Why Congress Must Boot the Big Tobacco Bailout



(a) In General.–Subsection (d) of section 5702 of the Internal Revenue Code of 1986 is amended by adding at the end the following new flush sentence:

“Such term shall include any person who for commercial purposes makes available for consumer use (including such consumer’s personal consumption or use under paragraph (1)) a machine capable of making cigarettes, cigars, or other tobacco products. A person making such a machine available for consumer use shall be deemed the person making the removal as defined by subsection (j) with respect to any tobacco products manufactured by such machine.”.


Sen. Max Baucus (D-Montana) and President Obama. Sen. Baucus wants to ensure the Big Tobacco companies that have given him THOUSANDS of dollars have a complete monopoly.

If you’re a member of Congress, or work for a member of Congress, the above provision is the “Big Tobacco bailout” and we want it stripped from the highway bill because:

  • The Congressional Budget Office says it will result in the closure of >1,000 small businesses;
  • Reclassifying “retailers” as “manufacturers” for no other reason than to shut down retail tobacco locations is bad government;
  • Giving Big Tobacco companies a monopoly on cigarette sales vs. the 99% market they have currently is anti-competitive; and
  • It takes away our freedom to roll our own smokes.

Update, update, who has the update?

Right now, there are people gathered around a table in a room somewhere in the complex of the U.S. Capitol, and they’re talking to each other about the highway bill. Specifically, they’re talking about the two versions of the highway bill, the House bill and the Senate bill. They’ve been working for weeks comparing the two bills and thinking privately about what absolutely must stay, and what can go. In the Senate version is a provision U.S. Senator Max Baucus attached in a middle-of-the-night maneuver that seeks to reclassify retail tobacco shops as “tobacco manufacturers” and tax and regulate the bejeezus out of them, forcing them to close and thus eliminating Big Tobacco’s minuscule competition. No doubt when that provision is discussed, there will be an intense fight by Big Tobacco lobbyists to keep it in.

Good morning, it’s Sunday, June 24, 2012. Talks continue today among the staff of U.S. House and Senate negotiators working out a transportation authorization bill (the highway bill) and people are keeping mum about what’s going to be in the final package until they’re ready to release it to the public. When we hear, we will share with you. Until we know for certain, we must keep up the noise, the pressure, the level of engagement required to get in front of the decision-makers.

According to the Associated Press:

“…the two sides were also close to an agreement to overhaul federal transportation programs, according to House and Senate aides from both parties. Negotiations were expected to continue through the weekend, with votes expected next week on either a major transportation bill or an extension of current programs, said the aides, who spoke on condition of anonymity to discuss details of the talks.”

SO… WHILE members of Congress are deciding the fate of our freedom to roll our own smokes, let’s help decide the fate of whether our local members of Congress will have our support when they run for re-election. Every member of the House of Representatives is up for re-election this year and the power we hold over our elected representatives is our power to vote. Further, we can influence others and how they might vote. If a politician senses he is losing votes, especially from the very base of people who should be supporting him, then he’ll likely change his behavior.

TODAY’S MESSAGE: @LawmakerXYZ MAKE NO DEAL unless the Baucus #BigTobacco bailout in the highway bill is stripped! http://bit.ly/NewTax

Be loud, be alert, bring your “A” game and let’s be seen and heard online! 

– GR

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One thought on “Why Congress Must Boot the Big Tobacco Bailout

  1. Richard Moreland says:

    t’s not too late! Call the White House Comment Line @ 202-456-1111. Ask them to remove clause 100122 from the Highway Bill and explain how this is going to put thousands of people out of a job. Rolling your own is not only a better option for smokers, its also a constitutional right. Our store alone has gotten 63 people to stop smoking and 100% of our customers have slowed way down in the year we have been opened. The owner and most of our employees are nonsmokers. Our number one goal is too help people. Our cartons are half the price of factory cigarettes and they are 100% chemical free. What we are doing is a good thing, and they are trying to take that right away from us. Obama signs the bill Friday, we still have hope.

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