SENATOR COLLINS TAKES STAND FOR MEASURE TO PROTECT CHILDREN FROM TOBACCO & AGAINST SPECIAL INTEREST TAX BREAKS

Washington, DC – Senator Susan Collins today voted against legislation to change corporate tax laws because it included a $10.1 billion bailout for tobacco farmers and does not allow federal regulation of tobacco products, including needed authority to hold the tobacco industry accountable for advertising aimed at children. Senator Collins also criticized unjustified tax breaks for special interests citing a $44 million tax break for ceiling fans exported from China as "particularly egregious." Despite the opposition of Senator Collins and Senator John McCain of Arizona, the bill passed the Senate by a vote of 69 to 17.

"This bill gives billions to the tobacco industry and does nothing to hold it responsible for targeting children in its advertising," Senator Collins said. "What started out as a balanced, worthwhile bill has turned into pork-barrel legislation larded with special interest tax breaks."

The legislation includes a $10.1 billion buyout of tobacco farmers over the next decade. But bill negotiators dropped provisions, which Senator Collins cosponsored and which were passed by the Senate, that would have given the Food and Drug Administration (FDA) the authority to regulate the sale, marketing, and advertising of tobacco products. That authority would have allowed the FDA to restrict the promotion of tobacco products, including advertising that affects children or misleads consumers, to the extent permitted under the First Amendment. The Collins-backed legislation would also have allowed the FDA to take action to ensure that tobacco products are not sold illegally to children.

"It makes no sense that the FDA requires Philip Morris to tell consumers the ingredients in its Kraft Macaroni and Cheese, but not the ingredients that are in its cigarettes," said Senator Collins. "The legislation that I supported would have given the FDA the full legal authority to review the health risks associated with tobacco products, to regulate tobacco products, and to protect children from the dangers of tobacco."

The corporate tax bill also includes numerous tax breaks that Senator Collins opposed. "This bill has too many outrageous tax breaks, including $44 million for ceiling fans manufactured in China and exported to the United States, $24 million for makers of bows and arrows, and $27 million to exempt non-resident aliens from income tax on winnings from horse and dog racing betsYet it fails to include a Senate provision that I supported, which would have given a tax credit to employers who continue to pay their employees who are in the National Guard or Reserve the difference in salary they would otherwise lose when they are called to serve on active duty."

"While I strongly support the provisions in the bill that help our manufacturers, those benefits also were weakened in the final version," Senator Collins said. "For example, the tax credit to encourage manufacturers to hire laid-off workers, which I authored, was dropped in the final negotiations. On balance, I cannot support this bill."

The bill now goes to the President for consideration.

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