PRESIDENT TOUTS CIGARETTE TAX HIKE

$1.10 A Pack Increase Could Cut Teen Smoking In Half, Clinton Says

PHILADELPHIA -- President Clinton, trying to revive a settlement with the
tobacco industry, said Friday a new study shows a hike in cigarette taxes
could cut teen smoking by half.

The president, appearing before the nation's scientists, called on Congress
to act this year to pass bipartisan legislation. He endorsed a Senate
Democratic measure as a starting point.

Clinton later resumed his effort to raise money for Democrats who have
embraced the president despite sex scandal woes.

In an address to the American Association for the Advancement of Science,
Clinton said a new Treasury Department analysis indicates a cigarette tax
increase of $1.10 a pack could stop nearly 3 million young people from
smoking by 2003 and save 1 million lives.

"For years, our efforts to reduce smoking have been outmatched by
billion-dollar industry ad campaigns targeted at our children," Clinton
said. "Now we have the opportunity to save millions of those children from
a life of addiction and a premature and very preventable death."

The administration estimates that 3,000 young people start smoking every
day and 1,000 of them will die prematurely.

If cigarette taxes increase by $1.10 per pack, making it more expensive to
youths, an estimated 2.8 million would be discouraged from smoking over
five years. The study, however, also included proposed sales and
advertising restrictions in its calculations.

"That means if we act this year -- instead of having a year-long political
debate and doing nothing -- if we act this year, by the year 2003 we can
stop almost 3 million young people from smoking and save almost 1 million
lives as a result. We ought to save those lives and you should demand that
we save those lives," Clinton told the scientists.

Last summer, the industry and state attorneys general reached an agreement
that calls for cigarette makers to remit $368.5 billion over 25 years to
state and federal governments.

It would give immunity from future punitive liability to cigarette makers
and set advertising and marketing restrictions. The settlement does not
specifically call for tax increases.

Clinton partially endorsed the settlement but called for further steps such
as increasing per pack taxes by $1.50 over 10 years, regulation by the Food
and Drug Administration, an end to marketing aimed at children and help for
tobacco farmers who would be harmed by a decrease in usage.

The president endorsed legislation offered this week by Sen. Kent Conrad,
D-N.D., whose measure would generate $500 billion over 25 years by hiking
taxes, eliminate the industry's protection from lawsuits and include
provisions outlined by Clinton.

Vice President Al Gore joined Conrad as the measure was unveiled this week.
The tobacco industry blasted the Conrad measure as a deal-breaker and
threatened to back out of its settlement agreement.

Sen. Jim Jeffords, R-Vt., chairman of the Senate Labor and Human Resources
committee, offered a measure partially addressing the settlement but not
including taxes. Republican leaders have yet to offer their proposal.

Settlement legislation has been stalled since last summer as neither
political party in Congress, nor the White House, proposed a specific measure.

Aides said the administration will not offer its proposed legislation but
instead will work with the Senate Democratic measure.

Clinton called the Conrad measure "a strong bill that meets all the
objectives I just mentioned." But he added, "I look forward to working with
him and with other members to enact comprehensive and bipartisan legislation."

Elena Kagan, deputy domestic policy adviser, said the administration wants
a comprehensive measure passed this year. "The president does not want
Congress to pass piecemeal legislation," she said.

She also said the administration was willing to negotiate on the immunity
from liability. She said Clinton would prefer a measure without immunity
for the industry but the issue "is not a deal- breaker."

The president later attended a fund-raising dinner for the Democratic
Congressional Campaign Committee. Clinton raised $300,000 for the panel,
which provides support to Democrats running for the House.

He told the crowd Democrats had a good chance of recapturing the House in
the next election.

Copyright 1998 Houston Chronicle