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crat, who is a longtime industry TOBACCO foe. By Samuel Goldreich "Should we reduce this process THE WASHINGTON TIMES to one of let's make a deal, or Tobacco- From page B8 Several legal experts yesterday ad- should we do what we believe is vised a Senate panel against imposing Ogden told the Senate panel that right for the public health of Amer- sweeping advertising restrictions on the administration would prefer no ica, whether the tobacco industry tobacco companies, saying restraints limits on the right to sue tobacco likes it or not?" he asked. would violate free speech. makers, repeating earlier White He said it would be "foolish to Liability The issue has become central to House statements. But he added make concessions to the tobacco prospects for legislation based on the that Mr. Clinton would accept giv- industry," when Congress could $368.5 billion deal tobacco firms ing the industry. the legal protec- pass legislation banning most ad- reached last June with a group of attor- tions it seeks, if that was necessary vertising on the grounds that it is neys general who sued to recover the to pass comprehensive tobacco aimed at children. costs of treating smoking-related ill- legislation. But Martin Redish, a North- "Reasonable provisions modify- western University School of Law nesses. "I would urge both this committee ing the civil liability of the tobacco professor argued that shutting and the Congress not to start down a industry would not be a deal- down tobacco industry advertising Panel warned on tobacco ad restrictions path so obviously fraught with avoid- breaker," Mr. Ogden said. would stifle one side of a national But the difficulty of building po- debate on "personal lifestyle able First Amendment land mines," at- litical support to help tobacco choices and social good." torney Floyd Abrams, who has argued makers was underscored by Sen- "Nothing could be further from many Supreme Court free-speech ate Judiciary Committee member the premises of the First Amend- cases, told the Senate Judiciary Com- Richard Durbin, Illinois Demo- ment," he said. mittee. He said Congress should consider Mr. Roth's version of the Cover- passing a bill similar to one introduced by Senate Judiciary Chairman Orrin G. Parents dell bill would increase the annual contribution limit to $2,000. It Hatch, Utah Republican, who proposes a series of court-enforced consent de- would also allow tax- and penalty- crees spelling out unacceptable to- free withdrawals for elementary bacco, industry marketing practices. and secondary school expenses. Mr. Hatch also would grant tobacco may get Debate over the legislation and makers the protection they seek the Finance Committee's markup against class-action lawsuits and puni- of the bill are just a measure of the tive damages under the attorneys gen- the continuing onrush of anti-tobacco break on difficulties tax reform faces in up- eral settlement. Without such limits, coming months, said Sen. Don Nickles, Oklahoma Republican. "It's going to be very difficult lawsuits could bankrupt the industry, this year to get passed and signed he said. "The civil liability provisions are schools into law any tax bill," Mr. Nickles said. Last year each side could also needed to prevent a race to the force concessions from the other. courthouse for settling pending and fu- This year that's not the case. ture lawsuits for the relatively limited Bill would expand Mr. Roth had hoped to garner tobacco company assets," Mr. Hatch Democratic support for the mea- said. sure by adding provisions with bi- GOP leaders are awaiting clear sig- education IRAs partisan support. He also tried to nals from the White House on this issue broker a deal on a provision that today, when Vice President Al Gore is would have provided tax incen- scheduled to join a group of Democrats By John Godfrey tives for the construction of ele- proposing tobacco control legislation. THE WASHINGTON TIMES mentary and secondary schools. The bill, drafted by a task force led by His offer won over Sen. Carol Sen. Kent Conrad, North Dakota The Senate Finance Committee, Moseley-Braun, Illinois Demo Democrat, would boost taxes on ciga- on a nearly party-line vote, ap- crat, but cost him support from rettes by $1.50 per pack and impose proved legislation yesterday that several Republicans and even tough advertising and marketing re- would allow people to pay elemen- some conservative Democrats. tary and secondary school ex- Mr. Roth spent the morning try- strictions without granting tobacco penses with money from tax- ing to rework an agreement. makers the liability protection they