Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, July 17, 1994                   TAG: 9408090127
SECTION: VIRGINIA                    PAGE: A4   EDITION: METRO  
SOURCE: ADRIENNE PETTY STAFF WRITER
DATELINE:                                 LENGTH: Medium

THE TAX PROPOSALS SO FAR

The House Ways and Means Committee recently approved its version, which includes a 45-cent increase, the smallest proposal yet.

The tax increase, to be phased in over five years, was whittled down from an earlier $1.25 proposed increase to appease lawmakers from tobacco states.

"Having a phase-in is a victory in itself - that's just as important as having a low tax," said Todd Haymore, legislative assistant for Rep. L.F. Payne, D-Nelson County. "It lessens the impact of the tax on everyone: farmers, producers and buyers."

Haymore said that lawmakers from tobacco states accept that the tax boost is inevitable, but they are a vocal minority pushing to minimize the damage.

"If there is going to be a health care reform package this year, we are convinced that there will be a tobacco tax," Haymore said.

As for the Senate, the Finance Committee has approved a $1 increase. The chairman of the Senate Finance Committee originally proposed a $1.76 increase to a flat $2 per pack.

Neither of these bills has been scheduled for consideration, but the House is expected to debate the Ways and Means bill in August, said Ellis Woodward, Payne's press secretary.

Once both bills have been considered, they will progress to conference committee, where both houses will iron out details and reach compromises.

All of the health reform bills before Congress would boost the 24-cent federal tax on a package of cigarettes.

The Clinton administration asked for a 75-cent-per-pack increase to 99 cents.

Because about a half dozen proposals exist, predicting the possible impact on domestic cigarette consumption is difficult, said Thomas Lauria of the Tobacco Institute.