~ l~al't of this &~eeme~ ks changed ~b.s~&ntfall~, ~hen the p~o~- L.~[ i~- cite o~e- ~x~ic~]pl~. ]~ll-. ~/-e~- dent, o~ ~h~t I m~mu A l-cen~ ~- crease in the c~g~ ~x tz-a~sI~.le~ re~e m~r~ttfactu~s. ~c~ wh~ ~i~? sales ~olnme co~t~ bi]1~(ins o~ doIia~ in means th~ m~ I~e~tuc~ f au'~JF f~m~ ei~ ~l} be- !otced ~o ~ca.nt~.t!y reCILk~. ~1~ir ~.~r~e o~ tobB.coc~ at I~ tim_~ whe~1 ti~efr back.~ ~re a~re~d~ l~e~cl le~s t(~t~cc~D. As ~ res~]~ of ~.he the i~,clinat io n. to spend ~he bii~io~s o~ dO!la:~ which ~i]l be req~i.'e~ t~ ~r- ch~se ~. billio~ I~ounds of ~d~]~S tO- tO ~a~'~q~t e i~ t~ invent o~" bt~'out. which is an in~eg~ par~ of the a~Te~ ment. I submit to my coIIea~e~ ~h&~ b1~ ~nd the t~x~ayez~ will be left h~Idin~ the bag for $4~ bl] llo~ woI~ o~ tobacco. be made adch-es~m~ th~ l~Fk~ is~u~ I ~co~m~e ~ba~ the heatzl~ ~oin~ to gn awa }'~ 18u~ I think I I~ ~k'c} to eotl~a~e~_ peOl~le a~e gOL~@~ ~O ~UZO~ even L( t~e~ ~ ~ • viab}e t~bacc~ p~o~tam. So the real issue L~ no~ ~he~ze~" peopI~ Will ~ont~ to SIil~ ke S~at~ or by h~nd~eds o£ ~ho~sand~ o~ arc~Ii ~amfly ~azme~. As ~ matt~ ol econom~ and s~eial policy. I pre~e~ to thL~ t~e latter is deniable. In eo~c!usio~m Mx. l~es~d~r I ~uld ~e m~' collea~ue~ ~o ~jec*. any ~t- Mx. President. i~ Closing. I s~hou!d like to make one othel cbseF:~i~, i am e~rdiden~ ~13~ ~here ~7~ many here toda~ who s~pl}or% ~he C~ee a~nendme.~¢ a~d be~ev~ ~h~ a~ L~4 the sta~Lstics, yo~ tmm~diat~ c-oi~c!~- sio~ k~ th&t i~ mi~h~ ~erBely aYSec~ has levele~ ou~ I venture tc~ ~i~ t~at what ~ re~lly h~p~.e~ L~ ~ ~£~o rett~ ~.~ |~ mc~e'~sed, as tJ~e dJ~zkno ~L~ed ~en~a~ from l~de I~le.~d would stm~iy fled ~ Way to ob L~in ~.~e tob~c-~o rn~_-i~ ~e~p]~'. That is. i~or~ additional tob~c'¢0, a~ the "~cJ~- ~is1~d ~a~a~ o~ the A~c'o$.~o.Te Commi~.~ t~e ~e~a~or f~r~i~ .~*orT2~ Carolina. k~low$ in order to ~io the~ ~'~fi~ recap.in; a~d ~he I~_~ l~er Ca~nIir~ ~e~n~cl~y. vizglzda. ~Eer_nes- see. E~-~ C.~rtfl.in~ and o~her Sta~e~ To ~:ive ~ ~ew s~.tL~tie~ along th&~ line. dI~z~.n.~ tJce pe~od o~ t.~ 8-cen.~ o°5~4 mJ~ior~ un 1984. D~tng ~e £ame ~.e~d, ~he col!e~ ~Lbrley a~c~ ~ue-c~zed tobacco was re~ d~d by ~er SO0 rnJ]lio n p(~ ~d~ or I~-13~.-~13t CI~(%-~e L~ ~he ~.o~J~ o~ tobacco th~ ~.n individ~l¸ ~'er ¢c~Jd ~.lan~. • Eve~ v.~th this ~i~,~.~ z'~:~on ~21ue-¢urec[ tn~ea~ed by ~T~ ~i~ioz~ • I~{I ~0 mCIto~ !~otmd~, r es~e~cively. eLsewi~e~ to b~y cheape~ tob*zo~o to re~au~ their pr~fi~ mat=*'zr~* Th~ !m~r- cha~e o~ foreiR.~ toba~o ~nd Lb~ 1.~o~e Iz~ve~t ar$ ~tock~ v¢fil m~dat e ~ Lbe ev¢~ thoL~gh cig~r~tt~ ~r~dtl~io,~ not d~ol)I~ed~ ~mc~ I~ beL~.g p~u~'~ ~md • r~re ~*obaeeo being Lmpo~d. [~tlz~o~ L~ ~¢rvec~ by e'xtendin~ ~tn~ ~a.~ be~toncl th~ l~ee~t le~'eL I hope I~ ~de ISLT~ d will ~ de~eated. tempt Lo dLsm~n&le.th~ a~p~ez~ent. The P.R.~SI35~G OFEIC~. Who The p~ti~ oi the bobaeo} f,~nE1~" h~ve ~ y~elcL~ time? ct~l~l&ye~ Lmpreeede~ted ~mt~ to .~,~r. l~AC~07OOI). ~I]t. ~'e~iden~, I reac~ Lh~ I~oL~ and [~ ~ c."it~c'~I ~h&~ yield 5 m0~t}~e~ to L~e ~e~a~or L~m ti~.~ en~ir~ a~reem~ rern~irt ~ Vir~ia. Th~ Senate- Eilm~.ee Commit~e~ ~..~s I~Ir. W2~I~. :Mr. P~si~er~. I reac~ea • ve_~ re~:~bl~ comp~mi~e th~]d~ IJae di~iz~.u~hed ~en~tot I~m grower~ ~d c~mpante~ hav~ ~ea~hed ~ ~ ~r_ ~ide~r. I ~ blink thL~ t~ 0t1~h~ OLlt b}" the ~WO dis~in~dfsl'~d Se:zg.cors %rorn Kentucky, a~d falls dh'ec:l$" on I~ u~ha*~e ~.~i e'~- ¢}~aret te~. The a~luei".~ L~d~vidua2s will ~cceI~ ~h~ ~x ~d i~ will :~ot ~ffec~ ~le£r l£fes~yles wh&~<o- ever, bt1~ thL~ ~x will direc~ly l~p~ct It ~eem~ to m~ ~hLs i~s~e wa~ ca~ f~lo ly resolved i~ tha FLrmnc~ C(]romi~t~ and ~'e w() uld ba well ~dv~ed to, l~&ve it &s ~ w'~.~ decided ]~y tha~ c(~rn mi~ tee. The PP~ESIDING OP!~IC~EL ~-no yie!~s ~tme_~ t~ PACIC37CO GD. k~r. Pr~ident, let me jus~ &sk this ~ne ~esti(~n. I ~old a13-~ady. I do i~o~ kI1o~r il the Sen~.Lor from New .Te~ey i~- read'.t to s~e~k- ~iml)ly want ~0 ~ind ~u~ i~ ~I~.e ~en~tor w~.rlts ~0- g~ ~or~ Or ~fter ~he Senator ~o BE~AI2L~3£_ I ~ill gc~ .~ftcr the 1~r. I=ACKN¢OC)D. I yield 5 mL~utes t*D t~e ~iis.+~¢Ji, ~i-o~ T~ r~ ess~e. The ]PR~SI~I~TG O~-~PIC~. T~e ~e.n2.t~r fiord. Tenne~ee is reco£-/LL~eci *3~r. SASS~I~. }..'r. P~-e~ident, I ~ha-'Lk ~-. pr. e~f de:~t* ~ st ron~1~ ~]p]p o~e tlzi~, c~g~t e~. ~ my col]e&~tles have !ndi- c~ted, the aiT~end/~eZlt before ~ ~o~]d 1~ein~ o~ these ~homsa~c~ 0~ ~m~JJy f~i'~is Se eL~s to ~e loss on the ~1~i3.ot-t - ~LL~ clear to t21(}$e o~ U~ who l~P.v~ ~o- bo.cc 0 ~a~Tne~ z~ ouz home Sta~e. If% my 13om~ S~.te o~ Tezii~L~see, we have ~0~ 38,000 ~arm~ o~ ~¢hicl~ t(~ ]e~e~ usu".~IIy a~soelat~ tob&¢co with ~es ~ch a~ I~e ntllc[~y or t~e C~:oli- na~ ot Tennessee or VirBinia~ i~ is • worth notin~ th~ tobacco L~ ~'. 0 wl~ i.n 17 States. FT0~ iv[a.~s~cbu~ett~ a~d ~or~3ect icu~ ~o Wisc ortsLn ancI Indlar~a. ~zo~} %n31 tL~d tobaccc~ ~a~T~ers. T~ b~cco b~Li1e~e~ I~I~os~ L~ C o~nt~y_ The £mportance o~ tob~cc~ ~ ou~ ~tiorx'~ fatmer~ L~ ~ee~ L~ the fact ~ha~ ~obaeco ts ~sua~ly ~he Si.x~ LT~- e~ ~ CZ~p L~I tSme~ca. I~ 1983, ~o- ba~co farm ~ale~ totaleCi $~.4 bilI~n~ 4.~ perc~ o£ 311 arol~ ~ale~. for that ye~ and 2.~ p~cent of the va.L~ ~r ~Ii ~m e~mmoditie~. Tobacco ~.nc[ to- bacec, produet~ addeck $~.~ bi111o~ to the ."T~.tiol).'$ ~i-0~ i1~on~.1 1~rocti~ fn 19T9. ~Yoe Depo.~T~ue~u~ of A~i~m~It-&re ~po~t.~ t1~t. bo~h dlreeilv a~nd i~d{- tecta, t.oh~cco ~.~r~ete.ce~ ~ ~iEon j~bs. $30 b&]].i0r~ i~ w~e~ a.~c~ ~arni~.~s ~.nd ~i~ bLlIion in. ~apit s2. i~,ve~t m e~ per },ear. IS ~.~ ~o~ a.~ thov~h th~ tobacco farmer ~ ~h~ ~h(~ se~} t~o 5 2001373

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S 1o~8@ CONGRESSIONAL RECORD--SENATE October22, 2~35 The poorer the ~'orhan, tha less Hkely effect, I th~r.k t~t L~ what this rex- co cornp~nie~ ha~ Ie~d to the deve!oF- sheiato~ok~ ~Lion~tempti~g~odo.~dindoL~g i~e~t of t~e ~'~obgce~* ~g~ In~- In ~y, ~. President, there are m~r~- re~o~ wl~y ~$ cig~e~te ta-"a ~hould be :~e~L Whll~ m~.ny Gtah~- ~,~-<~ hal~e been incr~ed L~. recent year~, the ci,~.rette t~x ~ de- elmed s~'n~ic~altly £a real cerm~ over ~he decade~ Tile eo~ of smok~n~--~ terras of do~$ and i~es--is L~ge. ~n~d ra~ing the tax ~ll reduce ~e u~age, p~rzlcu~zly among young ~eo~le. S~, ~r. I~es~den~ I ur~ ~ha~ the ~e~t~" SL~I~Oi'~ thL~ 8~lelz~1~t. no~ orAy for ~he ~eason~ ~hat I hm'e of- fered-not only bemuse i~ will reduce health e~re costs ~.nd reduce ~he ~axes th~ ~21 h~.ve to be p~id in fu~dre year~ to pay for the he~kh care cc~ ~ssoemte6 ~th ~mo~an~. not only b~- cause k~d~ ~ tb~s eeuntrlr ~ou1~ be ~pare~ the he~l~h t~Ye~.t ~hzt cig~- 7g to 80 me-*'a~nt of people sa~Do~ this k~nd of a ~ax ineresse, no~ orgy ~e- so, I would ~oln£ our that i~ i~ ~ re~oTes- sire ta.'u I£ b/is hardes~ on £ho~ }e~st able to pay. Pr~)bably ~okh1~, ~;lle ~h- er one !ike$ it or not. i~ ~he iu~r~ of gh~ ~orking men ~md workm~ woman Lu ~h~ ~ountrF, and ~hose ~ ~he lower end o~ the econcn~ S~ale. s~ is tmle ~i~h ~n~ re@Tessive tax bear the Erect. burden of it• "~.~ ~ea!t hy, ~I~ rl¢/l. ~ho~e who ~re SUbstmn~i~/]y well of~, pay ~. bit more for • D~e~g~ Of e/g~e~tes, o~ eOUI"S¢. bu~ they will no~ have grea~ coneem absu~ It. I tblnk ~naliv I woul~ note..~. PreSident, ~ha~ ~his Dar~ieu~ gac "kage is ~. c~" ~L~ly craf£ed on~ of compro- mise, ~rying to deal wi~h this issue of- ~x~ior~ as weL~ s.s ~o de'a/ wi~h the general Lssu~ of the tobacco pr o~l-am_ I think ig is in the best interest of sll jecte~ I appreciate the o~portun~F U) c~use i~ ~ould held reduce ~he dell- s~esk~oiL ci~--but because. Air• ]:)re~/dent, sooner ~r. lC~esident, since 1982 when th~ orla~ertheE~en~tev~o~reco~,I cigarette ~xcise tax w~ ine~ed bel~'e. ~uDpor~ng this ~nd of ~n~nd- f~om 8 ¢~nta to !~ ce~. consumers of men~. An~ f~on~ mF pe~ec~, ~he ~h~cco prod~c~ h~ve borne an ~nordi-" sooner ~hebet~en n,~e ~h~re of ~he ~xe~ that ~e L~- M~ PACI~VOOD addressed zhe posed st ~ ]ev~ of gove~en~. ~t year ~moxer~ D~d Federal, S~e, and The PRESIDIN~ OF~C~. The M~ PAC~WOOD'. I ~eld to the M~ FO~D. M2. President I w~u/cl lik~ to have i minute ~o rebu~ ~e Sen.¸ a~or from New Jersey. lTia~ is all i~- wou/d tak~ Mr. E-4~T add~e~ed zhe C 7~a h'. Th~ PP.ESID~G OFFIC~ (Mr. WI~ON}. "~h~ 3enamor from North Mm~ EA~'I~. Mr*. ~eslde~t. l shS2d be br~el~ ~nd probabl~ we ~'e overlndU~g- ing the sub~ec~ rantO/y. I will n~ ~Z- ~empt ~o enlarge on ~n~ ~zr'd~4~- mensiot* of i~. Aside fro~ the goo~ points ~ha~ h~ve ~d~ad y b~ m~de h)" my diSt/~d collea~'ae abou~ ~he cig~r~t z- ~aac% t e osccc-vroduc~ ~tat e~ one thin~ I f/n(~ ~rou~mm i~ th/~ ei~o~ fs yat~ ~ ~ to m~/~, it c~c~r~ to me. aocompL~h ~rahibitio~. by tax~dan. ~n~ i ~h£n~ the ~enazor from Ne~ Je-)~ey ~ conceded that the ~he~ L~ ~ ~h~ le~ people cc~surn~.. L query wh~ther th~. is n@t ~n a~tL~e o~ the r~enu~iag system whe~ lees/ governmen~ more than $9 b!l* llon h% Zsx rever~e. ThiS is ~le~.rIy ~*hree %Jmes ~,he ~tn.ou/%f_ ottr smaPl. s~rugglhng ~ob~eeo farmers made /or the£z 188~ cr o [~- The increased exc~se tax h~ hut8 moa~. tl~e ~eopl~ wh~ ~e less~ ~ble to I~my~ R~ently, l~of. Glen Ch~Dpelk of Eas~ Cazoktn~. Unlver~i~y relesaed m Study on ~he impac~ of ~ob~ceo t~xes~ part of Which I ~uot e: sources o~ add/~ionsl r ~eD/~ e~, thelz km DOSI~ ~/01] ~ not ~i~ou). ~i~¢ ~/rpr/sin~ ~ ~2~tive t0rc co~mer d~zsions, z~nc} reduc~ o%-et~ ecn~n~ We~er~ PutTth¢iTaore, to~ ~ ~ fr~tahle borer t~au~e lh~ d~ the *.