1985 Jan 31: Hurst Marshall has distributed this Tobacco Institute list of economists from the cash-for-comments network. It has been organise by State, and includes the names of Congressmen they wish to influence.

Attached for your information are the names of economists who have been identified by PR to assist TI on the federal cigarette excise tax issue.

These people are also available to testify at the state level.

    If you feel that this type of witness can be of assistance to you on state cigarette tax issues, please contact Fred Panzer for details and arrangements.

    Please notify your lobbyists as to the availability of these people. At the same time, you may wish to ask them for their ideas or suggestions for other economists within their states.

ARKANSAS (Rep. Anthony, Sen. Pryor )
  •   Professor David Gay ,
      University of Arkansas, Fayetteville, Arkansas

1985 Nov 6: Ken Arnold of Ogilvy & Mather PR writes to Fred Panzer at the Tobacco Institute.

Fred, here is a summary of the Economist Op-ed and Economic News Service projects.

    With regard to the Economist Op-ed project, we have submitted a total of 34 op-ed articles, and 18 of them have been published. Recent articles appeared in the Huntsville Times on September 11, by Robert Ekelund and in the Providence Journal on October 25, by Arthur Mead (see attachments).

    Enclosed is a revised op-ed chart, indicating House Ways & Means and Senate Finance Committee Members impacted to date and the circulation of each newspaper publishing the articles. In most cases, the papers are the largest in the targeted district.

ARKANSAS
Senator David Pryor
Congressman Beryl Anthony
Arkansas Gazette (c. 128,038) September 20
Professor David Gay
University of Arkansas

1985 Dec: /E President Ronald Reagan asked Senator Bob Packwood, chairman of the US Senate Finance Committee, to design a proposal for comprehensive tax reform

which would reduce the highest individual income tax rate down to 35% from its current 50% level, but retain adequate incentives for business investment, and avoid inclusion of any new taxes.

    In an attempt to do this without reducing the total amount of tax revenue that is currently collected, the Packwood plan proposes to offset reduced revenues from income taxes by what the Wall Street Journal has referred to as a "backdoor increase in excise taxes."

    The Packwood plan proposes to eliminate the income tax deductibility of excise taxes and import tariffs paid by businesses [and it] would increase federal excise tax receipts by an estimated $75 billion over five years. Approximately $13 billion of this would be a result of a direct increase in excise taxes on motor fuel, wine, distilled spirits, and tobacco.

1986 Jan: Public Relations Resources Commitee of the Tobacco Institute lists him as an available witness:

Public Smoking/Witness: Local economists are available on two-weeks notice to provide economic testimony on the public smoking issue. Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.

• Professor David Gay, Department of Economics, University of Arkansas, Fayetteville, AK

[He is also listed under the heading ]
Taxes/Witness: Local economists are available to provide economic testimony on excise taxes. The economist explain why excise taxes are regressive and unfair to consumers and unsuitable and unreliable as a means to increase the federal revenue.

1986 Jan: The Tobacco Institute's Public Relations Resource Catalogue for their Regional Directors, lists documents, booklets, article, posters and people who can help them fight local public smoking ordinances and threats to raise the excise taxes on cigarettes.

    It provides a long list of economists who are willing to speak at hearings, write letters to the editor, or create op-eds for the newspapers to counter any threat to public smoking or possible increase in excise taxes.

    The Tobacco Institute offered their Regional Directors the C/Vs of all of these economists, and said

"Requests for economists should be made ASAP. Allow at least one week. PR approval needed."

• Professor David Gay
  Department of Economics, University of Arkansas, Fayetteville, AK

Public Smoking/Witness: Local economists are available on two-weeks notice to provide economic testimony on the public smoking issue. Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.

Tax witness: [He will] "explain why excise taxes are regressive and unfair to consumers and unsuitable and unreliable as a means to increase the federal revenue."

    Those economists who have testified or prepared op-ed pieces on the economic effects of public smoking are marked accordingly. The others may be briefed on the potential cost to government of implementing smoking restrictions.

