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05/20/98 WED 19:12 FAX 202 6222633 5 002 Memo To: Bruce Reed From: Jon Gruber Re: New Lookback Structure Compared to S. 1415 and Regressivity Here are two charts comparing the current S. 1415 lookback structure to what you said is being considered by the Democrats as an alternative. These figures focus on monthly smoking. Note that for large misses (50-60) percent the lost profits/kid are actually quite similar for the two structures, since the cap on the proposed alternative binds so early. I also include the talking points on regressivity that we are going to pass to Dems on the Hill, as we discussed earlier.