~ ~o~ ~'~cts ~nd~ b~'~use the ~m~a~c~ ~ am) t~x~ s/~ ~s~ CO~D%ZS~ ~ Laxg~r ;)0rf~0~ el D~ and, n~- n~mty centimes' budget s. ~U~ n~ ~ fh".0, mysell in a ~tr~n~ pr ~me~a ~ ~l (~der tc) ~ the TO- b~c~ Prog~.m ~hm~ L~ so ~nt~d~ ~@ the ~-~ o~o~e2, Of ~J~ St ~.~es. i m~sz ~uppo~ the re%me excise tax ~h~ h~ dsmage~ no~ on/y the economic w~e of 5~) provement AC~ of 1985. Tlus legusia* dora L~ c:i~l~'~/ to the long-I~,'m, we!l- bein@ of th~ irn~or)~t part of the American ~Ticuisura indus:ry, and tha~ ~S W~Y ig should, be ~¢luded tn ~he budget r ec o nc'2J.~.ti0n. i~r. l~esidenL once a g'~/.~. our t obac- than the~ fair ~hare of cuts and .'~- ductions SO t~ t~y ca~ Drese~'~ the~ }ix~Ith~d~ WIthsut L~S le~-~L~ tlon. I fesx. tobacco farmers emsHy eosld lose th~ li':elihood. I strongly urge ml" eollea gue~ to join with me L~ su~or~ing this e.'/tic~], leg%SlS31on. The PF~ZS~DLNG OFFICER. ~.Vho yields tLme.~ 3~'~ C I#_~.m ~ addressed the Chair. The P!%F.~.IDI~G O.~2ICE~. Tke Sen~t or f2am ~hed~Is]m~d. l%.t.-_ C~L+~E. 1~r. President. I ¢on- Wn~ulate ~he di~[n~uished ~ena~or ~r~t New Je.~_ey for hi% remarks_ I ~hought. they W~re r~ght, o~ tar~'st. %qhat Lhi~ amendmen~ is all about, ~r. i°z~s~de~it. ~ ~l~mm-~on. is th~ Aa has been pointed ont e~.r1~er. ~. lot ha~ been $~/d o~ t-hls amand~en~. I do wa.n~ to thamk those. ~'hs have sl~ken favor o~[ it. It. seer, stC Lne "xe a2e" ~E ki-~g, tw~ points here. ~re rLu-~in~ these h01Tet!d0uS dificit$ evez~I ye~.r, everT ~ddi~iOtlal eenl. Cve~ dollar, every millisn or hiE[on dcllat~ we can achieve i$ good for.the ~econd. this is m heahh measure~ 2. vo~e in f~.vor o~ ~hi$ ~nendment is a vote ~o }m~rove ~he he~d~I~ of our Nat~cn. There ts a dlree~ corr~l;~tion ~e~ee~ )~he size Of the ta~; :~l~d ~he o~o~r~ of smoking, s.~d partlc~I~r}~ in com~ee~Jo rt wiZh y~un~ people. The ~un~ ]~eo]~e ~e i~ ~he W:O~ th3~. do no~ ka~'e e~oU~h f[nan~a~ ~lasti~ty ~o theF csn ~nti~ue to) bu+y ~'e~tes ~ I ~he m~e~sed Drlce. As ha~ b~en Doln~ed~ c~r. When we wen~ f%om ~ to 16 cents. ~here ~-a.~ ~ fai~'IF dramagi¢ dem~ase "in ~he number Of young ~op~e Who Were sm~o]r2n ~. who to~ t~ smoKin~ or ~on- bnued smog. tee. Ther~ h~ ~. vote of 10 ~ ~ ~n in- TIUS ts ~ t0t~k of 24~ cent. I ~h~nk an ybod~ ~ho h~s ever had m you simply t2~x ~me~hing out of exist- mizen Americ:u~ who choose t~ rel~ive, ~ ftlend, or ~r~ acquafntance erm-e. I~ ~e w~ to g~ to prob/~d~ox*. ~oKe~ bu~ ~o ~ eeonomJ~ ~e/fs2E- or h~ seer) ~.~y~ody WhO s~ffer~ froiA perhaps we m/gi%t ~r~ a eo~itution~/ of nearly 700.000 families whe ~ d~- emD~ysen1~ which ~o me ~ one of the ~mendment sa we did wi~ drinking rt~ly en~e~ tn ~rodueing tobacm)~ rnos~z~ghtenin~aHment~.I h~ve se~n, some deles o.go. and Io}iow tha~ the ~75,000 ~"ail~ larrn~ tha~ deDen~ or who ~ ~een I~v~c~ one& s~ff~l~ rc~e. ~). i ~ troubled wher~ }~ L~ art tobs~co for tbelr i~elihoo4s, an~f f~o~t c~'~c~rof the lu~l~s, cancer of the admitted by ~hose ~u~por~n~ t/le ~r ~he ~,00~. wcrke~ who earn ~heir chest, the hear~ ailments that ~e 9x- ~b~h~D~.~Do~eofiL~(~btm~mbou~ livingm~nuf~eturin~tob~'co_ so~4ated~th~ok~ wiHres/~zat.ha~ tha pro~ubi~ior* oi tcb~cc~ ~mo~ng. I In we~=~ing a~ oi these factor~ I ~e ought ~o see~. tr~ ~d rapI~mz ~m W0~d prefe~ g':eater in~ellec~u~/ hen- ~ ~ s~t'~ ~he T~b~..~co k~'~.~:am ~rnendme~t~ esty ~ v#hieh we simply set out by i~ the mo~. im~or~sn~ ccnsidera~n. I~ i~ not ~c[zr~ to s~Ive ~he problem some s~hem~, legis]~.~Te Or coD~$it~- Th~ l~=~e ¢onts/n~d it* ~h!s b~Idget, eom~) et~ly bu~ i~ ~d hel;) I I/~ 5~.. tion~l ~m~ndmemL an~ Drob/hi~ tl%e reconciliation pham is ~he resul~ Of a c~lle~gu~tm s~t)Dorz th~s ~ma~idment• smoking of ~obacco. I d~ n~t suppose ye~'s won~. kf~ny long mee~s be- ~r. PAC~TW-OOIX i ~d i rnlnu~e an.vone v~uld s~gporT. ~h~ But~ ~m tv,'een~rowe~i~.~(~ tob-~ totheSenazorfr~K~n~tnc~F" 5ZZ001375

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October 22, 1,$$d CONGI~ESSIONAL RECORD -- SENATE S 137S7 The ~SIDL~G OP~IC~R. The Jng amendment, because It is not ger- The PRESIDI2TG O~x~EI. CER, The ,~.e~ator from Kel}r.ueky, -'vlr. FORD. Mr. President, as Ba~TiiJ~ said. there ~ s. sucker baits every I!~iIlt/t~, He forgot to tell us ~bout the people who were looking for him. The t ob~¢co companies a~ not going to reduce their ~bi/]ty to earn i~¢ome, What. they w111 d0 is buy cheaper to- bacco, foreign tobacco, imported to- bacco. This tax is a question of saying to so- ciety th~.t we are going to pu~ you in the social beh~.vlor are~. we v;an~ you in by t~xing you trod by pa.~mg a l~w here In the great deliber~tive body of the U.S. Senate. Tha~ in my o~tnion, is wrong. Thr~ is a/l this tax is abouL trying to force smokers Jn~o a particu- l~$r See]ill environ~tent, or sacra[ he-hay- for by this ~ay, It is wl-ong. They will fred a wa7 to get around it. They Wdl bring ¢2a im- p(~rts from i~oreigoI~ coui2£ri~$ t~at v.q}I h~ve pesticides and chemicals that. we do riot W~Lrlr~ ~ ~grlcoLlrage ]T~y col* leagues to vote agains~ this ~Lmend. The P~ESIDING OE~[CER. Who yields %ime? tvlr. PACKWOOD. How much time remains. Mr. President? The PRESIDING OF~:qCER. The ~ena~or from Oregon ha~ iI too-rotes ~nd I0 seconds. The Seas:or from ~hede Island ha~ 29 minutes and 45 seconds. ~Ir, Cf~LA2'EE; I suggest the absence of a quommn and ask that It be charged e ~.~ally to h~h sides. The P~ZSIDINO OEICER. With- OUt objection, it [s SO ordered. The clerk wifl call the tell. The le~/~.tive assi~tan.t proceeded ~O ~.II ~iae rO]L Mr. DO:vIENICL M/r. l~restdent, I a~k unanimous con~ent that. eke order for the quorom call be r e sore.deal. The PRESIDING OFI=XC~R. WKh- o~ ob~e~ion, it is so ordered. M~r. DO~tEhqCL Mx. President, I ask the dLst~ngUi~hed ¢tmin~a~ of the F~na~ce Committee if he will :4old bae~ the remainder of his lime, t~%r. I=AC~'AVOOD. M2. Fresident, I am happy to yield ba~k the remainder of my time to the chairman of ~he Budge~ committee. M~. DOMbqCI. Mr. President. how r~HCh ~Ji~e reIT~!n8 ]iI~der the conbl-ol el the Senator from New A~exico Stud how much under the control of the Senator from ~Rhode Island? The pRESIDI210 OFPICEI~. %'%ven~y-slx minutes, fifty-five sec~nd~ re~aL~ ~der Lhe conI2ol o~ t~l@ Seas.- tot from ~hode L~lan~: 5 minu£es under the control of the Sen~.tor Irom ."low Mexico, lit. DOMENICL I am prepared to yield back the remainder of my time if the d~stin~n~hed Sen~.r~r fr¢~m ~.h~e IM~nd is. Mr, CH:L~E~. 51r. ~residen~, I yie!d back the remmnder of my time. Mr. DOId~I~qCL Mr. i~resident. I make a ~olnt of order that ~he ~end- ger~n~ness. Mr. DO.~¢~ICL Mr. President, I woUld like to table the motlon ZO w~Ive the g~rlTlallene.~ reftuiremen~, SO would be pleased to yield back my tlme. Mr. CH~. I ask for the yea~ ~.nd nays, M2. President. The PRESIDLNG Ol;F'xc:~. Is there a ~ufficient second on the mOtOr1 to W~iVe? There ~s a sufficient second. The y~,~ ~nd nays Wel'@ ordered. Mr* DOIvL~TICL ~r. PresidenL there Is a motion-- Mr. CI~. ~. President, nexL t!:e Senator from New ~eNico i~ go iI~. g tO mOVe tO table my motioi$. Thee iS satisfactory With me. I m ~repared m yield back my time if he i~ on th~s de~at~ on gerr~l~neness. The PRESIDING OFFICEI~. I~ all time yielded back? Ms'. DOM~.NICL ,%,It. President, I Nteld back the remainder of m;' time. Mr. Clq~. I yield back the re- m~inde~ of ~y raffle, The PRESIDING ONCER* .~II time has been ~ielded b~ci~ on the nlot[on to % ~ive. Mr, DO~MENqCL I s.~k for the yeas a21d Fi~',,S on l~y 1T~o~i0n to l@.y o11 the fable tile r~o~io~ to v.'a[ve section 305(b)(2) of the Budge~ Act. The PI~ESIDINC- ON~C~R, Is there a sufficient second? There is a sufficient second, The ye~ and nay9 were ordered. ~r, C!L~EF~ Mr. President, before we go to the vote, I think if t~e ChMr could p~i~f. Ol/t Wtlat Vote does what. on this motion to ruble. The motion to waive the Budget Act is • vote no on the motion to table. ~m I correct? The P~ESlDr~ OFFICEI~.. The pending question t~ the motion of the Senator from New Mexico to table the motion Of ~h.e Sem%tor from Rhode Island to waive tile Budget Act re- quirement, Mr. CHA/~CE. So those in facor Of +,he increm:e in the cigarette tax will vote no on the motion to table* The PRESIDING OFPICER. The Chair is exceeding i)~ prerogative in respor~dlng to the question of the Sen- ator from Nhode ~lzma. mane to the reecneiilz:ion bill, as pr0- qllestien is on ~greeing to Lhe moLio~ :idcd in section 305(b)(21 ef ~he Con- of ~P.e U2enator **ram New .