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Company Press Release

Americans Do Not Support Congressional Action on McCain Legislation, According to a New Survey

Current Proposal Seen as Not Likely to Reduce the Levels of Youth Smoking

WASHINGTON, May 11 /PRNewswire/ -- A just-completed survey by The Tarrance Group and KRC Research reveals that Americans today are not supportive of the main legislative initiative now before Congress -- the McCain bill -- regarding tobacco.

Fully 50% of the American public does not think legislation authored by Sen. John McCain should be passed when they learn that it would impose a $2.50 a pack increase on the price of cigarettes, whereas 40% feel the legislation should be passed. Even when told that the legislation would impose a $1.10 tax on cigarettes, the amount cited by supporters of the McCain legislation, a plurality of American adults, by a margin of 47% to 45%, thinks the McCain bill should not be passed.

``As the public receives more information about the bill,'' said The Tarrance Group's Ed Goeas, ``their support for the legislation falls.''

Several of the major provisions contained in tobacco legislation authored by Senator McCain would influence significant majorities of the adult population in this country to be less supportive of the landmark legislation. The three provisions Americans have the biggest concerns about include:

• The fact that the bill could give rise to a black market for cigarettes which could undermine the efforts to reduce youth smoking (this makes 27% of the people more likely to support the legislation and 51% less likely to support it);
• The fact that the legislation would affect nearly 2 million American jobs (23% more likely & 56% less likely to support); and
• The fact that the bill would almost certainly create more government bureaucracies (23% more likely & 57% less likely to support).

The American public has other distinct problems with the tobacco legislation now under consideration, as a majority of Americans express concern about the following provisions:

• More than seven-in-ten Americans agree with the statement that the bill is not likely to actually reduce the levels of youth smoking (73% agree);
• About two-thirds of Americans also agree that the McCain legislation shows that this is once again about Washington turning a reasoned debate about tobacco into a grab for new taxes (65% agree); and
• Over sixty percent agree with statements that the bill is more about punishing tobacco companies than it is about reducing youth smoking (63% agree).

Commenting on these figures, Steve Lombardo of KRC Research, said: ``The fact that such a strong majority of Americans feel that Washingrton wants the money, but the bill is not likely to actually reduce the levels of youth smoking, is problematic for Congress.''

This survey also finds that adults are least likely to blame tobacco companies and their advertising for being most responsible for making young people take up smoking. Peer pressure dominates the list of reasons as to why adults believe young people begin to smoke (58%). This response is followed by the example set by parents (18%); Hollywood, television & popular culture (12%); and then the tobacco industry and their advertising (6%). Even parents with young children are least likely to point the blame at tobacco companies and their advertising.

Other findings reveal that nearly two-thirds (64%) of American adults indicate they have seen, read, or heard something about the legislation drafted by U.S. Senator John McCain.

Copies of the survey are available from KRC Research at 202-739-0299.

The results cited in this release are drawn from telephone interviews with N=1,507 adults 21+ throughout the U.S.; the margin of error for a sample of this type is plus/minus 2.5%. Responses were gathered May 5-7, 1998. This survey is a joint project conducted by The Tarrance Group, Inc. and KRC Research on behalf of the following companies -- Brown & Williamson Tobacco Corporation, Lorillard Tobacco Company, Phillip Morris Incorporated, R.J. Reynolds Tobacco Company, and United States Tobacco Company.

SOURCE: The Tarrance Group; KRC Research