Unholy alliance at heart of Tobacco Act
http://www.thetimesnews.com/articles/bill-26009-morris-philip.html
The Family Smoking Prevention and Tobacco Control Act: It has such a pleasant ring to it. How could anyone stand against a bill that has "Family Smoking Prevention" in the title?
It can be difficult.
For politicians, however, the choice to vote "yea" on this bill was simple. The anti-smoking lobby demanded it, the public wants anything that will "protect the children," and even Philip-Morris, the country's largest cigarette distributor, endorsed the bill.
A "yea" vote pleased all the right people.
The U.S. House, in fact, passed the bill by a strong margin of 298-112. The Senate, 79-17. And President Obama is expected to sign it into law very soon.
But, as these things often seem to go, it is necessary to think logically, not emotionally, about laws that are meant to protect people from themselves.
Remember, Philip-Morris publicly endorsed this bill. Why would the makers of Marlboro, which controls more than half of the U.S. cigarette market, support a law that gives the Food and Drug Administration the power to regulate tobacco products? When big business gets in bed with big government there is always a motive.
Here are just two provisions in the bill that Philip-Morris may have found especially attractive:
-- The bill prohibits a cigarette or any of its components from containing as a constituent or additive any artificial or natural flavor (other than tobacco or menthol)
-- It requires FDA review of new tobacco products before they can go to market unless they are similar to products marketed before February 15, 2007.
The first condition is meant to prevent children from being lured into the world of smoking by intriguing flavors like cherry, chocolate, orange, and vanilla. Notice, however, that there is a conspicuous exception for menthol-flavored cigarettes. What? Don't children like menthol too?
The truth is that 12 million Americans, or 26 percent of smokers - and 75 percent of African American smokers - use menthol cigarettes. That is a huge percentage of the smoking population. Add to that the fact that studies have shown menthol smokers tend to be less likely to quit and you can see why that exception is included. Philip-Morris needed it and Congress needed their blessing to get the bill passed.
The second stipulation will stifle competition and kill innovation. More regulation always adds to overhead and increased costs always fall more heavily on the smaller companies.
Startup firms with a new idea will now have to put their products through a rigorous test by the FDA, costing who knows how much extra overhead. Without innovation in the marketplace it will more difficult for the smaller companies to compete with the larger, more established giants (read Philip-Morris).
This is why firms like Winston-Salem-based R.J. Reynolds - a giant, yes, but a smaller giant than Philip-Morris - opposed the legislation. It gives too much power to their biggest competitor.
Really, this is just another bill that promotes an industrial giant while increasing the government's power and the popularity of politicians.
Everybody wins, except the taxpayer, of course.
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