%~exieo r-o ~'e~si~n~l ~udget Act of 1984, is out of lable the mo~lon of the Senator frc:n order. I%hode Island. The y~ znd nays have ~!r. CEL~ .'dJ. Preside~L pLUSU- been ordered. The c£erk ~L1 call tP.e ~.n~ to section 904thl of the ~udget roll A~t, I move t~ w~iv¢ the germaneneta The le~slative clerk called the r0I!. requirement contained l~t Section ~r. ~I~IPSO.~q. I a2"a%oul!ee th~.t th~ 305(b) of that a~2t for the eonslder- Senator fr~ra ~%Ii~.~uri [.NIL D~.~- ation of mF pending amendment. ~] and ~he ~enator from M~r~'. The PRESIDING O~CEI~. Under land [tIr..N~a~H~$] are nece~ar~y the Budge~ Ac&, there is i hour ef absent. debate every divided on the motion. Me. CRA.X/STON. I am~0u~e that Mr. DOM~ICL ~Ir. l=Tesident., if the Senator from MJssauri [Mr. gaOLS- the Senator is prelim-red to ylaid back hL~ time, I am p~epazed to yi.ld~ bach ~0N] and the Senator from I~awail • [Mr. l.~ouvE] are necessan!y absent. i~/ne, ~,ir. C~A~E. I would llke to have a The P~.ESIDING OF~P!C~, Are roEcall vote on my motion to waive there any other Senators in the cham- ber d~iring to vote? The iesuI~ wa.~ ~noumced--ye~ 66, nays 30, a~ loll~w~: [Rollc~l Vote NO. 240 Leg.] ~n.AS--6S Aba.*¢ G~re MClCh~." Andre~ Or ~.~r~ M~tze~aum .~roa~ Gra~le~ MurK~w~i Biden Har~/n Nick~ Boron 1~ar~ Nu~m Burape~ ~s.v,,xm~ packwoed B~d He~hl Pre~!er Cn~les Hefi:n Pryot CCC*~a Hem~ Quayle D'~az~ ~leEin~ RucLn:~.n De.;on Joh:~n S~c p~on Dole K~rr7 ~ma~ D~rnemct I~x~It Thunr.oa~ EXert Ma~t [~y War~er ~,~r~ McCIUre W~i~en Gv,~{er MCCO~CU Zor W~k~ NAYS30 B~n,~e~ Go,to. pert Bm~m~ ~awh prox~i:i- i~a~iiwi~z p~a~ f~e!d ~ec~e~e~ler Br~,.d~eF K~nned~ Roth B~Ie~C~ I~ule~be~ Sarbanes Ch~ce Loony S~acm CohcI~ Le~q ~t~c~er E~ar~ Lug~ . SI~!ord O~-n MR¢~ell Wc~ker NCYr %r0TL'~G--~ Inaave 51azhi~ So the rao~ion to lay on the table Wa~ agreed to. _%It. PACII%VOOD. Mr. President, I !I~ove 50 ~o~ider tile vote by w~ie~ ~.he IZlOtion [O ]~y on the t~bIe %%-o~ agreed Io. .~Ir, DOMENICI. Mr. President I move to lay that motion on the table. The iIio~foll tO l~y all the ttlhle wg~ ~greed to, The PRESIDING OFFICE*R,. The Chair will now rute on ~he point Of ordeF. The aI~e~d*~, eat of the Senator from Rhode I~iand intteduces a n,ew sHb!~ et Y~1~t I eF not c'drre!![ly ~ nt ~..ip. ~l in the bill a~Id for thaz reo2or~ i~ is not germ~.ne~ The point of aider is t~ell taken• The amendment falls. The Senator from New Mexicm Mr. DOMENICL hlr, President. Sen- Mr. DO/vIE~NICL l~eguiar order, .%~r. ator~ hzVe naked wha~ we intend to do President. ,".ext. I understand the disling~h÷d 5 200137fi

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s 137s8 ' CONGRESSIONAL RECORD -- SENATE October ~2, 1985 leader, we wUl try to accoffL~odate that. l can a~z~ur e hLm tonight we have the ~Atatlon of sever'a[ other func- tior~ and V, qll l]ot Likely press for fur- ther roIlcall votes this evening and I will get back to the dlsgLng~alshed Democratic leader and see ~i we c,%nn o~ a~C0l'lil~ 0d at e hiI~a. ~,~r.. BYRD. I thank the distin- guished majority whip. ~. MITCHELL Mr. President, v#ll the Senator yleld? M2. DOMENICL I am ple~ed to yield. ~v. MITGIaJ~.LL. Did I unde~tand the assistant leader just to ~tate that there would not be a vote? It is my in- tention to proceed Wi~h my amend- k~en$ ~ We ¢ilsc~sed ~IId t,o h~ve vote on it, Mr. DOME~qCI. I did not under- staxXd ~he dl~tlngumhed majority whip to say there would be no further votes tlds evening. IZ%'. SII~S ON. D~d I not s~y that? Mr. DOhLENICL It is our intention to try to dispose of the Senator's amendment tonight: I cannot say whether tha~ w]U require one vote or ~wo, or whatever it vAll be, but that is our Intentlom ~¢Lr, M~TCIJ2~LI~ I thank the Sena- tor. I wanted to make sure. Mr. DOMENICI. While there ~Je Senators l~resen~ on the floor, might I J~t make thi~ armouncement2 We now know ~f three amendments tlmt Sena- tors l~ave told us they have. We are going to try to rotate back and forth between ~he two sides a~ we have in the ~g, It Senato.~ have amendmen~ that they are aware of--there are al£o seri- ot'~ germaneness issues on a ~ill liRe t 'b2s~I ~uld be plowed ~o ~tart making a llst and do my best to accom- modate Senators, but at this moment only know of three. L[ Senators could start get,Ins ~hem here we might be abl~ ~;0 ~o~odate them even Rs to time. Wi~ti ~ImL I am prepared to yield the floor if the ~enator from Maine is prepared to offer hL~ amendment. 1M2. ~41ITC~'~T,T, I than~ the Sena- tor, ~MILN~M~ NO. 8~0 ll~u~u~e: To delay medicar~ coverage of current St&to an~i local employees, an6 to fIl~Tea~e the cig~2e~ t~x by 4 ~IIL~ for 3 yea~s.l Senator from Memo. Senztor ~I~CH- • ELL. h~s all ~mendmen~ Lnvoh'in~ c~g2.. retie taxes and ~m.other subjec~ all in one ~aendmenL It will be our inten- tion ~o take that up at.this point. I Understand the Senazor will be willing to take los3 than a full hour. I2. d:at correct? Mr. MtTCH77,L The Senator is eoc- _ r~t. Mr. D OIVfENI CI. We l~rObahly WOU/d be W~llll!g to eolxie to a t i2Ile agreement on that. The distinguished majority Ieader Lndicated that after the vote on that amenchl~ent, whatever th~ vote. we Would not have any further votes ~his evening. ~o it x%'ouid be our intention to pro- ceed ~ith the Mitchell ~ale~dmei%~ &t chls time. Mr. BYI~D. ~Ir, Presklent. v.'i]l the distinguL~hed ~en~tor who is chairman of the comma/U, ee yield to me for an. other question? s',ir. DOMENICI. Indeed I 5'ie!d. Mr. BYRIg. :V£r. PresidenL Lg the dis- tingalished msmager of the resolutiola in a position to tell the Senate at thk~ ~iiT.e when w~ ~ll beg4J1 our study on the matter tomorrow? Mr. DOMENICL I ~an sorry, I say to the distingUiShed minority leader. Someone was hsndling me e. note about the pending amendment and I did not hear the e~tire question. Would he mind repea~.g it. please? Mr. BYI~D. Ye~. I shnDly asked when the Set%ate would be expected to re~ume consideration of the reconcl/i~- t~Ol] rll~ Rsur e t orft o r/-ow, Mr. DOI~ENICI. I have not ssked the d~tingul~lled malority leader. Per- haps the majority whip knows. I think we have an intervening appropriation bill in the morning. But I am unin- formed beyond that. Mr. SIIMPSON. Mr. President. en behsM 0£ the leader.¸ ~th whom I have no~ conversed [ii recellt mo meilt~. I v¢oU/d ~a~ l~ is the inrmnt ~o go for- wartl 3.~ ~n early hour ~tld to proceed this week at 8 area. or 8:30 ~m. w~th our Senate opening and continue to pr~e~$ this me~stl2e ail~t ~21other ,%ID- propi~tlon i~!ea~tlre. I caD~ot b~ ~t~ore ~peci/'~c other thllJ1 to ~ay that there will be rellcall vote& likeIy in the morning hours ~d con- tinual opening of ~he Senate at 8 atom or 8;30 am. in as1 elfort. ~0 process th~ busine&s at hand. Sdd-. ~CHFLL M.r. President, I .~r. BX'~D. I~. President, I Would send an amen4maent to the desk and hope that the Sen~.te would no~ return ask for ira immed~at e eo m~iderz~Io~x The I~RESIDING OFFICER. The tanend~n en~ ~ be stated. The ~istant legislative elerR reRd as followS:. The Senator from Maine ~tr. Mr~zl SIt,ON pr~posea an tmaend/nen~ nu~m~l~d 840. ~k unaniraou~ cor~ent, that, r eadLng of the araendment be di~permed wltiL The PI~E~IDINCr OFFICER. With* out objection, i~ is so ordered, The anaen6ment ~ as follows: to the reconefllation measure so e~rly tomorrow, may I suggest to the dlstin- g~ished majority wlalp, The a~end- ~uICe i~ rlO$ ~00 gO~d SO e~x]y 8/Id yet the time wmfld run whether or not the art endaiace is good- I would hope that we would not resume consideration of the reconcilia- tion measure before ii s-re. ff ~he dis- tingn~mhed mg~]ori~y whi~ lknd the dis- fine--dished majotigy leader wou!d kindly agree, Mr. SLMPSON. Mr. President, I say to the distin~ished Democratic Begir~nkng on page 421. litae 8, stroke Out through ~age 422. hne 21. and in~gr t in lieu thereo{ ~he [ollowing: al~e~dsn~rlt$ rA~xle b~ ~tlb~tfon (~x) sh¢.]l apply to s~qce ~erf¢)~ed b~. six llldivIdu~ on or alley his ~p~l~Able ~ffe~tlve date determined under paxagr~ll h (3). (A} IN ~--The ~gt~ndment~ 122~fle ~y subsection (b) are efI~iv~ With re$1~t t9 ~m. ald~ {dLLul or~ and a~ter his a~Dl~cable graph (3). ~nd thl! mmen¢[ments mad~ by paragraph (2) of ~hat su~¢¢tion ~l~pLv to ser%.ice perfoi'T~o:l by ~1~ iI~dividtlsl 012 or after his appHcabIe effective date. l~r Dllr~$es of eSt~b!L~hh2g en%itler~en~ ~0 hospital incur ance bone flL~ under par~ A of ti~!e ~--~qII of the Social ~eeurit y .a2ct pur~a- ant to the mmen~ent~ mad~ by subsection (b) or the glr~vi~ioim of ~t21o~tiofl (d), On the b~i~ of medicare quaJafied ~t~te ~nd ioea~ @Iaplo:*T~er~t, r~o indawldu~A may be con- sidered t~ be trader ~ d~bllit7 for a~y perfod before bA~ ~ppiie able effective date. (3) AI'I'LICA~nI~ ~F~gS"Xa~ ~A~--An Indl- ~ndua]'s aplJlicabIe effective d~te is~ (A) Cotober 1, I98~, in the ~ of an L~di- ~iclu~l Who L~ not an employee of z ~tale or politie~l ~ubdivi~ion (or ha.strumentallty which is Wh01B' Owned thereby) on Septem. bet 30. 