John Ashcroft

Mr. ASHCROFT

Mr. ASHCROFT. I am.

Mr. ASHCROFT. I am pleased to be aware of it.

Mr. ASHCROFT. It is a vast presumption, and it is a dangerous presumption.

Mr. ASHCROFT. I will yield.

Mr. ASHCROFT. There isn't any proof.

Mr. ASHCROFT. That is correct.

Mr. ASHCROFT. I yield to the Senator from Utah for a question.

Mr. ASHCROFT. I am aware of the poll and I am aware of the concern. And I believe that is correct. I believe Americans are far more fearful that their children will be involved with illicit drugs than they are that their children might experiment with smoking.

Mr. ASHCROFT. I am concerned about that.

Mr. ASHCROFT. I continue to yield for a question.

Mr. ASHCROFT. I think the price these analysts have indicated is $4.68. You first tack on the $1.10 tax. Then you add all the other costs in this bill that will most likely be passed on to consumers. Then the look-back penalties capped at $3 billion a year have to be added. The liability of $8 billion a year capped has to be added. In the analysis, it was assumed only 20 percent of this will have to be paid out every year. However, due to changes in the bill, and no doubt on behalf of the trial lawyers, I think 100 percent of the $8 billion will be paid out every year. It is clear to me that you have a very serious price increase. And the suggestion that it is $1.10 or $1.50 is very, very conservative. The truth of the matter is it is likely to be 2 to 3 times that much.

Mr. ASHCROFT. There is some data on that. Some analysts have predicted that the price per pack would be much more than the $1.10 increase by the time you work it through the system. They have estimated that the increase will be $2.78 a pack.

Mr. ASHCROFT. With the understanding that I reacquire the floor at the conclusion of the question, I would be happy to yield.

Mr. ASHCROFT. I am aware of that. I think the American people have a pretty clear understanding of what the most serious long-term threats are, and they rank those appropriately. I think it would be a tragedy if we were to, out of good intentions, do something which resulted in a black market and promoted drug use and smoking on the part of teenagers rather than curtailing both of those.

Mr. ASHCROFT. If cigarettes sold illegally become commonplace, it might well be that people will have greater access to an array of contraband items--``Here, you can either buy cigarettes from me, or you can buy marijuana from me, or you can buy drugs from me.'' I am aware of that potential. I answer the question of the Senator from Texas by saying I am not only aware of it, but I am deeply concerned about it because drugs are a serious threat. They, in many respects, are far more serious than the threat of cigarettes.

Mr. ASHCROFT. I am aware of that, and I think it reinforces the point that the Canadian Health Minister was making, that there are times when an increase in the price increases the interest of youngsters in smoking.

Mr. ASHCROFT. I am aware of that, and I think it is a very important point.

Mr. ASHCROFT. I was not aware of that, but I am happy to have the Senator point it out.

Mr. ASHCROFT. I will be happy to yield to the Senator from Texas for a question.

Mr. ASHCROFT. I reclaim the floor.

Mr. ASHCROFT. I would be happy to yield for a question.

Mr. ASHCROFT. I am aware of that.

Mr. ASHCROFT. I am.

Mr. ASHCROFT. I am aware of that. I think we invite a disaster in terms of black marketing and in all kinds of legal violations. We are going to be introducing young people to illegal ways of transacting business on the black market. We are going to be introducing young people to segments of society they should not be associating with.

Mr. ASHCROFT. I have to look at my own experience as Governor. We even had problems with smuggling from neighboring States that had low tobacco taxes. Contraband is already a big problem in tobacco.