say shielded savings accounts. "The committee remains deeply is crucial to a national settlement. The legislation, which passed 11 divided," Sen. Daniel Patrick White House Press Secretary Mike to 8, would also increase the Moynihan of New York, the highest McCurry said that Mr. Gore would of- amount people could put each year ranking Democrat on the commit- fer support to the bill because it re- in these types of accounts. tee, said. flects President Clinton's tobacco- Similar legislation has passed In the end, Mr. Roth inserted a control priorities. the House. Senate aides say the more modest proposal to help The president has laid out minimum measure will be brought to the schools float bonds and gained requirements for its support, including floor for a vote in March. only two of nine Democrats' votes. a boost in cigarette prices to discour- Treasury Secretary Robert E. Asked whether he would con- age teen-age smokers, preservation of Rubin and Education Secretary tinue to work for a bipartisan bill. federal tobacco regulation, a ban on Richard W. Riley have already rec- Mr. Roth said: "I made a good faith marketing that targets children and ommended a veto. effort. My goal is still there to work programs to fight nicotine addiction. "The bill disproportionately with the full committee." Justice Department attorney David benefits the most affluent families and provides little benefit to lower see TOBACCO, page B12 and middle-income families," the two wrote in a letter Monday to Senate Finance Committee Chair- man William V. Roth Jr., Delaware Republican. According to the Treasury De- partment, 75 percent of the tax benefit would go to the top 20 per- cent of income earners. Mr. Roth and the bill's original author, Sen. Paul Coverdell, Geor- gia Republican, call their proposal a double win - it encourages sav- ings and gives students an alterna- tive to public schools. Last year's tax act created so- called Education IRAs into which people can contribute as much as $500 a year in after-tax dollars. In- terest in the accounts accumulates tax free, and tax- and penalty-free withdrawals can be made for college-related expenses. The Washington Times WEDNESDAY, FEBRUARY 11, 1998

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    "ocrText": "crat, who is a longtime industry\nTOBACCO\nfoe.\nBy Samuel Goldreich\n\"Should we reduce this process\nTHE WASHINGTON TIMES\nto one of let's make a deal, or\nTobacco-\nFrom page B8\nSeveral legal experts yesterday ad-\nshould we do what we believe is\nvised a Senate panel against imposing\nOgden told the Senate panel that\nright for the public health of Amer-\nsweeping advertising restrictions on\nthe administration would prefer no\nica, whether the tobacco industry\ntobacco companies, saying restraints\nlimits on the right to sue tobacco\nlikes it or not?\" he asked.\nwould violate free speech.\nmakers, repeating earlier White\nHe said it would be \"foolish to\nLiability\nThe issue has become central to\nHouse statements. But he added\nmake concessions to the tobacco\nprospects for legislation based on the\nthat Mr. Clinton would accept giv-\nindustry,\" when Congress could\n$368.5 billion deal tobacco firms\ning the industry. the legal protec-\npass legislation banning most ad-\nreached last June with a group of attor-\ntions it seeks, if that was necessary\nvertising on the grounds that it is\nneys general who sued to recover the\nto pass comprehensive tobacco\naimed at children.\ncosts of treating smoking-related ill-\nlegislation.\nBut Martin Redish, a North-\n\"Reasonable provisions modify-\nwestern University School of Law\nnesses.\n\"I would urge both this committee\ning the civil liability of the tobacco\nprofessor argued that shutting\nand the Congress not to start down a\nindustry would not be a deal-\ndown tobacco industry advertising\nPanel warned on tobacco ad restrictions\npath so obviously fraught with avoid-\nbreaker,\" Mr. Ogden said.\nwould stifle one side of a national\nBut the difficulty of building po-\ndebate on \"personal lifestyle\nable First Amendment land mines,\" at-\nlitical support to help tobacco\nchoices and social good.\"\ntorney Floyd Abrams, who has argued\nmakers was underscored by Sen-\n\"Nothing could be further from\nmany Supreme Court free-speech\nate Judiciary Committee member\nthe premises of the First Amend-\ncases, told the Senate Judiciary Com-\nRichard Durbin, Illinois Demo-\nment,\" he said.\nmittee.\nHe said Congress should consider\nMr. Roth's version of the Cover-\npassing a bill similar to one introduced\nby Senate Judiciary Chairman Orrin G.