1986: anti (B) October ~, 1987, in the ca~e of an indi- vidl2 ~] who L~ SUCh a~a eL2. ployee on Septerla- ~er 20. 19B~i. (1} IN G~WmL~L- FOr purp~$e~ of zectiot~ 226. 2262~ 0rod 1811 of the ~o¢i~ Security ACL in the c~e of an~ individual who-- (AI perforn~ ~'ice dtLr lng tb~ C~ob~r in wP~ch h;~ ~l~[i~ble effeetivs da~e occ~ o which co~titute~ naedleare qual~ied ~tate and iocal g0vernl~ntal ~mp]oyment (~ de- flzled ha se~tioEt 210tp)(1) of sl~eh Ac~); al~d (B) ~erforraed se~wlee price t~ his applies- hle effective da~e, whirl3 ~/otdd ~P~II[IZa 12~edleal-~ ttua][ffed ~tfft~e slid logal goverT~. Inent-~l employment if performed ~!t~r bL~ ~Dll~ble eHe¢~il'e date. * ~uch [nd2vid u al'~ Stat~ and local gover~men- t2A empl~ymenz perffonmed ~for¢ h~ aDp~l cable ef fe~:tiv~ date shall l~e e~lx~idel'~d to I~e "e~nplo~ent" (~ defined lot pu~t~es o~* tltle 12 of such Act), but only for th~ pt~. pose of Drovidfng the hadi~dual (or another p~i~oil) ~with eaxtitlem~sl~ Io hO~Dit~l ha~L~- a~ce beneli~ reader p~.r~ A of title XVXII of Z4¢h ALL On page 372, ~tnke out Iin~ S through 10 told mserg in lieu thereof the following: Is) R~'~ OF TaX*~ub~eetion (b) of sec. tJon 57111 of the Internal ReYenue Code of 1954 ( reL~tAng to rate Of t~.x ~ cigazett ~) ill am~nded-- (1) b~, ~t41klng out ,,$8 ~er tl~tmand" in p~R (i) ~nd il~erting in lieu thereof "$1G per thousarld ($8 per thotmand sifter October 14, I988)"; Snd (2) by s~qleA~g ot~ ,,$~.80 per thousand" in ~ph (2) ~d inset ring in IleU ~her~- tlf *'~21.00 De]" ?,hoU&gffid t$1~.80 ~el- thou. sand after October 14, ~988)'*. (b) FLOOR ~TO~m~.-- (~) I~$~2ION O~ TA:a.~n Cig~r~t~ manufaeture~ m or ~mpori~ into the Ui~ted States which mee x£mo~ed before No- vember 15. 1985. and held on such date ~or ~e by a~ly per~o~t. ~her~ shall be napped weighing not roor~ ~h04a 3 pot~lar~ I~er thoU. mind* $2 per t hotmano2.

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Oetober :~2, ~.9S$ , CONGRESSIONAL RECORD--SENATE S 13~9 {B) LA~ c~'t~¢'~'~.--O~ ¢:gsrett~s, [0¢~ e~Ipl.~ses but ,~,OL~I~, delay Love]"- recen~ ~'e~IFs v:i]] ~Ul~i next y~,I- !11~o ~. ~* eighi~ r~ore lh~u 3 ~oun~ per thou~*nd, $4 Z0 ~e¢ t~o~:~nd; except th~L LI mor~ ~h~ 6!~ incil~ m len.ozh, lhey sh~ be ~m~.- able ~*, ~e ~e ~tts~bed *cot cig~2~tes ~ =-i~hinZ n~t n~ore thi~ 3 ponds ~r thou- sa~d, eot~llin~ ~ ."% ~.~he~, qr f~'~ion thereof, of the [ensth of each ~ one m~- retie, (2) L/ABI'.ZZ~£ FOR T~ ~ M~/~0 D OF pAy- any ~ax imposed by D~/a~ph I~.) ~!~!le~ shall be l!ab]e for such ~x, p0F.ed by p~g~D~ el} shall be tr~ted as n~l Re%elzue COde of 1954 ~/~d ~ be d~/e ~d ~ayable oF* :3~enaber 2, 19~5. ~ the ~amo ~a~nner ~ ~he [~ Jmpo$~'d under ~uc~ .<ection m pay~b~ ~Ith ~'~ D¢C~ ~o cl~rett ~ removed on November l~, 19~5. (3) CIGaF,~w~--For p~o~e$ of ~*~ $~b- ~ectio~, th~ teF~ "¢igar~te" ~huli hav~ the me~ing ~i~en ~.o s~¢h ~e~ by ~$~tion Ib] of s~icn 5702 of the Inter~l¸ ~e~,enue COde ol 19~-~. hn~&ed ~E p~xag'z~p h ll) sha~l ~o~ a~Dly cig~st~ ~,~ r~t~ ~toc~ held on November I~. 1989, a~ Lhe p~ace where if:tended to sold a~ ret~l. IC) E~ZVZ D~ ci~rc~e~ =emoved ~f~r October ~4. 1985. "(2) CONFOR~II~G ~ME=;DM~T,~C~iOn ICl OI sect/on 253 o[ lhe T~-~ ~ui~* ~ud Fi~ca: ~..,~ on~ibiL'~" ACL ol I$8~ is a~ended by ~trt~ing out "~*d before ~ovember 15, 198S-,. blr. DO~NICI. Mr. President. mlg!1~ I a~k ~he dLstLng'aisi~.cd Senator from Maine, is he prei~ed to shorten She I hoar ~ha~ IS a/lowed for hLni? %re are preps.red to shorten our i houz in opposition withou~ wais'ing ~ermane- II¢S$, Mr. NIITCH~7,T, I ~ prepped ~o do ~h~L Mr. DO~IENICL ~i~. President, i ~k unanimoUS cc~en~ tb.a~ there be l hour equally divided be~.ween Ihe d~- tin~ish~d Senator from ~Iaine and ~he ~eIl~.~or from ~NISW }/~exieo i~ ODDO- sition Ihereto and I do L!la~ w~;zhout w~Iving {he germa.nene.~ defenses tha~ might be applisabIe to ~he penal- The ~ESIqD11~O OI~FIrCE:~. I~r. PPzss~a). Without objection, i~ i~ SO ordered. ~Ir. DO~ICL _~r PresidenL I v ~ d_ he time in o!~p 0simian to ~he dis- tingtlished chairman of the ~-~ance Con~ni~ee ~-here jurlsdisdon of this m~.tter lies. The pRESIDrNG OF!~IC~]~. The Senator from M ~L~ e. ~. MITCIZfELL. ~Ir. President, this araendrnenz would delay for 1 year the implementation of mandatory Medi- e~.re coverage for S~te an~ local gev- Under the bill ~ reported by the Fi- nance Comm*ittee. ~l Sta£es and !oc~.l ~overnment emp]oyees ~'fil ~e manda* ori]y covered under the Medicare Pro- g~-am ~s of Sep~embe r 30, 1986. My ~n~endme~ '~'o~Id leave th~ date untouched a~ re new State and a~e for 1 year u~n~Ji Sep[embcr 30, 1987,'Ior current State gove.'~rnent and l~ai government empioyees. This delay wou]d ~ive each ol the ~ta~es a~d ~lle m~'~iclpaliises throughout the ¢OU~.'~ al3 additional year to ra~e the i~vel!ues n~ces~'y to f~12/Ic~ the e~- ployel~ ~orti0~ Of the ~,Iedic~re ia.x. I ~m d~eplF ¢o~¢er~ed ~bou~ ~he ne~a~ive impact this Drovfsi~n will h~.ve On ~t~*te gove]l]~aent$ and or* Ioc~] govevf~.ents aczoss the ~'~.tion. .~-s to ~t~te ~overi~ent eml~loyees, the most severe effec~ wLll be fe_~t in seven States which hmve Independent Sta~e reti~emen~ system~ and, ~here- ~or~, ~l~.vo oi3e or ~ t~lt~ ~ & V~ry lew o~ their ~y~l~*loye~$ Cover~ ~3~der the S~c!al ~ecur~ty Proem but ~ to mu- niciDa]iti~--and ~enatoz~ should be aware of this--this "~ill h~.ve an ad- %'a~e effect in ever'.," State in the lYnion, ~very ~ingle State. Let me deal fiz~ ~-nd briefly with St~.te gover~nent employc~. T71ere Colorado, Louisi~a, iv~aL~e. ~Ia~ao chus¢~, Nevada, and Ohio-which hav~ indeDenden~ S~ate ~tirement few o{ their erf~l~]{)yees ~@ ~over~d under Social ~ecurity, The co~ ~o Dro- ~q'd~ng l~gdic~re coverage to ~t~te em- p]oFees will be an ~ddeci burden on ~o~e ~.~s ~,t a time w~e.'3 ~hey ~nd o[her .State ffo~e..~.~.~ents ~e attemp~- inff ~o deal w~h cutbacks in Federal f undin~ in a variety of i~re gi~z~s. In my o~1 ~tzto of Maine, a l~.~al Sta~e ~th ~ p~pula~ion of ~nIy I mil- lion DeeDle. mandatory Medicare cov- e~ge for Sta~e gov~en~ employees will add, Lr~ State gcwernmemt ex- penses. $~ million a Eear. The State will be forced ~o reduce cmt{c~ on~o- il3g DrogT~rm$ or enatl~ h]~heF t~¢e~ And ~ha~ ~ll be true in each of ~he seven ~tates that I h~ve mentioned. Ohio, for ex~ple, one of the other Slates, will be forced ~o r~e $45 mil- lioD a year to ~over ~he ~e~Jc~,l'e em- ployer portion of the tax on State emo pIoyea% But while the pro~on ~J]I affect State ~over~ment and state emp]oy- ee$ in only' seven St~.tes, the D~ovision ~U have ~ ~dverse effect on mu~ici- p~it[es in every single ~tat e. The cGs~ of this for 1 Fear is $2.2 billion. ~nd so Wl~a~ we are saying ~o the municipali- ties of this country k~ ~ha~ we, the Con~t~, a~e eompellin~ them to raise their local t~-xes by $2.2 bfl~fon a year a~d ~e are ~0mpe ]2g them to do i~ irmmed!ately at the end of ~bis fiscal ~is burden, which is to pay for the employer'~ sh~re of the ~cdi~re ~x. ~ill fall upon mumcipaiitte~ in ~hi~ country a~ the ~r~e time ~h~t ~hey face the loss of $4.S billlon in ~ener~t r~iv~g. L~C~.I gov~rn~nt~ ~.czx)~s ~h]S countrF have been hit hard over the l~t 5 ye~l~ ~ • result of those Federal bud~e~ ~u~s which we all know neees~arF. Bu~ £hzt ~au~t of tidal wave and make £he job of S~a£e rand local ~. o,,,ert-~ ents extremely, dlffJ- ~Ult. if not im~ible. In essence, we at ~he Feder~/ le~'el • re tranaferrh~g th~ m0~t diiflcult f~c~l DO~CF d~cisions to tl%.o.~e a~ ~he l~ca/~ev el. We ~re cut t/~g bac1= a varl- e~y Of pr0gTg~ns, ~e are elln~i'~.~i~ revoP.ue sl%@.r~%g, ~A1d thel~, a~ the inere~.~e hl th~ cost. Of loCa/ govern- me~nL~ to the tu~,e of $~.~ billion a yes/'. The n~ ef~e¢~ on ]oc~l govetTl- ments--I ILrai£ thi~ now to local gov- e~.ents--~h~ ~ ~d~'erse e~fect in I year is $6,~ bfi/!on. Tha~ ~ ~he ~oun~ of revenue ;hat 1oo8/ g~v~rI~nen[s will IQse t~oug~ ~h~ tsrmin~,tlorl of reve- nue sh~ring, $4.S billion, p}us the new added co~s, ~mposed on them in the forra ~f the employer's portion1 of the l~ed~care tax, $2,2 billion.¸ Th.i~ is occuring a~ ~ time when the adr~inis~r~ti0n is pro1~o$inff to repeal the local ~ro~erty tax deduction and while the_ l~ederal C, oven-d*nent re- par~/3"zed over dec~ion~ as to whether {)r P~o~ ~o r~ise reventle. I~ this bill p~es as re~¢r~ed by the Fi- n~Tic~ Co~ee, al]E10Gt every t~ty S.nd ~0WD. tn A~.'neric~ ~J/ be forced to inorea.~e its proDe~y tax ~o r~ ~he ~dditional revenues zequis~d by the bill ~s a m~tt el" oft~x equity. I belieee it un/~ir t~ malldate z~ increase in the nL~es, the prol~rl,y t.%x. ~ @. m@.te_er o~[ po]/oF, it ~ incon~LstenL to.say the least, for Federal o~ficials ~o en==age Ln th~ rhetoric we hear daily in this COn- ~re$~, abou~ no~ r~isi~ F~dersl {axes while we, ~ ~he ~az~e tL~ne, take an action whl~h compels ms.nF muniei~ p ~/ities in ~emca to raise their ~axes. Ineonsistant ~ the klnde~ way to de- ~c~be ~h~ ~cz~on, M~; ~nendment will do one thtnz and one ~mpl~ thing o~i.v. It ~nll del~F for i year the nm~dator~ CO- ver~e of c~n-ent Stare and Iota/ gov- give Ssates and th(]se mll~c~aii~ies that i yesr to prepare fcr and ~o ira* plemenL t/~e tax i~cre~zes t~at, ~dl be rlec.es~amy ~t the lees/ ~e%'el to mee~ thu~ added b 'u2den. It is Lncredible t,hat $2.2 bfl/~on a year on rnumc~pallti~s in Amemc~. a~ ex~ct/y the same tL'ne that we e~l~A//1~.~e golio~[ rev~ue Shsrln~ which reduces their revenues by S4.S billion we ~.ve them no ~ime ~o plan for i]~, no tilile to ~eG~odat a ~or this added burden. And ~e 8(re them no time ~o ir, cresse £1~e taxes ~ha~ will be ii ~£~ary to h~e~ this burden, The I year delay in ~V£ed[eare cover* ~@'e for eurfeflt ~t~te and local gover~1- me.lt ~mpl0ye~ will result, as I n0~_cd ~r]I~1., [11 s. l~J~ Of ~ro~ected ~eve~'l~le of ~2.2 bilIi()n, spread over 3 Fears as the budget re¢oncdia~,ion ~i]l contem plstes. 5 200137

