Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, January 27, 1994 TAG: 9401270038
SECTION: NATIONAL/INTERNATIONAL PAGE: A4 EDITION: NEW RIVER VALLEY
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
"Don't Take Away Our Livelihood" and "No More Taxes on Tobacco," read the hand-printed signs carried by farmers, tobacco land owners, cigarette workers and retirees from 10 states at a rally outside the Capitol.
"This is called a sin tax," said Rep. L.F. Payne, D-Nelson County. "But I didn't see the president in Hollywood calling for a tax on R-rated movies. You want to talk about sin!"
Clinton's plan would raise $65 billion over six years for his estimated $390 billion health care package by increasing tobacco taxes. It is the largest single tax increase proposed to fund the proposal. The federal tax on a pack of cigarettes would jump from 24 to 99 cents a pack.
Residents of states where tobacco-related work supports a big portion of the population fear a tax increase would cut deeply into demand for cigarettes and cause big losses in family income.
Cigarette factories already are laying off workers and the price of tobacco has been going down because of decreased demand, said protesters blaming current taxes.
"We need medical reform, but not on the backs of the tobacco farmers," said Rep. Tom Barlow, D-Ky.
"There wouldn't even be hospitals in some parts of North Carolina if it hadn't been for the tobacco companies," said Rex Paschal, who farms 15 acres of tobacco and whose wife, Bernice, works for the American Tobacco Co. in Reidsville, N.C.
Paschal arrived at the rally with six busloads of Reidsville residents. Demonstrators also came from other parts of North Carolina, South Carolina, Virginia, Georgia, Maryland, Tennessee, Ohio, Florida, Kentucky and Missouri.
"Why not tax alcohol, gasoline, entertainment and other luxuries?" said Pat James of Greenville, N.C. "It's not right that we should bear the whole burden."
by CNB