Van Hollen Urges Congress to Stop the $10 Billion Tax-Payer Funded Tobacco Bailout

Van Hollen Urges Congress to Stop the $10 Billion Tax-Payer Funded Tobacco Bailout

07/15/04

Washington, D.C. - Mr. Chairman, I thank the gentleman for yielding me this time.

I am pleased to join with the gentleman from Arizona (Mr. Flake), the gentleman from Texas (Mr. Doggett), the
gentleman from Pennsylvania (Mr. Platts), the gentleman from California (Mr. Waxman), and the gentleman from
Maryland (Mr. Bartlett) in offering what really is a very simple amendment. It says that none of the funds appropriated
in this agriculture bill may be used to implement the $10 billion taxpayer-funded bailout of the tobacco industry.

Less than a month ago, this House passed a bill that was filled with various special interest tax breaks. Included in that
special interest bill was a $10 billion tobacco bailout paid for entirely by taxpayers. Some call it a buyout. I call it a
sellout of the American taxpayer. And this House never had an opportunity at that time to vote on that issue. Now we
have that chance.

Just think about what we are saying to the American people. At a time when we are running huge deficits in this
country; at a time when Congress is telling schools around the country we cannot fully fund No Child Left Behind; at a time when we are not meeting the requirements of the Homeland Security Department agencies; at that very time we are asking taxpayers to foot the $10 billion bill for a tobacco bailout. Talk about misplaced priorities.

And what are the consequences of a taxpayer-funded bailout to the big tobacco companies? They are going to get cheaper tobacco; and as a result, they will reap a big windfall. According to Agriculture Department economists, they
will reap $15 billion in windfall profits over the next 14 years. In addition, economists tell us that, as a result of this
bailout action, tobacco companies will likely lower their price of tobacco products and the result will be many more
young people who get hooked on nicotine.

And what do the big tobacco companies have to do to get this taxpayer benefit? Nothing. They do not have to do
anything. They do not have to put in a nickel. They do not have to submit to any regulations by the Food and Drug Administration.

We now have before us an opportunity on a bipartisan basis to say we are not going to spend taxpayer dollars for a $10
billion bailout.

I want to make a point that I think is important to many Members. This would allow a buyout to go forward not using
taxpayer dollars. There is legislation, bipartisan legislation, that has been submitted before this House and before the
Senate that calls for a buyout of some of these interests. However, those bills require that it be funded not by the
taxpayer but by the tobacco companies. This amendment leaves open that option. It simply makes clear that we should
not fleece the taxpayer to support the tobacco industry.