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~'as ~ 8 cerlts for the 32-year period from 1951 to 1983, For 32'ye~r~. th~ t~.x w~ not i~cre~ed~ It ~-~ h!ere~ed in the Tax E~ui~y and Fin~.r~¢ial P.e, s~on31bili~" A¢~ of 1982. I¢ took effect in I~8~ to go from 8 cents to 16 cents, Tha~ tm~ w~ scheduled to¸ ex~ire-- tha~ L% to return to the 8-cen~ le~'el~ ~n October ~, I~85, D~ in recent le~s. la~ion was extended on ~ iDteriL'1 basis until November 15. The provmio~l in S. 1730, a~ approved by [h~ Finance Co~ic!~, w-o~d Fepea~ t~e sl~l~e~ date thereby establishing the t~,¢ at the 16-ee~t I~%.ei On a perr~anerlt basis, a~d ~ repea~ now, Wo~]d DyO%'jde ~'0r 4-JeIlt i~cre~e if* ~he Federal e:~cL~>~ {~.x on ctgare~,!es fOP a ~-ye;ly period, fronl November 15+ 19~5, to Nove.'nbcr 15, 19S8. I~- obJ ectlve and purpose £s to raise suffici~nt revenues to offset the lOSs that ~.'o111d necur from the l-year S i.6790 " ' CONGRESSIONAL RECORD--SENATE October2~ 19S3 I hnow We are ~ll conceded ~bou~ b~tep the cigarette tax inere~L~e, to than if ~he doe~ not work at all. Now the Federal budget defle!t, and ~o I not filibuster. offer ~ par~ ~[ ~ht~ a:nendment a This i8 a diSferen~ a~ue The ssue ~eeotld l~roDosa£ which wou!d place ix% in%'olve~ whether or not the Stale em- additionM ~-ccn~ t~.x on cl~ettes, ployees should pay taxes into the thereby rais~g the clgmrette tax to 20 Medicare ~y~tem and that their em- cenI~ a ~ac~. T~a~ ~'fl/ generate ap. pJoyei'--~e Smte o~" loe~ govern- proximately $2.2 billion over the 3- ment~-should ~ay taxes inlo the Med- year period al%d offse~ ~he reve.'It!eQ leave ~ystert~ lOS~ ~ a. res&ll~ Of the l-ye~x delay iv& And I emphasize Pay taxes int(~ it mandatory Medicare coverage. Th@ rathe%" th2,n Ilshlg the word "l~Iedt- tax on cigarettes in ra'~- ame,'ldmen% ls care" because what we have discovered not ~ ~ermaaent rex. It is intended to ~s that most State and municipal era* be temporary Ior the 3-year period ployees a~e covered bF i%Iedicare. They oP2y so tha~ it will achieve the obj6~, are norma/ly the residuat beneflc]acy tire of offsetting the $2.2 billion cost of ~omeone else in ~rivs.te ~mptoy- of the l%'e~r ~eiaY in m~ndatory l~ed~ men~, and by virtue of ttla~, ~esidua/ ~car? eo%'era~, ber~e~lsi9.I ~tei*est they are covered by ~V~ have already had extortive i%~edl~re. ExPiable: SailS' works for debate oi% ~he DF0pOS~I to klcree~e tile the city O[ ~a~Igor i~. ~;er hitsbar~d. cig~-I'etle ~ax 8 cents SO I Will be very Mike, works for Interaa~ion~J Pa;~er. brief. The Senate should k~low tha~ He p~y~ Social See~rityl:axes, ~ntcrna- the Federal excise tax on ~igarett~ tional Paper ~.'¢~ ~or ~oeial Security Medicare taxes are ever ]0aid on S~lly, ever. Mike becomes s@. sally becomes 65, nnd she is covered although the t~xes W@Fe IleI'@~ ~2Ri~ ~0~" her. Conh'a~t that situation slightIy. MiMe %'orks for In~ern~H(~nal Paper in • ~laLn@, ,Sally instead of working for ~gangor, the ei~y O~ ~a.'~r. ~e~. u-~rks for L.L. Bean--24 hours a day. ~5 day~ ~ year. ~Ight? She works for L.L. ~eRn. NOW. w0rkh~g for L.L. B~an. she L~ covered by MedJc~e and she pays t~uxes. I-let ~Dloyer DRys taxes. B%It she ge~ no greater benefits thRn she gets by working for the city of Bangor and having no taxes pald ~t all. She ~e~ exactly the ~me benetil~ wheth- er abe work~ for L_L. Beam or the city of Bangor. SO the question flrst be- comes one of f~.[rne&% Sho~ ~;~ose who are ~oing to benefit frpm the Medicare ~yst~m p~.y something? de~a~" iH r~lar~datory Med~cOA'~ ~Dverag~ ~'e i~d~ o[le exception 9~ ~. ]~a~ter for current State ~nd l~.l govern, of ~ocial policy years ago. It L~ ~. good excepti0~. We sald i~ OI%e Spouse works meIl~ erRploye~s. I brge I~lemberS of the -~enate tO in the rn~rketpl~.ce fo~ mo~ey and the consider the umpact that this mand~, other spouse does not work m the tory provision v.iI1 h~.l'e oD~ $tate ~u~ marketplace for n~oney, w@rks at~ espee!s/~y loc~l gover/u-nenL~ in your hom~ the entire tlm@. zleve~ Ireeeives Sta~e~. I repeat, every sLngle SLate will any Wages--~lot fron~ the city of be adversely affected a~ to the munici. Bangor. not from L.L. Beam--that llon- ~galities in that State and will be inco~ne-eo.rn~ng spout@ is still eo~ered forced to fncre~e ttleir '.axes by $~--~ by bfedic~re. Tha~ is ~ matter Of ~ocla/ biLE0n a year to meat. th~ cost, at ex* policy. We thought ~hat was good aetty the same time that they will be policy. But we did say. for those who losing the $4~6 bilHon f:om revenue worked Ln the marketplace, even tttou~l~ they are ~o~n@ ~o ~et the sa2ne bit. President, I urge the iMembe~ benefit~ tha~ the spouse who never of the Sen~.~e to su;~port this a~nend- worl~ in the ms.rketDlaee gets. they meat. are going to pay something into ~ledi- The PRESIDING OFFICE2~. %%9~0 care. Thi~ is because we real~ze~ [u)ly yleld~ time? ~ha~. if yo~ we:re goin~ ~o ex%end bfedi- Mr, PAcK%rOOD. Mr.. President. care benefi~ to sp0t~se~ who don% the arguments against thiS ~mend- earn wages, y~u were going to h~ve to ~e3%! 0by~oDs]~ are Dot those t}~.at, ~it S0~e Wflg~-esr~J~'spouseS' ~2~olley %~,,er~ dsed D.~Di~S~ the ~rte~ler~ o[+ i/fro ~e syster~ tO ~t greg.~r ex~eD$. fered by the Senator f~om Rhode That is ~ soci~l triP.for policy. Senator from 3~aine. Isled. There an ag~"eement'had been Le~ me review this. Mike works, his ~,~r. :~qTC~ELL. I ~ield 5 minates to ins.de between I.he Affrieult~/re Com~ wi£e ~loes not- work in the marketpl~e the Sen~.tor from nHnois. mi~tee or the Finance Committee, or a~ all, ~nd she is cov~cd. She is coy- :~L~. 81MON. Mr. President, and mY ~.t least ~. m~,jonty of the membe~ of ered even though she never pays any colle~g'tles, I ~rn ple~s.e(~ to rise in sup- both. to s~.ue the (Dover1~x/!e~at money taxes, iViike wor}{s. ~a[ly ~orks for L.L. por~ o~ the arn~lldr~.e~ Of the aerator i/I ~e ~OD~CO prograr~ ill ex~h~llg~ BeBll. L.L. ~e~n. D~.:¢S t~x~s, ever~ from ~/~alne. ~.~[t/¢h of ~.-ha~ the disCus- for Sen~tora. who other'~e would fill though Sally has no more benefRs g,/lshed chairman of the Finance Corn- " i~ add~S0~* We ciirr~r~tly say, OS a raazter of sncia2 policy. ~aHy. you and L.I~ BeRn are goLng to ~y t~xes into the fund unless you work for the city of Bangor or ~or the S~te of ~L~ine. T~D yr)I~ are ~a~ ~oi~g ~o pay an~: t ~-~ es L'Ito the f D/%d. That is ~Tong 0~ a matter of social p01icy. I~ we ~re going to s~y ~hat everyone who is emDtoyed for money pay8 ~omething in~ t/le Niedieare fund. even thOUgh they will • get no ~reater benefits than if they ne%'er worked to pay anything Lnto the ~und. ~hen everyone who works for wRges ought to De7 S0m~t hinff ulto %he fund. That's the first questi0n. Se~ol%d ClU es~ior~-- ~ m~tter of tlr~ing. The B~dge~ Cornnlit,t ~e Would h~.ve Ln- e]t~de~i Ril et%r~ez1~ ~.-id .'low employees under the Medicare System on JanU- ary 1. ~986~nexG JanUary. 2!% months fron% nOW. Th~ F~[na~ce Corn~litteo thought that was too ~.pld. And ~he Senator from I~laLne amd Others ar~Qed'4{ery cogent!y ii~ the co--it tee th~ it ~s.~ too rapid. SO ~e eha~ged that da~e to October I. 19BB. a 9- mont*h slip from what the ~ud.et Committee had. I thi1~K we h~2;e a fnlr compromise. This r@concilit.tion bLll is going to be pa~ed, and sent to the President I wo~dd think in the nQx~ 2 week.% 3 weeks, h0Defully. That ~ves SLales 3rid Io~a[ ~overlIiTiel%~s ~ttrtple tir~e ~o pick UD a Day,eat that we r0q1~ire Of every Other ern]:)loyee a~d every o~her e ~'~]DIo y ~r. S0. ~DoJ"t from the nonwage-ea~ng spouse WhO get~ ~ledieate benefits ~s a m~.tter of s0elal po]icy even ~hough he or site ~ys nothing fn~o the fund. we say e~'ecyone else ~ho~Id ~y. ar.d Ch~t includes m~m!ci~a[ employee~, c01untry employees. State employees. &nd L.L. Be~ elnl~lo yee~. 8o. ~ hope cery raueh t~at the amendment of my good friend from M~ine ~H be defeated. I think on policy re~zoDs ~he el'a~loyees h~ve fi~a]y been ~dded ~O the ~e~c~re system. Second. I WOUld h~.te to JeoP- ardize this Whole recon~iHat[on bill by adding a prov~ion ~hst Would 10so rev- enues •nd by adding ye~ a ~'a Jn an addi- tion to ~h~ oig~A'e~te ~S2. ~0 pay for the lost reve[P~es. We ~ hKve a ~O~g~ enough ~irne getiing this pa~ed and no~ ha%~hng I~ vetoed with tl~e 16-cent eig~arette t~. You add that. and I think We bring the Whole reconcilia- tion crashing do rcr~. I llrge the defeat of this sxnendment. The PRESIDI~O OI~ICEI~. Who yietds %ime? Mr. MITCI~ELL ad~e~secl the Chain The PRESlDI~O QFFIC~. Tile 5 Z001373

