I HAVE BEEN ALIVE FOR 55 YEARS. I HAVE SPENT MUCH OF THAT TIME
           TRYING TO GET MY MOTHER, WHO IS NOW 85, TO QUIT SMOKING. AND I
           HAVE HAD NO SUCCESS. NOR DO I BELIEVE THAT BY RAISING THE
           PRICEOF CIGARETTES THAT WE WILL ACHIEVE THAT RESULT EITHER. BUT
           THE POINT I WANT TO MAKE TO BEGIN WITH IS THAT, IF WE COULD
           HAVE A RESOLUTION THAT WOULD IN FACT KEEP PEOPLE FROM STARTING

           TO SMOKE AND STOPPING PEOPLE FROM SMOKING, I CAN'T IMAGINE THAT
           ANYBODY WOULD VOTE AGAINST THAT RESOLUTION. ALSO, CONTRARY TO
           THE RHETORIC OF MUCH OF THIS DEBATE, I DON'T FIND ANY LOVE
           ANYWHERE FOR TOBACCO COMPANIES. I THINK THAT IF THERE IS A
           PROBLEM IN THE DEBATE, IT IS THAT WE CREATE THE IMPRESSION THAT
           WE'RE PUNISHING TOBACCO COMPANIES WITH THIS BILL WHEN THIS BILL

           HAS IN FACT EXTRAORDINARY PROVISIONS TO GUARANTEE THAT TOBACCO
           COMPANIES WILL NOT BE PUNISHED PUNISHED. WE TALK ABOUT TAX
           INCREASES AS IF THE TOBACCO COMPANIES WERE PAYING THOSE TAX
           INCREASES. BUT, IN REALITY, NOT DOLE THEY NOT PAY THEM, BUT WE
           HAVE WRITTEN INTO THE BILL PROVISIONS THAT MAKE IT ILLEGAL FOR
           THEM TO NOT PASS THE TAX THROUGH TO THE CONSUMER AND,
           THEREFORE, THE TOBACCO COMPANY IS HELD HARMLESS FOR THE GENERAL

           INCREASE IN TAXES ON CIGARETTES. THE COLD REALITY IS THAT WE
           HAVE BEFORE US A BILL THAT RAISES TAXES BY $700 BILLION, ONE OF
           THE LARGEST TAX INCREASES IN HISTORY. THIS TAX IS NOT RANDOMLY
           DISTRIBUTED AMONG THE POPULATION. THOSE WHO MAKE LESS THAN
           $15,000 A YEAR WILL PAY 34% OF THESE TAXES. THOSE WHO MAKE LESS
           THAN $22,000 A YEAR WILL PAY 47% OF THESE TAXES. AND THOSE WHO

           MAKE LESS THAN $30,000 A YEAR WILL PAY 59.1% OF THESE TAXES.
           THE CIGARETTE COMPANIES WILL PAY NONE OF THESE TAXES. NOW, I
           HAVE OVER THE RECESS STARTED LOOKING AT DATA ABOUT MY STATE,
           AND WHAT I'D LIKE TO DO IS TALK A LITTLE BIT ABOUT THIS DATA
           AND THE TAX AND WHAT I AM TRYING TO DO WITH AN AMENDMENT THAT
           IS NOW PENDING BUT THAT HAS OTHER AMENDMENTS PILED ON TOP OF IT
           IN SUCH A WAY AS TO TRY TO PREVENT ME FROM GETTING A VOTE ON
           IT. AND I WANT TO TALK ABOUT WHY THAT AMENDMENT IS IMPORTANT. I

           WANT TO SAY A LITTLE BIT ABOUT THE SUBSTITUTE THAT SENATOR
           DOMENICI AND I WILL OFFER WITH SENATOR COVERDELL AND OTHERS.
           AND THEN I WANT TO TALK ABOUT HOW WE'VE LOST CONTROL OVER THIS
           LEGISLATION. I HAVE SPENT THE LAST EIGHT DAYS BACK IN TEXAS AND
           HAVE LISTENED TO PEOPLE ALL OVER MY STATE, AND HAVE THOUGHT
           ABOUT WHAT WE COULD DO TO FIX THIS BILL SO THAT WE COULD FUELLY
           -- ACTUALLY MOVE AHEAD. AND I WANT TO SHARE THOSE THOUGHTS WITH

           MY COLLEAGUES, NOT SO MUCH THINKING THAT ANYBODY MIGHT BE
           SWAYED BY THOSE THOUGHTS, BUT AT LEAST TO PERHAPS ENCOURAGE
           OTHERS TO THINK THAT, WELL, MAYBE OTHER PEOPLE ARE THINKING
           ABOUT THIS PROBLEM THE WAY I AM, AND MAYBE WE OUGHT TO TRY TO
           GET TOGETHER AND WORK SOME OF THESE THINGS OUT. IN MY STATE,
           23.7% OF THE ADULTS SMOKE. THAT'S 3,130,000,723 TEXTIANS. IF I

