by John M. Curtis
(310) 204-8700

Copyright August 7, 2001
All Rights Reserved.

ike a nasty old habit, Philip Morris, the world’s biggest cigarette maker, flashed its cards in the Czech Republic, congratulating itself for causing more that 22,000 annual deaths from smoking, saving the government more than $30 million. Boasting about how smoking reduced the lifespans of Czech citizens by 5.23 years, the tobacco behemoth delivered the ‘good news’ via a special report to Czech Prime Minister Milos Zeman, a chain smoker with a yen for Marlboros. “As a smoker, I support the state budget because in the Czech Republic we pay tax on tobacco,” admitted Zeman, revealing his government’s symbiotic attachment to sin taxes. Tipping his hand, “Also, smokers die sooner, and the state does not need to look after them in their old age.” Getting a free X-ray into his government’s motives, Zeman’s faux pas stretched political correctness to the breaking point. No matter how backward Eastern Europe, governments know the health hazards associated with tobacco. Can you imagine the World Health Organization [WHO] pushing AIDS to manage population growth?

       Rarely do governments admit their true intentions of exploiting hapless taxpayers: Siphoning off every penny, then encouraging behavior known to shorten lives. It’s almost inconceivable that tobacco executives have the chutzpah to actually pitch foreign leaders with how their toxic products save governments money. With the latest revelation, we now have proof that it’s really going on. AIDS and radioactivity also shorten lives, but publicly traded corporations don’t peddle viruses or plutonium. It wasn’t too long ago that tobacco companies denied their products caused cancer and heart disease. Changing their tune, Philip Morris now touts the disease- and death-causing benefits of their products. Stretching Zeman’s admission, we can now see the reluctance of Western Europe to get with anti-smoking programs. Unlike the U.S., anti-smoking programs have been slow to catch on in Great Britain and the continent. Like the great autocracies and monarchies of the past, today’s governments have no intention of forfeiting sin taxes.

       Governments, past and present, confront the proverbial dilemma of self-perpetuation, usually accomplished by feeding off its own citizens through taxation. “The federal government doesn’t make money, it just takes it, from the people,” said a feisty Ronald Reagan leading his anti-tax crusade all the way to the White House in 1980. Without profiting from other commodities, governments have no way other than taxation to survive. Alcohol and tobacco producers have enjoyed a rich history of lining the government’s pockets, providing an unending revenue stream. While today’s anti-tobacco campaigns seem sincere, governments don’t like choking off lucrative tax sources. Suing tobacco companies makes good headlines, but doesn’t erase the government’s role in promoting alcohol and tobacco use. Violating the rules of political correctness, Zeman invited Americans to examine their government’s real role in fighting big tobacco. Calling Philip Morris’ report “monstrous” and “extremely nasty,” the leading Czech newspaper Milada Fronta Dnes noted in a commentary that, “in the United States they would not even dare say anything like that even under a blanket.”

       According to Czech government reports, about 25% of the 10 million population smokes, consuming about 20 billion cigarettes annually—no shabby figure when you consider that anti-smoking campaigns have been around since the 1970s. Combating adverse publicity, Philip Morris commissioned the consulting firm Arthur D. Little International to emphasize the financial benefits of tobacco on government revenue. Accounting for health-related expenditures, the report concluded that the Czech Republic netted a whopping $151 million from tobacco sales and savings in government outlays in 1999. “Fantastic business proposal: Let’s get together and profit from the death of citizens of your country. We shall kill them, and you will free our hands. Profit for both guaranteed,” said the acerbic commentary in Milada Fronta Dnes newspaper, underscoring the ruthless manner in which Philip Morris marketed its products to the Czech’s youth population. Giving the tobacco giant another black eye, their PR team leapt into action with a shallow disclaimer. Sounding Orwellian, “No one benefits from the very real, serious and significant diseases caused by smoking,” flip-flopping from the industry’s perennial denials about tobacco’s health risks.

       Opening up a can of worms, the Arthur D. Little International report was no fluke. Despite all the grandstanding against big tobacco, the U.S. government too rakes in incalculable sums of cash from tobacco sales. Tobacco farming harks back to the inception of the 13 colonies, where immigrant growers were thrilled to escape the brutal taxes imposed by England’s King George. While escaping England’s punitive taxes, the early colonies recognized that King George got it right generating taxes from tobacco sales, providing the money needed to subsidize a fledgling government. Despite warning labels and high profile legal settlements, the U.S. still earns its keep off the tobacco industry. What easier way can the government profit than off the weaknesses of taxpayers? “Philip Morris’ apology . . . can only be viewed as a cynical act of damage control unless the company also supports real change to reduce the deadly toll of tobacco,” said Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, once again fingering the Marlboro man. But Myers also needs to recognize the government’s part as well.

       Earning a living off sin taxes, all governments depend on revenue from alcohol and tobacco. Finally copping to tobacco’s health risks, the tobacco industry owned a small part of the liability associated with their products. Rarely do governments, like the Czech Republic, admit their dependency on taxes from dangerous substances like tobacco and alcohol. Arthur D. Little International’s shameless report gives a free peepshow into the kinds of cynical calculations made by governments whose primary revenue comes from taxation. “No responsible corporate entity would produce a report that basically brags about the benefits of killing its customers,” said Vince Willmore, communications director for the Campaign for Tobacco-Free Kids, failing to heed the government’s disguised role in promoting tobacco use. “No state,” said Pavel Tautermann writing in Lidove Noviny newspaper, “will give up an instrument which reliably kills people in the post-productive years,” echoing the views of Czech Prime Minister’s Milos Zamen’s. Blaming only the tobacco industry turns a blind eye on government’s own mischief.

About the Author

John M. Curtis is editor of OnlineColumnist.com and columnist for the Los Angeles Daily Journal. He’s director of a Los Angeles think tank specializing in political consulting and strategic public relations. He’s the author of Dodging The Bullet and Operation Charisma.

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