Tobacco Documents Online

' INTER-OFFICE CORRESPONDENCE May 6, 1983 TO: E. A. Horrigan, Jr. G. H. Long R. A. Eiaken S. B. Witt, III R. Sustana C. A. Tucker FROM: Gene Ainsworth SUBJECT: Advisory Council on Social Security The staff of the Advisory Council on Social Security issued a report listing tobacco and alcohol taxes as a means of reducing the financial proble.ns of the Medicare system. The Council is expected to consider this proposal, as well as others, at its May 24-25 meeting. The Tobacco Institute is coordinating a program of contacts with each of the Council's members prior to its May 24 meeting. The membership roster of the Advisory Council on Social Security is attached. Paul Sticht, a member of the U.S. Chamber of Commerce's Board of Directors, has discussed the matter with Richard Rahn, Chief Economist for the Chamber and a member of the Advisory Council. Please review the attached membership roster to determine any special contacts RJR might have on the Council. I have a good contact with Mike McKevitt and will talk with him next week. Karl Bays, Chairman, American Hospita?- Suppty Corporation, serves on the Board of Standard Oil Company (Indiana). Herschel Cudd, a member of RJRI's Board, is a former Standard Oil Executive Vice President and Board Member and could possibly be a contact with Bays. Ad- ditionally, someone in RJRI's Financial Department should have a contact with James Balog of Drexel Burnham Lambert. Please let me know of any contacts you might have on the Advisory Council. For your information a background piece, prepared by the Tobacco Institute, "Major Arguments Against Earmarked Taxes on Tobacco and Alcohol for the Medicare Program" is attached. Gene Ainsworth GA/jld Attachments cc: Paul C. Bergson ..a . ..~.,...,..-....,.~..._~..a...._.- ..~_......~~r~.