           COULD SNAP MY FINGER OR DO ANYTHING OTHER THAN USING POLICE
           POWERS, I WOULD LIKE TO INDUCE THESE PEOPLE TO STOP SMOKING.
           BUT THE FIRST THING I HAVE TO BE AWARE OF IS THE FACT THAT
           THESE ARE THE VICTIMS. THE WHOLE LOGIC OF THIS TOBACCO BILL IS
           THAT THE TOBACCO COMPANIES HAVE CONSPIRED TO GET YOUNG PEOPLE
           TO SMOKE, TO USE THE LANGUAGE OF OUR COLLEAGUE, CHIEF PROPONENT
           OF THE BILL, THEY HAVE GOTTEN PEOPLE ADDICTED TO SMOKING. AND

           SO WHEN I'M SWAYING THERE ARE 3,130,723 TEXTIANS WHO SMOKE,
           THESE ARE THE VICTIMS. THESE ARE THE PEOPLE THAT THE TOBACCO
           COMPANIES, THROUGH ADVERTISING AND THROUGH ENCOURAGING SOME OF
           THEM WHEN THEY WERE YOUNG TO SMOKE, HAVE GOTTEN ADDICTED OR AT
           LEAST ATTACHED TO THE PRODUCT WHERE THEY BUY THE PRODUCT. NOW,
           HERE IS ONE OF THE THINGS THAT CONCERNS ME GREATLY ABOUT THIS

           BILL. WE ALL AGREE THAT THE SMOKERS ARE THE VICTIMS. WE ALL
           AGREE THAT THE TOBACCO COMPANIES ARE THE VILLIANS. AND YET WE
           HAVE A BILL THAT HOLDS TOBACCO COMPANIES HARMLESS, THAT
           REQUIRES, BY LAW THAT THEY PASS THE TAX THROUGH -- DOESN'T
           ALLOW TEM TO PAY A PENNY OF IT IN TERMS OF THE INITIAL TAX
           THAT'S IMPOSED -- AND YET IF IN FACT, AS MOST PEOPLE WHO ARE
           KNOWLEDGEABLE ABOUT THE MARKETING OF THIS PRODUCT SAY, THAT
           THIS BILL WILL RAISE THE PRICE OF A PACK OF CIGARETTES BY $2.78

           A PACK, THAT WILL MEAN THAT THE COST OF BUYING ONE PACK OF
           CIGARETTES A DAY FOR THE PEOPLE IN MY STATE WHO SMOKE WILL RISE
           BY 3,176,000, WHICH MEANS NOFMG BUT LET ME GIVE YOU A NAUM THAT
           DOES MEAN SOMETHING. FOR EVERY PERSON IN MY STATE WHO IS
           ADDICTED TO CIGARETTES, WHO HAS BEEN VICTIMIZED IN A PROCESS
           THAT WE ARE TRYING TO FIX IN THIS BILL, TO PEOPLE WHO ARE THE

           SOLE PURPOSE OF THIS BILL, WE ARE IMPOSING A TAX ON THEM OF
           $1,015 A YEAR IN THE PROCESS OF HELPING THEM. AS MY 85-YEAR-OLD
           MOTHER SAID THE OTHER DAY, WHY AREN'T YOU TAXING THE TOBACCO
           COMPANIES INSTEAD OF TAXING ME?
           IF I AM THE VICTIM, WHY AM I PAYING?
           WELL, THE POINT I WANT TO MAKE -- I'M SURE MY COLLEAGUES
           UNDERSTAND -- IS WHILE WE MAY LOVE POUNDING OR CHEST AND
           VILIFYING THE TOBACCO COMPANIES WITH GOOD REASON, WE HAVE

           BEFORE US A BILL THAT IS PUNITIVE NOT TO THE TOBACCO COMPANIES
           BUT TO THE PEOPLE WHO ARE THEIR VICTIMS. AND THE LEVEL OF
           PUNISHMENT IS A LEVEL THAT IS VIRTUALLY, WITHOUT PRECEDENT, AS
           FAR AS I AM AWARE. IN FACT --
           

           MR. KERRY: MR. PRESIDENT, WOULD THE SENATOR YIELD SO I COULD
           ANSWER THE QUESTION.
           