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S 1379~ CONGRESSIONAL RECORD- SENATE October ;22. I J85 :~¢ as ~h~.r prme!p~l p~blic revenue vo;e for this all the time, and yet gram is basically funded by ~etive sQuree, Ot1!er,yise. they ~re largely de- pendent ell funds frown the Sta~e and FederM gove~ment. The dmtinguished Senator from 2,1~saehusetts jl~ spoke of how mu- l~ciD~litie~ ~e dependeI~ upon prop- erty taxe~ for their priricipal public r evenlle sotwce. BecRtt~e this ~/ledicare propos~ im- paet~ znunicip~lJties ~n almost every State, I urge mF coUeague~ to take a moment ~md tPdnk about how they ~re going to explain their vote on thls a~r.en~ent to thef~ local policemen, schooite~her~ ~d flreftgllterz. FOr e:;~mple, most of us in th~ body a~ree that OUr Nation's $chool~e~.ohel~ are ~Inderp~.icL ~nd we have said we wish we could pay our chilclren's teachers ~ore. Eo~ever, if we do riot modify the budget le~i~laLlon -now before u% we will he taking" out an additional 1AS.percen~ bite ou~ of'the Daych~k~ of abou~ one~thLrd of these teache~ next fall. the~e kinds of decisions are eon~Jnua/- ly m~de [r~ the contex~ of th~ ~%/dget reconciliaLiOn legislation. Mr. President, I commend the distin- guished Senator from .'~Iaine. lYIr. i~crffTl, for offerin~ the pendLn~ ~o SUl~por t it.. • . The 2RESIDING OFFICER. Who yields time? . Mx. P&CLC%VOOD. Mr. Pre~£dent, I }Sold 3 mJnu~es Lo the Senator Zrom Kentucky. l%f~'. FORD, l%fr. President, I s3~pao thize ~th the distinguished Senator frora Maine. the Senator from ~Imsza- chu~etis, and the Sena~r from Ghio that we c~zn h~ve problems. My ~.te has problems, too. I r~e ~ opp~sitlon to the ~m.end- merit by my dis~in~ishetl cel!e~e from Maine, Senator ~EdI'C~EL~ Let me ~y f~om the 0nse~. that I Sl/pporz what he is trying Lo do, I just do not suppor~ the way he attempts to ~ay 8inc~ most State governments el- for it, ready ~ar~icipata in Social Se~LU/tF, - I do not support. ~he provis[or~s of the proposed l%fedJcare tax ~ only the reconcfllatioP, bill, as reported really impact State em~loyee~ and from the Finance Commi~tee) which ~ate retlremer*t progrzr~is hl seven impos~ ~ new tax o11 ~tate Bnd local States, my home State ~f Ohio being one of those States. I have al~ys ~rglled tl~at those ~over~eIiL% whether State or loe~, which took the Initiative to $~ uD re~iremen~ be~lefit Sy3tenls ~ good ~ or better than Social Security should not be penal- ized because they had the foresight ~nd leadership to establish these sys- ~er/ts. When the Social ~ecuri'~y Act wa.~ paUSed in 19~5, ~ate and local workers were excluded [r~m partieipa~Z in Social Security because there were e0n~titutional concerns about Federal taxation of Lh~se governments. In 1951, they were a2dowed to Join Socml ~ccurit y on a veL~ary basis, bu~ only if they did not benefit from any SLate or local gover1~T~en~ re~ire~gnt pro. Wcam. and if they were not police and iireflghtew& It was only eventual/y that we opened Social Security'8 doors to almos~ any State and loca/ employ- ee group ~ho wanted to Joln the Fed- er~.l 8ysten~ Mr, President. I ~'n not happy With the proposed Niedicar~ tax. I am no~ even p~ieularly Dle~ed With the ~r~ posed amendment. Quite sfmply, if it is ~uceessfully adopted by the Senate, it only works to me/co a bad situation a little better and a bad budget plan a little fairer. In It~ original form, thls year'~ Fed- eral deficit reduction pl~n included a proposal ta mandaU~ Soeia/ ~ecurity coverage of S~ate and ](~I employees te~.che~, at the l-pe~en~ cor~tribution rate, but retired members ai~o pay a nor~i~a~ prer~ium for rh~ m~dical cov+ e.'~ge. There ate c.Jxrently 44,000 a~tive te~c~e~ supporting po~%~'etiremerkt medi:~l coverage for 22,000 retired teac[~erz a~d spo~es. It would be pu- nitive, at boa1;, to add ~ adchtiop~.l 1.45 percent Medlcaze ~x on these Dublie employees. For a Kentucky teacher earning $20,000 a yesr, ~n.d that l~ a high salary fcr a Ee.ntueky teacher, the additional cost for future .~f ed'care coverage would be $29o. At a ~/rae wher~ We in Congre~ are stri,,~ng ~0 en¢ou2~ge our young ~e~ple to enter ~he teachl~g pi*o[ession+ aIl~ ~ro%~de incentives for ~hose who are c,.nreh~Iy teachin~ ~o remain £n the field, we should not be adding ~ new t=x to Sta~e ~nd local emploFees. It Is unfair to single ou~ this group of Work e]~ ~.~ a/ri~ P~rt S Of pI'~ dlloirlg r~t-~ hUeS for d elicit reduction. ThL~ new tax represents a f'o2%da- mentM shift in philosophy for our Oovernment~ This new tax is n=thln. short of zn attem=~ to shiI~ the ~overnments a dthat i I wha burden of defici~ reduction from ~he © -- ~ ~eX~t y t f it is Mr Prealdent and new Feder~J Federal Oovernmen~ ~o ~he StLe ~nd tax on a ~' v local goven'zrn~n~$. This pro~[o~ The Finance Committee reeommenda- ex~ec ed to produce S~.7 b l.mn un new r~ve~ues over ~he ~ex~ 3 :.' e Rrs. ~alf o~ tha~ .%,'T~OIL~I~ WI/I COrSe fro~1~ ~[?e e~- ployees, and the other half from~tate ~-~d local go%'er'Ar~lenr.~ %~2"e are taxJEtg our States. cities, and counties ~o ba/- a.nee the Federal budget. It is a bad pree ecrent, and one I do .n~ zuppor~. 'l~%e~e IS a &q'~ve l~is~e~ce~sion about the flsesl Portion of our State~ and cities and their ability to fund their portion of thiS new Medic~e ~ax. Our $t~&e ~r~ local governnlents are h~ no be£ter position to finance the Federal debt them are we, A~ Congress continues to cut vital Feder~1 ~.~sist~nee to these govern- ments, in p~rtieular, our recen~ mo~e £~ e]imlnate the General L%evenue- ~AU~n ~ Program, ~ ~ell ~ decreased fl/rlds for other prl3KTa//18, w~ foI~e ollr State ~nd local government~ to pick up more ~ld more of the burden of Dro- viding for the health, safety, and seeu- tion~ ex~end the hospital insurance tax for Medicare to current and new!y hired ~tate and local worke~-~. This is ~0~ ~ voluntary e]cctlo~% for .%ledlcare Covep~ge--it i~ a mandate. ~nd ~h~. m~a~e mes~u~ ~. new ~sd{ on ~t~te In Kentucky, we have four b~ic groups of S~&te ~n,d local employees Who are not currently co'~ered by ~led- ic~re. The largest of these groups is the Kentucky schoolteachers, r~Drs- senting approximately 44,000 emploF- ees. T~e cost to the Co~mnonwe~dth of Eentuck7 for Medica~e coverage for thL~ group alone IS estLm~ted at $12.5 m~/ll~n. That is a hefty ~ax for my ~ta~e, and on~ Wllish We ar~ nol; in positior* to fund. "f"nls ~ax is pertiCul~rly onerous as i~ falL~ on the Eentueky schoolteacher, The ~entucky Teachers Ret£rement System is a~tuardy sound, Eentucky teachers pay for postretlrement medi- rity of o~ citizens. There aze no sur- ca/insurance. To impose this addition- Dins do]/~'~ in ~he tre~.~urles of these ~d tax on them i~ slrnply Lu~fair ~nd - gover~n~ent~ to pay for their share of ~etessary. • the ~r..datory iV~edict.re ¢0v~rag~. Since 1939 the ~entueky Teacher'~ Th~ move will reqmze new tax. h'atla- Retirement System has provlded Een- tires, and ~hat will take time. Lucky teachers wit/~ a sound, funded, The Sea.ate Finance Committee re- retirement syste~ As my colleagues cogized this need by delaying the pro- may remember, public employees were visions of this new tax for i year. ]But prohibited from participating in ~oci~l that, L~ not enough t/me for these gnv- ~eurity Under the ori~ina/ provisions ernn%ent~ to prepm~ fgr th~ new burden. The amendment by the Sena- tor from Marne, Son.tar h~n.c~:~u, at- tempta to addre~a this problem by f'Jm- thor delaylng the provision refluL, ing rnand~.tory ~edic~'e coverage for cur- ren~ employ~s, by i ye~y. I support the intent of wllat my dt~tin~hed colleague ~ doing. I suppor~ grsing o~r Sta~es and eommurdties additional 52200138£ not alrexdy under the sT~stem. I m~ of the act. Kentucky teachel~ Day fnto pleaaed that, thu~ proposal h~.~ been the retirement system at a ra~e of 9,5 scaled b~ek to or~ly m~d~t~ Med~c~re percent. ~h£Ch is rn~t~hed by the coverage. ]z[owever. I WOUld like tO - St~.~e. Of that contlJhution, approx,. r~Iru~Id InY collea~es £ha~ tnany of us mately I percent goes ~0 a postretire- in ~his boilF h~ve ar~ed th~ Social merit ~.edlca/ ins~r~u~ce prog1-'~/n. The Security and Medicare ~r~t {~J:I~d decL- c'J/Teng COSt of the fund is Sl5 ~lion, sions ~l~Ou~d not he rflade for the put- ~2%d is expected to rise to about $20 poses of I~der~l deficit reductiot~ We million Ltl the next ~ years. 'the pro.

