Tonight I spent a few hours with some friends. While I participated in their conversation (I think) the truth is that I just couldn't stop thinking about the SCHIP veto. Why? Why? Why? Bush's veto hands Democratic opponents another issue. By Bush's standards, SCHIP expansion doesn't cost that much more. Purportedly the insurance companies and Big Pharma are on board and didn't oppose SCHIP. All day long I've been wondering...who got to Bush?
Then, a few hours ago, it hit me like a ton of bricks...the Tobacco Companies!
Now, this is so obvious that I suspect everyone else knew it. But honest to God, I haven't read it anywhere or heard anybody talking about it. But it has to be the Tobacco Companies. And possibly they got the band back together.
You ask, what band? Well, over past years I've watched with great interest whenever an increase in tobacco taxes or excise taxes is proposed. These so-called sin taxes immediately attract a coalition that works hard to defeat the increase. The breweries and beer distributors, the tobacco companies and the convenience stores band together and exercise their considerable clout to defeat these proposals.
Years ago I was naive. I asked a representative from a large brewer why they cared about additional excise taxes--after all, an excise tax doesn't hurt their competitive position because it applies to everyone. The explanation is that their customers have a certain amount of money that they will spend for beer--and they have a certain price point that they will stay below. The excise taxes push beer above these maximum price points. Sales decline.
The same principle apparently applies to cigarettes. Smokers are already bombarded with messages telling them to quit. Increasing prices accelerates the quit rate. Sales decline.
Why do they get involved with each others' legislative fights? Both sides have found that they are more successful when they make arguments that so-called sin-taxes are regressive and have a disproportionate effect on poor people. They combine their lobbying clout and fend these taxes off.
I read today that Congressman Roy Blunt weighed in with some silliness about disparities among the states. I looked for the article so I could link it here but he must have made MSNBC take it down because it made him look like such a tool. But then I remembered something else.
In 2003, Rep. Roy Blunt divorced his wife of 30+ years and married Phillip Morris lobbyist Abigail Perlman.
Remember this?
In 2002, Blunt attempted to insert a provision, in support of tobacco corporations, into the legislation that created the Department of Homeland Security. The "rider" would have made tobacco sales over the Internet more difficult, allowing tobacco companies to control distribution. At the time, Blunt was dating Altria (formerly known as Philip Morris) lobbyist Abigail Perlman, whom he later married. The rider had not been cleared by the House leadership. It was removed from the final bill by agreement between Blunt's staff and the Speaker's staff. The same basic provision was later adopted by the Senate and became law, restricting the ability of criminals and terrorists to use black market Internet sales of tobacco to underwrite illegal or nefarious activity.
I suspect that most of you had already figured this out. You're shaking your heads and saying "Well, St. Louis Woman finally caught up to the rest of us." I must tell you that while I am thoroughly disgusted with all of these Republican bastards, it's almost a relief to figure out why Bush vetoed this bill. It's his usual reason. Corporate greed.