\nParents\ndell bill would increase the annual\ncontribution limit to $2,000. It\nHatch, Utah Republican, who proposes\na series of court-enforced consent de-\nwould also allow tax- and penalty-\ncrees spelling out unacceptable to-\nfree withdrawals for elementary\nbacco, industry marketing practices.\nand secondary school expenses.\nMr. Hatch also would grant tobacco\nmay get\nDebate over the legislation and\nmakers the protection they seek\nthe Finance Committee's markup\nagainst class-action lawsuits and puni-\nof the bill are just a measure of the\ntive damages under the attorneys gen-\nthe continuing onrush of anti-tobacco\nbreak on\ndifficulties tax reform faces in up-\neral settlement. Without such limits,\ncoming months, said Sen. Don\nNickles, Oklahoma Republican.\n\"It's going to be very difficult\nlawsuits could bankrupt the industry,\nthis year to get passed and signed\nhe said.\n\"The civil liability provisions are\nschools\ninto law any tax bill,\" Mr. Nickles\nsaid. Last year each side could\nalso needed to prevent a race to the\nforce concessions from the other.\ncourthouse for settling pending and fu-\nThis year that's not the case.\nture lawsuits for the relatively limited\nBill would expand\nMr. Roth had hoped to garner\ntobacco company assets,\" Mr. Hatch\nDemocratic support for the mea-\nsaid.\nsure by adding provisions with bi-\nGOP leaders are awaiting clear sig-\neducation IRAs\npartisan support. He also tried to\nnals from the White House on this issue\nbroker a deal on a provision that\ntoday, when Vice President Al Gore is\nwould have provided tax incen-\nscheduled to join a group of Democrats\nBy John Godfrey\ntives for the construction of ele-\nproposing tobacco control legislation.\nTHE WASHINGTON TIMES\nmentary and secondary schools.\nThe bill, drafted by a task force led by\nHis offer won over Sen. Carol\nSen. Kent Conrad, North Dakota\nThe Senate Finance Committee,\nMoseley-Braun, Illinois Demo\nDemocrat, would boost taxes on ciga-\non a nearly party-line vote, ap-\ncrat, but cost him support from\nrettes by $1.50 per pack and impose\nproved legislation yesterday that\nseveral Republicans and even\ntough advertising and marketing re-\nwould allow people to pay elemen-\nsome conservative Democrats.\ntary and secondary school ex-\nMr. Roth spent the morning try-\nstrictions without granting tobacco\npenses with money from tax-\ning to rework an agreement.\nmakers the liability protection they say\nshielded savings accounts.\n\"The committee remains deeply\nis crucial to a national settlement.\nThe legislation, which passed 11\ndivided,\" Sen. Daniel Patrick\nWhite House Press Secretary Mike\nto 8, would also increase the\nMoynihan of New York, the highest\nMcCurry said that Mr. Gore would of-\namount people could put each year\nranking Democrat on the commit-\nfer support to the bill because it re-\nin these types of accounts.\ntee, said.\nflects President Clinton's tobacco-\nSimilar legislation has passed\nIn the end, Mr. Roth inserted a\ncontrol priorities.\nthe House. Senate aides say the\nmore modest proposal to help\nThe president has laid out minimum\nmeasure will be brought to the\nschools float bonds and gained\nrequirements for its support, including\nfloor for a vote in March.\nonly two of nine Democrats' votes.\na boost in cigarette prices to discour-\nTreasury Secretary Robert E.\nAsked whether he would con-\nage teen-age smokers, preservation of\nRubin and Education Secretary\ntinue to work for a bipartisan bill.\nfederal tobacco regulation, a ban on\nRichard W. Riley have already rec-\nMr. Roth said: \"I made a good faith\nmarketing that targets children and\nommended a veto.\neffort. My goal is still there to work\nprograms to fight nicotine addiction.\n\"The bill disproportionately\nwith the full committee.\"\nJustice Department attorney David\nbenefits the most affluent families\nand provides little benefit to lower\nsee TOBACCO, page B12\nand middle-income families,\" the\ntwo wrote in a letter Monday to\nSenate Finance Committee Chair-\nman William V. Roth Jr., Delaware\nRepublican.\nAccording to the Treasury De-\npartment, 75 percent of the tax\nbenefit would go to the top 20 per-\ncent of income earners.\nMr. Roth and the bill's original\nauthor, Sen. Paul Coverdell, Geor-\ngia Republican, call their proposal\na double win - it encourages sav-\nings and gives students an alterna-\ntive to public schools.\nLast year's tax act created so-\ncalled Education IRAs into which\npeople can contribute as much as\n$500 a year in after-tax dollars. In-\nterest in the accounts accumulates\ntax free, and tax- and penalty-free\nwithdrawals can be made for\ncollege-related expenses.\nThe Washington Times\nWEDNESDAY, FEBRUARY 11, 1998"
}