1986 March: Copies of the letters that the cash-for-comments economists wrote to various newspapers editors, and also the ones they wrote to their Senators — none of which mentioned that they'd been paid by the Tobacco Institute to write both the op-eds and the Congressional letters. These were sent to the Tobacco Institute as proof of their activities:

David Gay of University of Arkansas, Fayetteville, wrote to his friend "Bob" at the Arkansas Gazette (accompanying his op-ed) saying

I was shocked by Senator Packwood's crazy proposal to tax taxes as if they were income. I'm having a field day with this example in my public finance class this term. It is one of the screwiest proposals in recent memory. Attached a note that you might use for the op/ed page if it seems appropriate.

Senator Packwood's proposals to, in effect, increase the excise taxes by taxing businesses as if their tax collection constitutes revenues or income is one of the most ill-conceived ideas in recent memory since taxes collected are not either revenues or income for the firm. Perhaps more importantly higher excise taxes are regressive and fall most heavily on the poor.

Furthermore they distort choices between the taxed goods and those untaxed.

Knowing of your concern and interest in such matters I have enclosed an op/ed article written for consideration by the "Arkansas Gazette."

Thanks for your attention to the complicated tax matters and the difficult choices confronting Congress. Best wishes as you continue to untangle these issues.

1986 Mar 20: Tobacco Institute document: Background Update Of the Estimated Effect of the Packwood Tax Plan On the Price Increase Necessary For Cigarettes

If the deductibility of the excise taxes is eliminated, then most, if not all, of this tax increase will be passed on to tobacco consumers as price increases to cover the additional corporate taxes they will be required to pay, plus the indexed excise tax requirement.

    On the basis of 1985 sales, and the level of federal excise taxes paid on cigarettes, the level of taxable sales would be: $4.5 billion / $0.16 = 28.125 billion packs — the remainder are either sent overseas as exports or to armed services, or to government institutions.

    If the Packwood plan is adopted, and if the effective tax rate on tobacco corporations is 35 percent as in 1983, the increase in corporate income taxes would be about $1.83 billion.

    It must be assumed that this tax increase will be passed on to consumers in order to maintain net income. This will cause a decline in demand on the base level of 28.125 billion packs.

1986 Apr: /E James Savarese has circulated these instructions to his stable of cash-for-comment economists. He is asking them to write to the House Ways and Means Committee members in their states, and include a copy of their op-ed articles.

    He provides stamped and addressed envelopes, and strict instructions for what the letter should say:

Contents of your letter to the member

• Opposition to consumption taxes, especially federal excise taxes, and in particular alcohol and cigarettes (you may list others if you wish).
• Opposition to any tax increase as part of the budget reconciliation process; i.e., the need to comply with Gramm-Rudman target of $145 billion deficit limit. This deficit target should be reached with spending reductions.
• However, if the tax reform package that ultimately emerges generates some windfall tax revenues during the first year, FY 1987, these should take the place of any other tax increase that might be considered. (For your information, most analysts believe that the Packwood version of the tax bill is revenue neutral over a five year period, but that it raises between $15-$20 billion during the first year.
• One tax bill per year is more than enough. Whatever tax bill (if any) passed will create enormous uncertainty among the taxpaying public. The last thing that taxpayers — as investors, consumers, etc. — need is another tax bill one month after the major reform bill is passed.

1986 April: Professors Joseph M Jadlow (Oklahoma) and Charles Maurice (Texas A&M) have prepared draft articles attacking the Packwood Tax Plan. James Saverese has sent them, together with clippings of articles already published, along to Fred Panzer at the Tobacco Institute for correction and clearance. (See page 10)

    It lists many dozens of articles which the cash-for-comment economist on the network have now written, including one:

ARKANSAS

Prof David Gay, 3/12/86, Arkansas Gazette
Submitted to Paper: 3/28/86 to Senators Prior and Bumpers ,
Current Status:
Letter sent to Senator: [N/a}

1986 Apr 1: An Open Letter to Senator Robert Packwood (by Wm Mitchell) has been sent to the network economists to help them write their articles. This is a checklist of those in the 1) Writing Stage 2) Submitted to Newspapers 3) Letters Written to Senators.

    This cash-for-comments participant has written both the article and the letters to Senators, and has obediently attached copies of both, which are sent back to the Tobacco Institute.

1986 Apr 3: James Savarese writes to his stable of economists on the subject of "New Research Opportunities." [A sure-fire come-on with academics]

I would like to thank you for all of your cooperation and diligence in handling the projects we have worked on together. I am taking this opportunity to alert you to some new research opportunities that may be available in the upcoming weeks.

    The Tobacco Institute is interested in considering research proposals which would establish a much more realistic examination of the social cost issue as it relates to the smoking issue.

... rebuttals developed by Bob Tollison and Richard Wagner to the OTA report.

    The Institute would like to examine proposals for research that test, in a quantitative way, a number of propositions on the relevant cost considerations that apply to the smoking issue.

    If some aspect of this interests you, please provide me with a brief (1-2 page) description of any project you have in mind by April 30. Please include a cost approximation.

1986 Apr 3: This appears to be the approved copy of the letter on "New Research Proposals" that Jim Savarese sent to his long list of network economists. This letter leaves no doubt that these academic economist knew that they were being paid to protect the interests of the tobacco industry.

    The economist were also being given outline "rebuttals" developed by Tollison and Wagner to help them in writing their counter-attacks to an an Office of Technology Assessment (OTA) anti-smoking report.

I would like to thank you for all of your cooperation and diligence in handling the projects we have worked on together. I am taking this opportunity to alert you to some new research opportunities that may be available in the upcoming weeks.

As you know, the tobacco industry is exposed continuously to a barrage of attacks on economic issues. Many of these attacks involve a serious perversion of the concept of social cost. The Tobacco Institute is interested in considering research proposals which would establish a much more realistic examination of the social cost issue as it relates to the smoking issue.

I have attached a report prepared by the staff of the Office of Technology Assessment which is representative of the kind of "research" being put forth by anti-tobacco activists. I have also included the rebuttals developed by Bob Tollison and Richard Wagner to the OTA report.

The Institute would like to examine proposals for research that test, in a quantitative way, a number of propositions on the relevant cost considerations that apply to the smoking issue.

1986 Apr 11: The Tobacco Institute plans for State-by-State actions to generate opposition to the Packwood Tax Plan.

1986 Apr 15: Jim Savarese is reporting to Fred Panzer at the TI about the [anti] Packwood Tax Plan project. He includes numerous letters sent to Senators, copies of published op-eds, and a revised op-ed for Maine and one for Minnesota, He lists the successes of the network economists, including:

ARKANSAS, Prof David Gay
[Submitted to] Arkansas Gazette 3/27/86
[Letters sent to Senators] Pryor and Bumpers, 3/27/86

1986 May: A bundle of 72 pages of information is being circulated by the Tobacco Institute to its Regional Directors. The data is predominantly on the tobacco-industry beat-up known as Sick Building Syndrome and on the general problems of Indoor Air Quality [all down-playing the effects of smoking in confined spaces]

    Section 1 is headed

List of sources. Local and national experts you can call for quotes or background information. It promotes the services of three specialist lobbyists

• Lewis Solmon - an academic who discounts problems of workplace smoking
• Al Vogel - who claims to be an expert in public attitudes to smoking
• Mike Forscey, a labor lawyer/lobbyist who helped the tobacco industry keep the union movement on-side.

1986 May 22: James Savarese has written to his cash-for-comments economists requesting that they now...

... produce a follow up letter to the members of the House Ways and Means Committee in your state. You will note that we are asking that you send this correspondence by Tuesday, May 27, to the home district offices of these members.

    You should refer to your correspondence with the state's Senators and attach copies of your OP-EDs that were placed. In the event that your OP-ED has not yet been placed, please attach it and mention one newspaper to which it has been sent.

Contents of your letter to the member:

• Opposition to consumption taxes,
• Opposition to any tax increase as part of the budget reconciliation process;
• One tax bill per year is more than enough.

1986 May 30: Fred Panzer of the Tobacco Institute was contacting British-American Tobacco's PR executive, Tom Humber [also Burson-Marsteller and National Smoking Alliance] sending him some of the examples of the network economists.

Enclosed are: (1) The first wave of 27 op-ed reprints, (2) A second wave of 32 op-ed articles (21 published and 11 unpublished), sent out on Packwood's first tax reform proposal.

    I've also included one on the Chase [Economtrics] study. There are a few others being rounded up, as well as a syndicated excise tax feature series we developed. Out of all this should come something useful for your people.

1987 Aug 21: Savarese and the field staff of the Tobacco Institute have now finalised their lists of useful economists — those who have been productive and compliant. This is the current functional list (they now have coverage in 41 states). For this state they say:

ARKANSAS
    Professor David E.R. Gay
    University of Arkansas
    Fayetteville, AR

Excise Tax Op Eds: Arkansas Gazette—05/29/87
Economic Witness/Testimony: (nil)
Field Staff Contact: Meeting scheduled for June.
Field Staff Evaluation: None.

1986 Oct 3: The State Directors for the Tobacco Institute have been reviewing all economics network witnesses in their territories, and culling those who are not actively participating. The Washington DC office is now circulating this to its State Directors.

"Attached is a list of economists with their specialty areas and office phone numbers. They have been identified in several states by J. Savarese as available and hopefully capable to testify in our behalf, or aid in our defense against proposed state of local legislation, from an economic aspect.

ARKANSAS (Rep. Anthony, Sen Pryor)
Professor David Gay,
University of Arkansas, Payetteville, Arkansas, 501-575-4002
[Specializing in] General theory; economic growth, development, planning; legal relationships; micro theory

1986 Dec 11: James Savarese sends Fred Panzer at the Tobacco Institute a summary of the activities of his network of economists. This is effectively the beginning of the main cash-for-comments economists network.

Dear Fred,
    I have attached a list of all the economists we have used along with the projects they have worked on in behalf of the Tobacco Institute.

• GSA = Government Services Administration.
• 'Ways & Means' = Congressional committee on finances
• ALEC = American Legislative Exchange Council (a formalised way for big business to directly influence Congressional and State politicians)
• Chase Econometrics = A company that did economic impact studies for the tobacco industry in various locations to 'prove' that smoking bans would destroy local economies.
  
      The references for this network member were:

Arkansas [Region VII]

Professor David E. R. Gay

Department of Economics, University of Arkansas, Fayetteville, Arkansas 72701, 501-575- 4002

Services rendered:
• original excise tax op-ed
• Packwood op-ed
• Ways and Means letter writing campaign
• GSA Letter writing campaign

1987 Jan 6: and 12 Jim Savarese advises the Tobacco Institute that some economists were no longer working for his network. However Gay is still being listed as their main Arkansas economist-for-hire.

In order to keep this project straight with respect to the economists, we were specifically assigned to go back to all 42 names on the original list to check to see if the economists were still interested in working for us, still in the same state, and available to meet with representatives from state activities.

    We have 34 who fit this criteria and have been contacted. The list is attached. The states that we once had that are currently missing are Arizona, Maryland, Massachusetts, Nebraska, New Jersey, Vermont, West Virginia, and Wyoming.

    The attached invoice covers the project of re-contacting the original 42 economists and coming up with the present 34 people.

The primary purpose of this contact is to determine if a given economist is capable of testifying effectively before a legislative body.

    They have been informed that someone from TI will be in contact with them.

    We request that an initial contact be made by telephone immediately. Please let me know when this initial contact has been made. Personal meetings should be arranged and completed no later than May 1, 1987.

1987 Jan 6: Savarese is charging the Tobacco Institute $3,200 to update the cash-for-comments economists list — with Gay listed as active in Arkansas

1987 Feb 6: James Savarese has finalised his list of compliant economists, and sends them to Susan Stuntz at the Tobacco Institute. It lists all the familiar cash-for-comment economists

Old faithfuls:
Lee Anderson, Terry Anderson, Dom Armentano, Cecil Bohanon, Thomas Borcherding, Henry Butler, JR Clark, John David, Allan Dalton, Arthur Denzau, Clifford Dobitz, Robert Ekelund, David Gay, Anne Harper-Fender, Dennis Hein, John Howe, Wm Hunter, Joe Jadlow, Michael Kurth, Suuner LaCroix, Dwight Lee, C Matt Lindsay, Dennis Logue, Chuck Mason [Masen], Charles Maurice, Fred McChesney, Robert McMahon, Arthur Mead, Wm Mitchell, Allen Parkman, Wm Peterson, Thomas Pogue, Barry Poulson, Raymond Raab, Simon Rottenberg, Mark Schmitz, Richard Vedder, Richard Wagner

Greg Niehaus, Mario Rizzo, Roger Riefler, and Boon Yoon.]

ARKANSAS
Prof David E. R. Gay
    Department of Economics, University of Arkansas, Fayetteville, AR 72701, 501-575-4002

1987 May 29: A list of quotes excerpted from major newspaper editorials and op-eds from the TI's cash-for-comments economists about the Packwood tax plan. He has had his article "Excise taxes shift burden to poor" published in a Little Rock newspaper.

Arkansas Gazette, May 29, 1987
"I do not want to try to balance the budgets on the backs of the poor."

David E. R. Gay, professor of economics, University of Arkansas

Actual article
[Selective quotes]

1987 June 9: The Tobacco Institute's Phase II - Excise Tax Op-Ed project involved an article-writing campaign by cash-for-comment economists was run by James Savarese & Associates. It was secretly directed by Robert Tollison from George Mason University with Savarese as the organiser and front.

    In the mid 1987 period, the project was controlled by Jeff Rose [under Peter Sparber] at the Tobacco Institute and it focussed on defeating cigarette excise tax increases — and especially the threat of such taxes being 'earmarked' to bolster health care budgets.

    Saverese and Tollison appear to have been in some form of loose partnership, because Anna Tollison, the wife of Bob Tollison, was employed by James Savarese & Associates to keep a record of the articles generated by their large contingent of academic economists and to organise payment.

    She reported that

"In sum, 41 economists were solicited to write editorials. We have publications in 20 states, 14 articles have been written and submitted, and 7 articles are still outstanding." [Others were in the offing]

ARKANSAS, Gay, Little Rock Gazette, [circ.] 129,000, [no pub date]

1987 June 22: The Tobacco Institute has been sent by Savarese a "Schedule of Payments — Excise Tax Op-Ed Project" It details the name of the cash-for-comment economist, the State, the targetted newspaper, and both past and current payments — with a separate column labled "Total Earned to Date".

In ARKANSAS
Gay for Little Rock Gazette —Owed $1500, — Total to date $1500

1987 June 23: Savarese writes to Jeff Ross at the Tobacco Institute sending along a list of Democrat members of the House Ways and Means Committee...

... along with the economists we use in those areas. Nine of these are good, solid hits which we should be able to count on to do the job and get a publication. I have *ed these on the attached list. The remaining 6 are all people we have used in the past, but who have not been consistently successful.

    Since I'm under a new financial arrangement with the Tobacco Institute and I need to get these costs cleared in advance, I'll make my best effort here to budget this proposed project.

    If all 15 would get published, which is highly unlikely, the cost of Phase II Excise Tax Op-ed Project would run $45,000.

    More than likely we'll get 8-10 placements and 3 to 4 others who won't get placed, but will still send letters to their members on the Ways and Means Committee. In that case, the cost will be $37,000.

1987 July: a selected group of the economists have been commissioned to write op-eds about cutting the deficit — and to de-emphasise the value of excise taxes. Generally they follow the line of listing four possibilities approaches

• a general consumption tax (efficient but regressive)
• increased excise taxes (inefficient and regressive)
• a national lottery (regressive and competitive with State lotteries)
• increased income taxes (unpopular)

1987 Aug 21: Jeff Ross at the Tobacco Institute has prepared a consolidated summary of "Field Staff Evaluation of Economists" for his superiors, William Kloepfer and Peter Sparber. They have been asked to look at 34 of these academics. This includes an outline of their recent achievements.

ARKANSAS
Professor David E.R. Gay, University of Arkansas. Fayetteville, AR

Excise Tax Op Eds: Arkansas Gazette — 05/29/87

Economic Witness/Testimony: (nil)

Field Staff Contact: Meeting scheduled for June.

Field Staff Evaluation: None

1988 Mar 31: The Tobacco Institute's list of available economists, with details of their target for a review of Robert Tollison and Richard Wagner's "Smoking and the State" book (secretly funded and published by the tobacco industry). Jim Savarese writes to Jeff Ross who looks after the cash-for-comments network:

I have listed below potential areas where we could place book reviews for the Tollison/Wagner monograph.

Arkanas

Targeted paper: (none given)
Economist: David ER Gay, university of Arkansas, Fayetteville

1988 May 26: Savarese advises the Tobacco Institute that

We have initiated the book review project. [A series of newspaper reviews to promote the tobacco-funded book "Smoking and the State" written by Tollison and Wagner.] A copy of the book and a short summary were sent out today to 17 economists across the country with instructions for writing a brief review suitable for newspaper publication.

    I have attached a list of the economists. I'll keep you up to date as soon as the reviews start rolling in.

1988 Aug 15: Gay has sent his draft review of the Tollison/Wagner book into the Tobacco Institute for clearance and editing. Carol Hrycaj, who was now looking after the cash-for-comments network, has sent the review along to the TI's legal firm Covington & Burling for legal clearance.

1988 Oct: A Savarese memo notes that his review was sent to (and printed in)

1. Arkansas Gazette
2. Arkansas Democrat

1988 Dec: /E A report on the 'Social Costs' issue made to the executive of the Tobacco insitute says:

Tollison and Wagner went to Oklahoma City, OK, and Baton Rouge and New Orleans, LA, promoting Smoking and the State.

    We worked with State Activities and Media Relations to select media tour sites for the next six months. David Gay and Allen Parkman's critiques of the book appeared in the Arkansas Democrat and the Alburquerque Journal. Additionally, Todd Sandler's book review has been distributed nationwide by a mat service.
[They meant "matte" — a ready-to-print high-quality page sent out to free newspapers.]

    Economists' letters to editors [were budgeted to cost] — $33,917.

1988 Dec 1: James Savarese reports to Susan Stuntz at the Tobacco Institute on his unit's activites during November (for himself and his employee, Leslie Dawson). His consultancy is specialising in coopting labor and economists, and countering the next Surgeon General's report.

• met with officials of the Economic Policy Institute (EPI) to discuss tax strategy.
• continued discussion with Coalition of Labor Union Women (CLUW) re national convention
• continued work with National Energy Management Institute (NEMI) on development of training program and brochure.
• meetings with Citizens for Tax Justice, Leadership for the New Century, Citizens for Tax Justice, National Economic Commission.
• on the task force for Airline Cabin Air Quality (weekly meetings/ writing op-eds)

He also lists successes he has had with getting economists to plant op-eds on various local newspapers.

• Prof David Saurman - op-ed on Prop 99 with San Jose Mercury News
      Also numerous reviews of the Tollison/Wagner book "Smoking and the State".
• Prof Ryan Amacher (Clemson Uni) in The State.
• Joseph Jadlow (Oklahoma State Uni) in Tulsa Tribune.
• Todd Sandler (Iowa State Uni) in Fort Dodge Messenger.
• Robert B Ekelund (Auburn Uni) Montgomery Advertiser.
• Dwight R Lee (Washington Uni) Regulation Magazine.
• Samson Kimenyi (Uni of Mississippi) in Jackson Clarion ledger.
• David ER Gay (Uni of Arkansas) in Arkansas Democrat.

1988 Dec 1: James Savarese writes to Susan Stuntz at the Tobacco Institute reporting on his activites during November (both for himself and his employee, Leslie Dawson). His consultancy is also now specialising in co-opting labor and economists, and countering the next Surgeon General's report. He has

• met with officials of the Economic Policy Institute (EPI) to discuss tax strategy.
• continued discussion with Coalition of Labor Union Women (CLUW) re national convention
• continued work with (union owned) National Energy Management Institute (NEMI) on development of training program and brochure. [They were paid to fake air quality readings]
• meetings with Citizens for Tax Justice, Leadership for the New Century, Citizens for Tax Justice, National Economic Commission. [All likely tobacco industry allies]
• on the task force for Airline Cabin Air Quality (weekly meetings/ writing op-eds)

He also lists successes he has had with getting economists to plant op-eds on various local newspapers. His and Tollison's network of economists has generated numerous reviews of the Tollison/Wagner book "Smoking and the State," which the Tobacco Institute has funded and now wants to be widely circulated.

• Prof David Saurman - op-ed on Prop 99 with San Jose Mercury News
• Prof Ryan Amacher (Clemson Uni) in The State.
• Joseph Jadlow (Oklahoma State Uni) in Tulsa Tribune.
• Todd Sandler (Iowa State Uni) in Fort Dodge Messenger.
• Robert B Ekelund (Auburn Uni) Montgomery Advertiser.
• Dwight R Lee (Washington Uni) Regulation Magazine.
• Samson Kimenyi (Uni of Mississippi) in Jackson Clarion ledger.
• David ER Gay (Uni of Arkansas) in Arkansas Democrat.

1989 Jan: The TI Communications division report dealt with

• Media and "Truth-squad" tours by consultants - Gray Robertson, David Weeks, Jack Peterson, Tollison and Wagner
• Legal Briefings by John Fox
• Third Party and Allied Activities - Bestype, HBI, John Fox
• Freedom to Advertise Coalition (FAC) - tobacco and ad agencies
• "Enough is Enough" campaign (attack on Surgeon General's report)
• Counter to AMA "Tobacco Use in America" conference (and JAMA article)
• Labor Management Committee and bribed unions
• Economists op-eds - Allen Parkman, Todd Sandler, David Gay, Lloyd Cohen, Robert Staaf, Michael Kurth

1989 Jan 4: Savarese sends his December Status Report to Susan Stuntz at the Tobacco Institute. It lists dozens of projects that he is supervising — and meetings he is organizing to help the tobacco industry create coalitions with other industries and unions.

    Entries most relevant to the cash-for-comments economists are:

• participated in strategy sessions on the National Economic Commission (NEC). [Later a general economists op-ed project]
• Agricultural Research project — began development of research proposals on the effect of excise taxes on farmers. [Later became an Ekelund and Long 'study'.]
• Airline Cabin Air Quality — continued op-ed project on Northwest Airlines. [They had been first to ban smoking on domestic flights] As of January 3, three op-ed projects have been published
  • Shreveport Journal [by] Michael Kurth, McNeese State Uni
  • Commercial Appeal [by] JR Clark, University of Tennessee at Martin
  • The Greenville News [by] Ryan Amacher, Clemson University
• Began Ad Ban op-ed project. As of January 3 one op-ed has been published
  • Chicaco Tribune [by] Lloyd Cohen, California Western School of Law.
• Social Cost Book Review Program [smoking and the State] - As of January 3, seven book review have been published.
  • The State [by[ Ryan Amacher, Clemson University
  • Tulsa Tribune [by] Joseph Jadlow, Oklahoma State Uni
  • Grand Forks Herald [by] Cliff Dobitz North Dakota State University
  • Fort Dodge Messenger [by] Todd Sandler Iowa State University
  • Montgomery Advertiser [by] Robert B. Ekelund Auburn University
  • Bryan-College Station [by] Charles Maurice Texas A&M University
  • Columbus Enquirer by Dwight R. Lee Washington University
  Three are forthcoming:
  • Regulation Magazine [by] Dwight R. Lee Washington University
  • Jackson Clarion Ledger [by] Samson Kimenyi University, Mississippi
  • Arkansas Democrat [by] David E. R. Gay University of Arkansas

1989 Jan 1: David Gay's review of the Tollison/Wagner tobacco-promoting book appeared in the Little Rock Arkasas Democrat newspaper with the title "Up In $moke: New book discusses in detail economic and health costs of smoking in America.

    Despite knowing Tollison intimately, and being funded by the tobacco industry through a Tollison organisation, he makes no mention of any tobbcco connections that might... just possibly... represent a conflict of interest.

    He does, however, used the old PR ploy of pretending to be reluctantly converted by the relentless logic of the book.

Most excise taxes, specifically cigarette taxes, violate this general rule. Indeed such taxes are often a smokescreen to shift some of the tax burden from nonsmokers to smokers. This is the case with cigarette excise taxes.

    The new book by Robert D. Tollison and Richard E. Wagner, both professors of economics at George Mason University's Center for Study of Public Choice, challenges many ideas about the role of state regulation and public policy.

    Their analysis revises many commonly held beliefs in the controversy about who bears the cost of smoking and who should bear those costs.

    The authors provide an illuminating summary of public choice principles, wealth creation and wealth transfers, and the behavior of bureaucracy in a democracy. Whew! That took my breath away, too.

They made me reconsider my own prejudices about who bears the burden of smoking and the effects of well-intentioned laws on the choices of smokers and nonsmokers in a free society.

The resulting distortions of economic activity due to smoking are estimated to be $800 million plus the attempts to lobby for and against such taxation, so that the distortions to the economy could be as much as $10 to $11 billion!

    This book is a potent antidote to anti-smoking crusaders who cloak their biases in pseudoscience. This thoughtful, provocative little volume should be read with great interest.

1989 Jan 11: The Tobacco Institute's Scientific Consultancy Activity 1988-89
This is an 80 page mixed bag of files dumped together [Well worth perusing]. The first document is from 1990 [ordered in reverse]

• Pages 3 to 23 begin with Witness Appearances in 1988 and 1989 involving both "Indoor Air Quality experts" who work for the Tobacco Institute, and three economists [Bob Tollison, Richard Wagner and Dwight Lee]
• Pages 24 to 31 Labor IAQ Presentations in 1988 and 1989 which involves key figures in the labor movement and a few "IAQ experts."
• Pages 32 to 39 IAQ/ETS conferences attended by tobacco industry disinformation experts in 1988 and 1989
• Pages 40 to 41 Academic and Unaffiliated Scientfic Witnesses
• Pages 43 to 53 Smokers Rights Legislation in various states.
• See page 54: Tobacco Institute "Confidential" memo on "Tax Hearing Readiness" which is their battle plan to counter earmaking of cigarette excise taxes to fund health programs. It lists a large number of organizations and a few congressmen who can be relied on to help. It also has both primary and secondary lists of economists from Tollison's "cash-for-comments" network willing to give testimony.

  Economists: [Primary]

  • Bill Orzechowski, Tobacco Institute
  • Robert Tollison, George Mason University
  • Richard Wagner, George Mason University
  • Dwight Lee, University of Georgia, Athens
  • Michael Davis, Southern Methodist University
  • Gary Anderson, California State at Northridge
  • William Prendergast (resource: Prendergast/Solmon papers)
  • Other Network economists [see Secondary attached list below]
    
        "Due by mid-year is a book examining earmarking and "user fees" from a public choice perspective. The treatise will contain 8-10 chapters written by respected economists, including, Henri LePage and Nobel laureate James Buchanan."

  The Tobacco Institute's list of cash-for-comments professors and senior academics who were available to write op-eds and give evidence at Congressional hearings, etc. had grown extensively.

  ARKANSAS
  
  David E. R. Gay, Univ. of Arkansas

[TI budget papers show that each op-ed now earned the economists $3,000. Presentations to conferences earned them $5,000. