Tobacco Companies Defeat Efforts to Provide Health Insurance for Children

A ballot initiative in Oregon was defeated on Tuesday which would have raised the cigarette tax to help pay for health care for uninsured children. This demonstrates, yet again, the power that big business has over the legislative process. Phillip Morris and R.J. Reynolds poured $12 million dollars into their efforts. This is equal to $3.33 for each Oregon resident, or $24 per vote. RJR sponsored advertisements under the guise of "Oregonians Against The Blank Check." RJR and Phillip Morris were against the initiative largely because the increase in cigarette tax would decrease the number of children who would start smoking. Studies show that a 10% increase in the price of cigarettes reduces youth smoking by 7% and overall smoking by 4%.

The health groups fighting for the bill could only spend about a quarter of that amount.