Clinton - Raise Cigarette Tax / Impose Fines
Dateline: 02/04/2000
Along with new regulations on gun dealers, President Clinton on Friday (2/4/2000) proposed a 25-cents per pack increase in the federal cigarette tax and a plan to fine tobacco companies that fail to take steps to control smoking by under-age Americans.
Both measures will be part of the President's FY 2001 Federal Budget proposal to be sent to Congress next week.
Last June, Congress voted down an anti-smoking bill and rejected President Clinton's request for a 55-cents per pack tax increase.
According to a statement issued by the White House, Every year, more than 400,000 Americans die from tobacco-related diseases. Nearly 90 percent of them started smoking as children."
With the current total price of a pack of cigarettes approaching $4 in some states, the White House hopes, "This increase will help reduce youth smoking and help achieve the administration's goal of cutting youth smoking in half."
Similar tax hikes will be proposed for other tobacco products, as well.
President Clinton's budget will also propose a $3,000 fine against cigarette makers for every smoker under age 18 if underage smoking is not reduced 50 percent by 2004 and allocate $39 million to help the FDA enforce underage smoking laws.
Reference Resources
Clinton Sends
Record Budget to Congress
President Clinton's fiscal year 2001 Federal Budget proposal to be sent to
Congress today proposes a record spending request level of $1.83 trillion
dollars.
Text
of Statement by President Clinton
As published by the White House 2/4/2000.
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