           MR. GRAMM: NO, I LET THE SENATOR GO ON FOR SOME TIME. WHEN WE
           DO THE SAME, I HAVE TO GO BACK TO THE SOCIAL SECURITY
           COMMISSION. BUT I WILL YIELD FOR A MOMENT ATTHAT POINT. SO, ONE
           OF THE CONCERNS THAT I HAVE HAD IN TRYING TO SEE WHAT WE MIGHT
           DO TO FIX THIS PROBLEM IS THAT WE ARE LOOKING AT THE POTENTIAL
           OF 3,130,000 PEOPLE IN MY STATE SPENTSDS $SPENDING, IF THEY
           SMOKE ONE PACK OF CIGARETTES A DAY, $1,015, HAVING A TAX

           INCREASE OF $1,015. NOW, I THOUGHT LOOKING AT THE FIGURES THAT
           WERE PUT OUT BY THE JOINT COMMITTEE ON TAXATION THAT THERE MUST
           BE SOMETHING WRONG WITH THESE FIGURES. BUT WHEN YOU LOOK AT
           THAT $1,015 FEDERAL TAX FOR A TEXAN OR AN AMERICAN THAT SMOKES
           ONE PACK OF CIGARETTES A DAY IT MAKES THE NUMBER BELIEVABLE
           THAT THE JOINT TAX COMMITTEE PUT OUT, AND THAT NUMBER WAS, FOR
           AMERICANS WHO MAKE LESS THAN $10,000 A YEAR -- SOME SMOKE, SOME

           DON'T SMOKE -- BUT FOR ALL AMERICANS WHO MAKE LESS THAN $10,000
           A YEAR, THIS BILL WILL DRIVE UP THEIR FEDERAL TAXES BY 41.2%.
           SO, ONE THING THAT HAS WORRIED ME FROM THE VERY BEGINNING AND
           ONE THING THAT I DON'T FIND TO BE TRIVIAL IS THAT WE ARE
           TALKING ABOUT A MASSIVE $700 BILLION TAX INCREASE. IT IS BEING
           IMPOSED NOT ON THE COMPANIES THAT HAVE CONSPIRED TO INDUCE

           PEOPLE TO SMOKE AND TEENAGERS TO SMOKE, BUT IT IS BEING IMPOSED
           ON THE VERY PEOPLE WHO ARE THE VICTIMS AND IN MY STATE HAS THE
           POTENTIAL OF IMPOSING A $1,0015 NEW FEDERAL TAX ON A
           BLUE-COLLAR WORKER MAKING LESS THAN $30,000 A YEAR WHO IS
           ADDICTED TO SMOKING. AND IF YOU HAVE A BLUE-COLLAR COUPLE, LADY

           WHO MAY WORK TWO JOBS AND WORK IN A RESTAURANT AND A MAN WHO
           DRIVES A SEMI AND THEY BOTH SMOKE A PACK OF CIGARETTES A DAY,
           YOU'RE TALKING ABOUT IMPOSING A $2030 INCREASE IN FEDERAL TAXES
           ON THEM. NOW, IT MAY BE THAT THIS INCREASE IN TAXES WOULD
           INDUCE SOME OF THEM NOT TO SMOKE. AND OVER AND OVER OUR
           COLLEAGUES WHO SUPPORT THIS MASSIVE TAX INCREASE HAVE SAID,

           THIS IS NOT ABOUT MONEY, THAT THEY DON'T WANT THE MONEY MONEY.
           THEY WANT TO GET PEOPLE NOT TO SMOKE. SO, BEFORE WE LEFT ON THE
           RECESS, HAVING LISTENED TO THIS DEBATE AND HAVING HEARD OVER
           AND OVER AND OVER AGAIN THAT THIS WAS NOT ABOUT MONEY, THAT
           THEY JUST WANTED TO DRIVE UP THE PRICE OF CIGARETTES, THAT THEY
           WEREN'T TRYING TO DECIMATE BLUE-COLLAR WORKERS FINANCIALLY,
           THAT THEY JUST WANTED TO GET THEM NOT TO SMOKE, I SENT AN
           AMENDMENT TO THE DESK. AND MY AMENDMENT SAID, LOOK, IF YOU
           PURPOSE OF THIS IS TO GET PEOPLE NOT TO SMOKE BY DRIVING UP THE

           PRICE OF CIGARETTES, LET'S RAISE THE PRICE OF CIGARETTES, BUT
           LET'S TAKE THAT MONEY AND INSTEAD OF GIVING IT TO THE
           GOVERNMENT TO SPEND, LET'S GIVE AT LEAST HALF OF IT BACK TO
           BLUE-COLLAR WORKERS BY CHANGING THE TAX CODE AND THE PROPOSAL
           THAT I MADE WAS, LET'S ELIMINATE THE SO-CALLED MARRIAGE PENALTY
           WHERE TWO WORKERS, BOTH OF WHOM WORK OUTSIDE THE HOME, FALL IN
           LOVE, GET MARRIED, AND THEY END UP PAYING $1,400 MORE IN TAXES

