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OCR Page 1 of 5003/09/98
12:52
002
Tobacco-
Harkin-
chafee
KIDS DESERVE FREEDOM FROM ORACCO ACT OF 1998
"The KIDS Act"
Principles
Congress has an historic opportunity to enact legislation this year which will significantly reduce
tobacco use - especially among children. Nearly one in five deaths in America today is attributable
to tobacco use, making it the single most preventable cause of premature death, disease and disability
facing this country. These facts compel us to act now. However, to ensure the most effective result,
legislation must embody the following principles:
It must be bipartisan and comprehensive - not piecemeal - - to ensure a fundamental and
lasting change in the way tobacco products are markcted and sold in this country.
It must attack the youth smoking epidemic as rapidly as possible by forcing the price of
cigarettes to increase by $1.50 per pack within the first two years, and providing for
comparable increases in other tobacco products.
It must preserve the rights of individuals and groups to suc tobacco manufacturers for the
damages they have caused, while at the same time establishing a manageable framework to
ensure timely payment of awards and settlements to claimants.
It must provide incentives to states, local communities, schools, research institutions, health
professionals and other stakeholders to develop innovative strategies to discourage youth
smoking, and to assist adult smokers in kicking the habit.
It must have as its primary purpose the promotion of aggressive anti-tobacco initiatives and
public health improvements, including the provision of significant new resources for medical
research.
Summary
The KIDS Deserve Freedom from Tobacco Act of 1998 ("The KIDS Act") significantly improves
upon and strengthens the June 1997 Attorneys General Tobacco Settlement Agreement ("June 1997
Tobacco Agreement"). The legislation would substantially reduce youth tobacco use through a
comprehensive set of policy changes. These include increasing the cost of tobacco products,
curtailing advertising and marketing to children, assuring appropriate industry oversight, expanding
the availability of smoking cessation programs, and implementing a strong public health prevention
and education strategy involving the private sector, schools, states and local communities.
CONOMIC CHT EMES
Price Increase. Public health experts agrec that the single most important component of a
comprehensive plan to reduce youth tobacco use is to significantly increase the price of tobacco
products. Studies have shown that for every 10% increase in price, smoking is decreased at least 4%
among adults and, more importantly, by at least 7% among children. Therefore, our proposal would
increase the price of a pack of cigarettes by $1.50 within two years ($1.00 the first year: $0.50
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