Stogie Commentary: Fighting the Good Fight

1 Oct 2007

I’ve been frustrated in recent months watching the failed efforts to combat the higher cigar taxes that are part of the proposed State Children’s Health Insurance Program (SCHIP) expansion. I have no connection to the cigar industry — other than enjoying its products — and I don’t claim to have observed everything that occurred. But I do have a little knowledge about how Congress works, and it often appeared to me that tobacco’s resistance was not as effective as it could have been.

Cigar Tax So, I thought I’d offer my suggestions for the future.

1. First, and foremost, get a godfather. The cigar industry needs someone to watch over it and take up its interests the way Sen. Orrin Hatch (R-UT) guards the vitamin/supplement industry or Sen. Chuck Schumer (D-NY) takes care of Wall Street. Lacking a powerful, savvy ally who is committed to your view is like being in a hatchet fight without a hatchet.

2. Concentrate on the tax. Much of the recent discussion about the cigar tax actually veered off into whether the concept of SCHIP is good or bad. Forget that. Don’t get drawn into politics. As you hear in DC almost every day, “Stick to your knitting.” For the cigar industry, the issue is the size of the cigar tax, not what it would be spent on. Let others argue about policy. Remember, when you’re counting votes, there are no Democrats or Republicans, only “yeas” and “nays.”

3. Don’t encourage Astroturf campaigns. If there’s one thing legislators know, it’s communication. Most ignore form letter communications, whether via email or fax, so constituents must make their voices heard individually by communicating their own points in their own emails, phone calls, faxes, and letters. Personal, grassroots efforts can be effective. Astroturf is not.

4. Be realistic. There is a large, powerful, not-very-reasonable anti-smoking movement out there. Cigar smokers are a small group. Recognize those facts and deal with them, rather than complain. In my opinion, some tax increase is inevitable. I’d suggest working to keep it as small as possible and trying to get other things you want along with it.

5. Increase congressional awareness. Organize congressional trips to the Dominican Republic, Nicaragua, and Honduras so lawmakers can see the plants, talk to workers, and get a feel for the economic impact of cigars in those nations. Back home, make sure every representative and senator knows all about the jobs related to cigars. And not just in shops and in Florida, but with operations like Finck in Texas, National in Indiana, tobacco farmers in Connecticut, etc.

6. Spend wisely. I’m not inclined to tell others how to spend their money. But I would suggest that employing lobbying and PR firms intimately identified with the GOP might not be the wisest course when both houses of Congress are now controlled by Democrats.

7. Stay alert. Getting surprised by a tax proposal shouldn’t happen. The best time to have an impact is before anything is committed to paper, so stay on top of it every day.