           BEING MARRIED THAN IF THEY STAYED SINGLE. I FOCUSED IT ON
           MODERATE-INCOME AMERICANS. THE IDEA BEING, RAISE THE PRICE OF
           CIGARETTES TO DISCOURAGE SMOKING, BUT WE'RE NOT RAISINGS THE
           PRICE OF CIGARETTES TO IMPOVERISH BLOU-COLLAR WORKERS. THAT IS
           NOT OUR INTENT. SO WHY NOT RAISE THE PRICE OF CIGARETTES, TO
           DISCOURAGE SMOKING, BUT TAKE THE MONEY THROUGH OTHER TAX CUTS
           AND GIVE PART OF IT BACK TO THE SAME PEOPLE SO YOU RAISE THE
           PRICE OF SMOKE PGS -- OF SMOKING BUT SO THAT PEOPLE WHO ARE

           REAL LEI DICTED BUT WHO EITHER CAN'T OR DON'T QUIT SMOKING,
           THAT WE SIMPLY DON'T POUND THEM INTO THE GROUND ECONOMICALLY.
           WELL, I WAS SOMEWHAT TAKEN ABACK WHEN I OFFERED THIS AMENDMENT
           THAT IT SHUT DOWN THE SENATE AND THAT WE CLEARLY HAVE MEMBERS
           OF THE SENATE WHO DON'T WANT TO VOTE ON GIVING SOME OF THIS
           MONEY BACK TO BLUE-COLLAR WORKERS. AND I'M SOMEWHAT AT A LOSS
           TO EXPLAIN THAT IF THE TAX IS NOT ABOUT MONEY, WHY WE WOULDN'T

           WANT TO GIVE SOME OF IT BACK IN TAX CUTS TO THE VERY
           BLUE-COLLAR WORKERS WHO HAVE BEEN VICTIMIZED BY THE TOBACCO
           COMPANIES. ALSO, I WOULD HAVE TO SAY FOR THOSE WHO WANT TO TALK
           ABOUT THE HEALTH CARE COSTS OF SMOKING, WHEN SENATOR DOMENICI
           AND I IN THE BUDGET DEDICATED THE MONEY TO MEDICARE, MANY OF
           THE SAME PEOPLE WHO WERE FOR THIS BILL OPPOSED THAT AMENDMENT.
           AND THE POINT I'M MAKING IS, FIRST OF ALL, THAT I'M GOING TO
           GET A VOTE ON MY AMENDMENT. NOW, I HAD TO DO MY AMENDMENT AS A

           MOTION TO RECOMMIT WITH INSTRUCTIONS. SOME PEOPLE HAVE GOTTEN
           CONFUSED IN THE MEDIA THAT SOMEHOW MY AMENDMENT DELAYS THE BILL
           OR KILLS THE BILL. MY AMENDMENT SIMPLY DIRECTS THAT THE BILL
           NOTIONLY BE TAKEN BACK TO THE COMMITTEE AND BE BROUGHT BACK
           IMMEDIATELY WITH THIS TAX CUT IN IT AND IF IT WERE ADOPTED, IT
           WOULDN'T DELAY THE SENATE FOR A SECOND, NOR WOULD IT PULL THE
           BILL DOWN. I BELIEVE IF THIS ISSUE IS ABOUT SMOKING INSTEAD OF

           ABOUT MONEY THAT THE SENATE WILL ADOPT MY AMENDMENT A
           UNDERSTAND HOPEFULLY ANOTHER AMENDMENT WHICH WOULD -- AND
           HOPEFULLY ANOTHER AMENDMENT WHICH WOULD GIVE BLUE OFF COLLAR
           WORKERS THE SAME TAX TREATMENT GENERAL MOTORS HAS IN BUYING
           HEALTH INSURANCE. BUT WE WILL GET AN OPPORTUNITY TO VOTE ON
           THOSE ISSUES. LET ME ALSO SAY THAT IN TRAVELING AROUND MY STATE
           FOR EIGHT DAYS AND MEETING WITH EDITORIAL BOARDS, PUBLIC

           MEETINGS, AND ON SEVERAL OCCASIONS RAISING THE TOBACCO ISSUE, I
           RECEIVED NOT A QUESTION ABOUT THE TOBACCO BILL BILL. WE'RE
           DEBATING THIS ISSUE AS IF THIS IS THE ALL-CONSUMING ISSUE ON
           THE PLANET, AND YET ALL OVER THE STATE IN MEETING AFTER
           MEETING, IN EDITORIAL BOARDS WHERE I RAISED THE ISSUE ISSUE, I
           DON'T RECALL A SINGLE QUESTION ANYONE ASKED ME ABOUT IT. IN
           FACT, WE HAVE HAD TWO POLLS COME OUT SINCE WE'VE BEEN

           CONSIDERING THIS BILL. ONE "USA TODAY" ASKED PEEL, DO YOU
           BELIEVE HIGHER CIGARETTE TAXES WILL REDUCE TEEN
{END: 1998/06/01 TIME: 15-15 , Mon.  105TH SENATE, SECOND SESSION}