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Gcto~r~22. 1985 . . CONGRESSIONAL RECORD--SENA2 S 1379;] • tlme to try to mee% ~h.~ ne~. resDonsl other t0DZtCCO StAte Sena*ors ~}ou*d product by mcre~-strlg ti]e ¢igRrett~ bllity. ~ld I WOUld ]ik% to Su~Dort il~.'ll not oppo.~: the redes1 o[ the tooacco exc~e "~ax. E~I thotlgh I syrnp~nlze • on hLs amendment, excise t~ .Tar*set. B~/t let me be c]e~r~ with W[l~t~ the SePJtt°r from ~ai"le I do not think it gees far enough, t zn~ move to enange me provlslons, to doing I cannot supvort him, and W0Uld ]~reler th~.t we rlo$ tax the S~te inere~¢ the ~.x ar~ all. will re,i/It hl tlr~e RIy colleabqleS ~o defea', tilis whole lo% o£ people trying to help me do that. We nibbled away ~.¢ revenue sharing whi~ ~s d~mag~ng the com- munities'and the ~tates by the loss of f~lds. ~/et you want ~o come back to The PRESIDING OFFICER, ~e Senator's time ha.~ expired. Mr FORD. I yield tl~e floor, Mr. Prcsident~ ~NLr. PACt~WOOD. Mr. President• l~t me emphasize again what We llave ~l- ready done in comparison with What Lhe Budget Committee would h~ve done. It is not just Medicare. The Budge~ torero:tree's R~sumptIon when we go~ this bill wa~ tha%, one, we WO~id Cover 9.q eR1ployees, euITent em- plo~¢ees and new employee~ with ~ed* i~.re on J~nuary 1 1986: all new em- vloyee~ on Social Secu~¢~ on J~uary 31 ~.986, and we would. Change the method o[ applying the new Soc al Se- curity t~.~ sehE~tlle to rtew employees of State and local government~. The revenue expected to he raised by that method wa~ $9.1 billion ~ of January I. 1986. We ju~z about cu~ that m half. slightly less than S3 billion. We ~ave extended the tlme 9 mont/Is, we ha;e no~ brought in Soei~I ~ecunty, and. I think it is • fah" O0mprom~e, and one that OUght to be ~doDted by thia chamber. Mr. MS:TCHELL midresaed ~ne Chair.. The PRESIDLNG OFFICER. Who ~dclds time? Mx. lVLITCHELL. ~r, Presidenl I should like ~o respond, d I could. ~o the pom~ m~de by the Chairm0~, It h~ become ~ ~t2~d&rd oper~.tIP~g ~ro- cedUre In Co~Igres.~ Irl ~he ]~t Jew one place--tobacCo--and take that war years ~o have an Inlt'~ posluon taEen ~o pay [or ~he delay for only ! year. that is tot~ly unreasonable, vir~uau~' The House Ways ~n.d Me~n~ posl* impossible to n'nplement, stud then. at tlon. by the ~y. whlell ~ nee ~e~n the la.s~ moment, to move off t~at po* voted on yet. is that you r~xe on new sttlon to another which then. bY ~rtue hir~s~n~ everybody, just thoSe thal of Its comparlson ~o the Initial pOSl- are hired new. I would ll~e to have an tlorL is hailc~ ~ a reasonable compro- amendment ~o the effect ~ha~ th~ m m~se. wlu~twedolneonferenee. - ~ere we are. ]n the fall of 1083. We are goLnE to conference. There¸ There are vlrtually no ~ta~e le~sla- ]Senator DOL% repe~Jed t1%e sunset of are e lot of tbin~s tl~at can be worked t~ras which are in session. We receive i the cigarette tax: instituted a new tax OUt. I have a great devil of eonfldenee a ~roposal that would mandate~man* ~n remake ess tobacco at a rate of 8¸ in th0ze who will negotiate in tb~t date--tax inere~es in mgxly sr.a~es ~: cents per poand on. chewing tobacco conference¸ oon~nittee on wh~t ¢~n be a~d in almost everF munleip~dlty in ~ aZld 24 ~ent~ on snuff and included done. • • the co~itry; ~nd leave them no ~ime i¸ the pr~visi0ns o£ ~. 1418, legislatinn I say again, a tax is & tax is a tax. to do so. Then the Finance Comn~ttce L • deslg~ed to n~e ~he tobacco program Ana the ~enator m pt~ttinff On a new get~ that. a position clearly not possl- ~ mor~ r0arket oriented. - - tax. ][~ is not germane. ~Ve have el- ble to hnpleme.Rt, not seriot~ly Lntend- • - Thi~ was a careftl]l~ negotiated ready had that vo~e. The ChR r hms a - ed. in rny Jud~enL ever ~o be adopt- agreement between the major tobacco ready rued. Now al we i~2~%'e is the ed, but merely ~o stake out an ori~nal n%%nufact~rers, aud bot~ Burley and delay for 1 year. I think We oRght to neg0¢lating position so that a seeond- r Flue-cured growers. For 3 weeks we have It as it is, have a sense-of-the- ary position would ~eem, in comp~trl- hammered out our dd£ferem~es, and on ~enate reSOlution t~t we do oot want son, ~o be re~uso~ahle. That is precisely rise final day %htq ~roup spent 17 long• to pick these current employees Up, what We have here. tedious hou~ workin~ otlt* the f~/!2/ thS.L we want Just new hlres; then we I Want to eraphRS]ze One further packag~ Which became S. I,!18. the TO- can get the job done. I suggest thnz to point; The cigarette tax Lncr~e would not be permanent ~der the baCCo Improvemeng Act of 19~5. This my culleagues. agreement then bec~%r~e ~ar~of the Pi- TobacCo. and the smoking public amendment I am Disposing. It Would nanee C0mmi~tee me~ure under rec- who enjoy alegal product, are contrib- be for 3"years 0nly, sufficient to cover uth~g their fair share to deficit reduc- or offset ~he ]os~ of revenue in t~e 1 oi%cltla ~Jo 61, It was offered in ¢¢rnmittee a.~ a tion. We should not further penalize year delay 0f ~,[edicare coverage. thre~part package, and was adopted midd/e- ~ud low-income Axaeriesms ~'~nally, the Senator" from Oregon. with the a~'eem~n~ that L and ce~aln who; of their own free will. enjoy thLs the d~tfn~uished chRirraan of the¸ 32Z0013S2

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S 1~,,94 CONGRzSSIONA*. RECORD--SENATE October~.. ~980 Committee on Finance, re&de, as MIL PACKWOOD. Mr. President, I er Medlc~ 'xill aDpb'. It~a question ahcay,% ,% Very eloq1:eI~t agTnment in want to ~nake sare the ~en~te und~r- of when. And if we are ~oing to impo~e (errd5 of £he 12oli~y oil w~le~her 0~" nt)~ 8~8~rId$ I%0W orl whK~ ~%e ~r~ golnff [0 .~dedic~re c0ver~ge should ~DDIy uni- vote. The amendment of the ~en&t0r formly to employees ~hrougnou'~ ~he from .%~alne h~Ls be~n divlded, W-e are • country. That decision has been raade, going ~o vote on, fltsL his portion ~0f Tha~ ha.~ nothing to do wish this :he smendmeIlt which ~el~.ys for I 8mcrldlmen~. This araendl~en~ ~aises year ~he ex~e/~ion ~f ~[~dicar8 eov~r~ one question and one ques~ion only: age to ¢~irrenL employees; is tha~ cot- That is t~e aate 011 W~iCh I~nd~tory reef? • ~ovet'aKe for" curren~ employees of The P~ESIDIN(~ O~iCE~. The that burden on all these ro.un!ciDs.i[-, ties, all of the property taxpayers in this country, at the very leasz ~e ough~ to h"~ve ~Zhe courtesy and the de- cency and the spirit of f~.irnes$ tu perr~J~ ti~e~ ~o have fl/ne ~o ~'repare for, plan fob a1%d en~,cI, ~l%e t&x ir~- cre~se $o they esA1 ~c~u~ly ~f:t the rcv- eiiL~e wheD. they 8re force~[ to start 8tare and local g0vernraents Will Senator 15 eorrec$. - p~.ying the hi]/that We are now imDos- ~-pply. New hires wlll remain covered Mr. P~.cKvqooD, A/Id, second, we ing on them. Inand~.torilF as of September 30. 1986. will then vote on ~he increcu~ed ci~- Mr. PAC~.VOOID. ~r, President, if The only questi01~ ha.~ nothing to do rett~ tax? " we are going ~o t~,[~, about equities and ~.'i~h DoJicy: J~ ha~ to do with t~.mln~, I The PFL~SIDIN~ O]~9]CF/L The g0in~ &rottnd ~ncrea~fng people's would ~ay It ts simply fairness to give Senator ~ correct:. Laxes, wh,%t is ~auce for the goo~e Is the mtlnicipalities the ttr~e to prepare ~r, PACKWOL, D, TD.~ Senate .hI~s ~uce for he g~-nder. Let t%s rel'er~e ~or ZI~d t0 ~nact the i%ew t~xes w~ich alt'e~dy ~xo~% t)'; 9;t'i~& I Chlt:(c is 8. the Co 11 -A'I~dic&~ eo.~t~ s.rB goin~ liD, ~h~s w~il require. , wry prel~onder~nt vote ~ts d:~mcl~n~- Med care axes are evied upon. at, e h~ ch~Irms/I h/P~seif "Ni}! recall ~loI% .o vo~e fo~ ~n !i1cre~ ~. the ClQ~.- ~ . ) • .... rI1orn£y~t~ ~ ~'~ ~i~ely defln~ble g~'oup ~hS.t ,&*hen I raISsd ..... th~ u,l the Finance retie £~.~ see% ~ the preseI1t it~ cents, o~emDoses,*e ~r~d wedo 11o~ br ri=o Corm~l ee and sald d, bs ~eonsi~ten% but~ t3na~ m the 8e~ond par~ of this the Sta~e and rnun clnat em a "ees for Federal o~fJcm.s like ~ to go arnendmenL Thn~ ~ OUL For the inco It Chert the ~fedlc&te [~es are &i~otlndsg.ylngto people "%'4e sge not mornentwe~.regotI%~tovo~eondel~.y, goii~ lip ell the others who zre &b raisinz Foul- t~.xes" then to p~x.s8 ~ biU Irlg the ex~ezl.sion o[ Medics1"e pl).y, r~Kdy payL~ ~,~[e~care ~sx~. A/~O. we ~h~ch requires every ~o~Tt [11 Arner(¢~, merits for l year s~ & cos~ of abou~ 8Z.2 con s'C~nd back alld say we did net in- to i'aise ts.xes, th~ chI~irm~I% ss.id, very billion- I believe my good friend from crease ~otlr t~ce$. They c~r$ goiilg to forth."ightly, '(Nobody Is kidd[n~ ~hem- IV[sine w~]~ hndic~te ~h~ i~ roughly the ~ Up o~e 7.ay or the ofher ~nd ~e ~elves; thi~ is a L%X in~re~se." The cos~. $o We are goh~ to hs, ve ~. budget ql/es~1on i~, are ~hey ~oh~g to go uD problem i~ it is ~ LCU% increase Which. loss Of $2.~ billion the first hB.]f of this mere on those who ?*re currently ~%'e2~ se~ee~nan, m~Y0r, and n]ds;rr~an ~/nendr°ent &nd hope ~"~ Pick if ~'IP p&ylt~ ~heIT& or C~re ~'e ~0ing to hrfn~- In Ah~cric~. will b~.%,~ to L'.~Dose be- l&ter* ~[~ybe We W~lh mB.ybe We will i~to ~lle system ~%eryone who is rLo~ cause we ~.re ruRking them (~o it ~o we C~A~ ~0 ~rO~I%d ~.~d Say tO oIlr cOt~i£Lt. ~[S, "We ~re nell r 21sII1.~ ~ot~ tRXCS s.t 1he Federal leveL'" if 're are going to do that. and we 0b% [OtlSly 8.Ee goII%g %o dO thB.t, nil I ~y~n~ Js'gJve then~ ~he tllne to pJan for iL to consider w-h~ tax increase is better Lu~der this circ~rnat~ce, t, nd to ~ut i~ int~ effect- T~I~ ~ ~he nn/y ~ue. Mr. President) I ask for the yem~ ~,~.d Ii~t ys ~It my [t mend~Jae~t. The P~IDING OFg'ICE~.. Is tliere ~ ~ul/tcien~ second? There L~ suf ficien~ second, The ye~s and n~.ys were ordered. ~,L~ /V&'TCE~LL Mr President, KSk ~or m division of mF ~ e nc[n~er~t On p~ge 3 between lines 15 and 16. The PI~EStD~NG O~CiIi~. & dfvi- SiO~ L~ req1~ested, ~r. PACKWOOD. ~,tr. President. how Irtuch ~qrne rema~? The PR~IDI~G OFFICEI~, The noL Bu~ I |lODe W~ mre llOt ~oL!lg to slart down {his proce~ of loss and hope. loss and hope, loSS ~nd hope be- cause indeed it is ~. loss of about $2.2 biIi~on if we delay the extension of ~v!ec~ic&ro coverage for ct~rrent ~mDloy- ees for 1 ~-ear. I wo&LId ~g~/i~ urge that I~y col]e~.8lles defe~.l; this ~me~l(iineI~t iu its entirety and-szarG by defe~ting the flrS~ ~e~en~. of it. /~r. MI~CH'FT,T,. H~ the ~enator completed? Mr. PAC/C~/C OD. Y~s. ~[r. I~L~2 C ~ LL. Mx. Presldenu The PI~ESIDING OF]~ICT/~. The Sen&t~r i~om ~laine. ~Ir. M/TCHELL. I merely wanz %o repea~ ~;o pcdnr~ tha~ I made emmJJer, and I ask all ~en~.tor~ to c0naider it. The fir~ Is that munleiDahties in every 8~ate ~-3/be teqttk'ed to raia~ Its ri0w pg.yiI%g theIIt.. BUt to SD.y Or% the• one hand, "Oh, no, we ~.re not going to r:~ise your ~_Rxes." or, Lf ',%'e DL%t thls in, ,,~VB a~-e goJ~ ~0 r~se yo~r ~s,e~" i~ et%L~ both w~.y~. We either increas~ the t K,xe$ 0Fz ~hose Cu ~'ell [i~ C0 ~,~r ~d 0r ~. & try to ~I~}~e ~he bKse bro~der and tn~re fau" by bringL~g in under e0v~age those who now p~y no ta~xe~ at all and get I00 percent of the benefits. I would ar~e ~h~t the ~quities are more on Lh~ s~de or br]ngin~ everyone in ~d having ~hem a/l pay t~:es th~n to rKise %he t~xes ~ore th~i~¸ w~ wot~Id otherc¢ise r~L~e ~he~ beo~se ~'e do no~ £ne/ude wi~hi~ the ba~e those W~O pz.v no L%xe~ at all. I~Y. MITC~I,T, &dd~essed the Chzir. The I°~F~IDI~T~ OI~IICE~. The ~axes if my ~men~hr*en~ is defeated. Senator frora ~Is.[Ine. And they v.~ll huve tado so with very .~,~. MITCHELL. I merely respond l~ttle time to plsn for, preps.re for. ~d by se.ying ~he rea.~on St2.~e onmd local enact that ~ incr¢'a~e. They ~ill be government employees were no~ ttnder Senahor from Oregon hzs 17 ~Jnutes, forced to do th~ by sctions we ~re 59 ~eeon~.% The Send.rot f~om Mmne • t~king sO t~t we oan con~kque to go h~ 2 minutes and 52 ~econds. aroxind 0a~ga ~eL! th~ ~x.erfcan people, M'r. PACICWOOD. ~ I ~inder~tand that the division is requested o~ the eig:Lrette t~ ]~1.t of the ~.rner*dment first? The PR~SIIDrt~Cr OFFIC'E~. Tha~ will b~ voted or** 3eco~i. l%Ir. PAC~OOO. M~'. President, I ~IggC~L the ~.bs e lice o~ ~ cEn0r~ra. The P.q~SIDING OI:7~IC~, The ~lerk ?;ill c~ll th~ re The ~s~f~tant legislatlve clerk pro- ceede~ ~o call ~he roll, Mr. PA~OOD. Mr* President, I B.Sk U~l:%ntrfl0LL~ COI%Se~ th~&t 1.he order for th~ qu0 i~m call b~ rescii1ded, The P~F.~SIDING OF~ICEI~. V4ith~ out objection, i~ is SO ordered. ,,%-e ere not ma~,~ yE~.l, taxes," Aizd evel3" 8e~abor who votes for the corn~ mlttee bill ~xld ags/Dst my ~mendrne~t /9, m fsct, votL'~g for a t~x increase, m~ the Sen~,~or from Oregor~. ~he c~ha~- man of ~he eoramittee, for ~hri~h~ly ~c- knowled~[ed dtlring the l~ln~nee C~m- mittee deliberation. ~Vhst we ~re dDJ~g i~ voIi.~" ~o compe} se]ec~:~en ~d mmFo~ Knd aldermen ~o r~l~e tKX~ &t 5he local leve! ~o we c~.i% go • ro~d ~L~d k~ep s~.ying, ,~We 8~r~ ~ot. raising your k~,xes." And as I s~id in my earlter remsrk~, Lnconsis~ent ~ the mo81~ generou.~ phra~ t csm ~ to ~-~ strobe that beha~o~, Now. th~s can be done. This L~ ~o~ a quentin ol ~'besh¸- So~a3. Security Knd ~ledie~'e is be- ce, use we, by law. prohibited ~hem from being %under ~ed/cs.te for many yeer~. Tha~ i~ ~he re,on ~or it. Now quh'~s them to come under it. An~ ~he e~u~tF of that lass been deelde~L Tha~ " m no~ being debated. The onl.v ques- tion is. shO%lld we do so in a pr~-~ipi- tous ~a.n~er so ttlat ~e $~.2 billion t~.x ~ ~re requiring the~ tow~ to ~he same ~me t/~at they lose the $4.6 b ~ioD. from reve~lue sl~a~ t.h~.~ they are gol~.g ~0 lose~ neg~.civ~ effect on the £tna~eia/ con~/~ion of the munEci* palitie~ of Americ~ of $6.8 bfll~n ~ All troy amend~en~ WflI do will he to delay ~or I year ~hat 1:~r~io~ of ~he ad- 5 zoola ,

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G¢,coer ~=, 1,985 lethe imD~et tlxat is ~ttri~u~le to ~he E:~ mendS.tory coverage under Med!c~.re. E:~oa F,o~a They ar~ still going to I~ve to pay. Garn The equiu.' question Is resolvecL The oom only qu~tion is when. iI we are going ~non G raw_m to do it. ~nd it shou/d be done. I stay G~ley We one additional year to prepare it. ~h The PRES1DL~O O~ICZ:~• Who ~zwzim ~2elds time? If no one yield~ time, all .-.~,cm Heflln rime k~ equally divided. Heinz Mr• DOLE. Mr. FTesident. how inuch Eetm~ time ~m~.~ns? Ho]Im~ Htu~ ~z~b• The pF, ESIDI~IG OF~qCER. Eight J~ra:on minutes and t-xenc~'-six secon~ for t~2e ~enasor fronl Or~gon, and :lo ~i!~le for the Senator Iron Maine. Mr. DOLE.. t~ow much time remMns on Ihe bill? The pI~ESID~G OFFICER. Seven hours ~d eight minutes. Mr. DOLE. ~Lr. President. I am goi~lg to ~3ove ~o table divl~i~n 10[ this ~mnendment. 5~ I understand, the • raendment h~ been divided. N~y motion to table will be on the firs~ DaT~ 01" th~ a~en(~:~eflt. Mr. Pre~idenL I hoDe the attend- meat will be trebled. We just wen~ through an exercise here• m,'my of ~L% 70-some Sen~.tor~, on the S0-caHed Gramm-Rudman amendment, and all t~e ~.hings We were c(lncerr~ed abo/t~; and now we ~re %~21/ag to find some ~r. Presidenl:. I yield ba~k the re- mainder of the time, and I move to table dkusion I of this amenament, and I ask f~r the ye~.~ and nays. The pRESIDING OI~.ICER. I~ there a ~uflicient second? . CONGRESSIONAL P~ECORD -- SE~NATE A~nor ~n~en I]iden Coima D'Am~to S 13"95 I.L~se~aum Quayte Ka~t~ ~iegle L~xzlt R0¢~e[el]er Long Roth MCCO~ Stevens Mdcher SI~ M0ynih~n Thu~on~ ,,¢unn ~xZ~op i: ac k~,~ • Warner prettier Wem~er p~vxmge Witsoa NAys--25 DlxDn L~vm Dodd . ~ e~nbaum O~eru~ Mi~¢he~ PUll ~arOane~ lOC:IL bonds £haZ rilg~y inVOlVe exemp- tion of Federal taxation. Mr. RLEGLE. ~r. PresidenL I wont Io COiXU.~l~[1d tile ~al~kJ.~_~ C0n~/listee Chairman for his work on this legisla- the term 'ot~er Pederal a,~tm~ce" in tl!is case does not include financing %hrough II)B's or other forms of fi: n~n~ng that do not involve direct Fed era[ funding to the project. The UDAG Program is intended to eneour-. age cities. Sta~es. and private business to use all of the resources a~ their dis- pc~aI t@ held develop the economies of distressed cities. This provision L~ con- ~isten~ with that obJ~Jtlve. I also wa[1~ to pont out that the commfttee in- tends to leave i~ up to the Secretary of HUD to act ermme the extem to which Ee~ Silken tamc~er~ - . . nofl-LqDAG funding should be cor2id- L~ay ered in D~DAG project Selection. NOTVO~N~--8 Mr. GAR~. Mr• President, I agree ~o~e~ ~OldX~ter :<athi~ with Senator P~tXCLZ in his in~erpreta- I~-~otlh FI~t lield ~p~ter ~iOFl O~ that pro %'LSion. v2~aetoo Inoule : s:em~m NIX. DOLE. Mr• Pr~idenL let me in- . SO the motion to table dk~i~n one dic~te ~o my colleagues that we do of ~rnendm.ent NO. 840 was a~eed to. hope to be on the DOT appropriation~ , N:r. DOLE. ~r. President, I move to biH by 9 o'clock i~ Ihe morning. I have reco~ider ~he vote by which the disclosed tllat wish Senator CHILES motloD W~ ~.~[l"~ed to. ~ gud Sells, lot ~.~D~KAVS* l-~oDe.~ully, We Mr. DGMENICL I move to lay that could complete action on t~a~ ap~ro- m~lien on the table, priaticcn bill by 12 or I o'clock and The mo~ion to lay on the table was tlien come b,%ck to reconcflia~Lo~ to- a~o'eed to. morrow ~e~ooiL -Yr. DOI~,, h~Tr. president, parUa- mentary mquiry, x,Vh~ happens to the " ~eeDnd cik~o n now? The Pk~XD~'qG O1rSqCEi%.'The yeas P.~. ~ys ha~ ]3eeu o~dered 012 It There is a ~uf ficien~ second, and that would now be in order• The "ess and na 's were ordered. : ~i%fr" DOI~ Mr. ~/'resident. le~ me. Tile p~ESLDING OFFICe. The ~'.eld to ~he ci~gu~led ~ena~or que~tion is on agreeing ~o ~he m0 on from t,121ne. I have indicated to my to tab e dlvis on i of the ~endment• colleagues tha~ there WOUld be no O[1 th1~" qUeSt 011 ~he ye~s ~d 115¢~'3 moI'e, votes th1~ evenlng.. I hope we have been oraere" d. and the clerk V.~ll might be able to ~ntlate ~hat. . eal/theroil l~. MITC~LL. Mr. President, I • ~ . - ~ t~nimoIl~. ~p.se~ tha~ the 3"e~ The a~s~s~ant le~nslatl~e elerm cai!ed . . h tel and nays on d[viston ~'o be ~ntm~ecL ~' ~Ir+ ~IIVIPSON. I announce ~hat the The PRESIDLNG OF~ICEP~ Is the Senator from Mi~ouri [1~m. D~- there objection? WitD~0ut obJecison, it feral, the Sen~.~or from ~izonm Fh~r+ ~ ~o ordered, end.tot ~rom Ore-on Mr. DOLE. ~.Ir. Pre~idenL h~.ve we OOL~WAXX~I. the ~ . - ~ d o as.cot from Is csed cf that. Ma.{Mr'yla[1dHAT~I~]'[Mr. the ~ea~d t h e, Sen- The PRESIDIN~ O~ICER. We ~T~]'_N[r SpeCTeR would still h~ve to voice vote that. ator from penn~ylva~Aa [_ . ~ ] The question is on ~greeing r~ divi- " t&hom~ IV~r ~t" el2 two %a~re]e~sd. the Soma or from Okl [ " Mr. GAR~ ~ president the Bank- ~ORENI t~le ~ellator from ~S0~I~I ~ a • ing Commktee hms ted y re ched [Mr. EA~LX~ON], the Senator from a cement on • bill to achieve the sav- ~.&.aii U~" r~o~E ~d the Senator . aT* rags caned ~or under the budget recon- from M~ISSlDDI [zN~r. STZI~rt~S]. are eflia~ion h"~truetio~ I wish t~ c!adfy neee~sag y absen ~ • . • . t.e co--trees lnten5 On Olle ~ro%l- The pI%X.~IDING OFFICEP. (Mr. . . thor en men m hat egm~on, ~he one dea- ~ose~t~l.~z}. Are ~here any ~ S " ing wt~h an Irhprovemen~ in the Urban a~ors k~ the Ch~T~er who des/re tO %,O~e? . Development' Action Grant Progr~l. The bill pro~qdes tha~ "To the cxte[1t The result, w~ announced--yea~ 66. the Secretary of ~ deems a.ppropfi- nays 25. ~.s follow~ ate. the extent of other Federal mssis ~+ [iR °~lcal~ Vote N°- 2~1 Leg'] ~oe to be made avai!abte--in addition yEAS~6 to Lq3AG--shall be considered" in ap- Andre'~ Bl~d D~n ~]ying certain selection eri*~er!a. I wan~ Ar~-¢tr~nl CIl~fee D°le tO make it clear that the term "other B~UCLX~ Chiles I3omenlca ~i.~, ccc!~ O,ten~r~er l~edert.1 e~s~star, ee" does nc~ refer to Bt~2tl*ez DeC~to* ~t financing ]Droeided t~roL~gh ~&te or

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