Tobacco Documents Online

DRAFT PROPOS£0 POLICY POSITION ON MERAL EXCXSB AND ENERGY TAXES BACKGROUND PresSdent Clinton is promoting an agressive agenda for the Unit.ed States, In the areas of deficit reduction, economic and socla]l policies. Government spending }iae escalated to an a12•ttme h ig h, while America's savings and investment rates are still the lowest in the developed world. Further, unwarranted additional taxation will surely perpetuate the long-term continued decline i n the financial position of the United States. Sma.ll businese and = s tar t-up companiea play a large role In our Southern economy; with - ag riculture, construction, manufacturing, mining and transportation a 1 l significantly impacted by proposed new taxes that would place an u n du e burden on our Southern consumers, producera and workers. Cotton,' poultry, rice, soybeans and tobacco would be especially vulneXab].e to energy and excise tax increases that would only serve to further exacerbate the diaproportionel and Adverse economic fmpact of federal policies In the Southern states by the lose of as many as 300,000 additional jobs. NistoricalXy; the median income In the Southern states In below th e n ati onal average, and several recognized studies attest that consumer excise taxes place a disproportionate and unfair burden on the least affluent families. A more recent study by. ThQ Council of State Governments clearly shows that imposing add.itioQal consumer excise taxes on a2coho2, motor fuel and tobacco Would be an inadequate and unreliable revenue source for vital services, and an increase In consumer excise taxes will result In a loss of nearly $ 3 Billion In tax revenue to stdte and local governments, Moreover, Wroposed Department of Defense baSe closings will result in the loss of da many as 54,000 additional jobs, disproportionately and adversely 'Jtnpacting the Southern states.

, . RBCOMMENDATION Thatt the Southern Legislative Conference of The Council of State Governments strongly opposss the inclusion of federal consumer excise tax and energy tax increases In current and future federal policies. Furthere the Southern LegislativQ Conference urgea President Clinton and the Conqrese work together to attain a program of progressive reform that will improve living standards for all Americans by impJ.smenting sound economic policies and esta.blishing a long-term strategic plan to revive American competitiveness and to stimulate America's domestic and global growth. Sponsored byz Representative Charlie Wil2iams, Mississippi Cheirman, Southern Legislative Conference ~ April 28, 1993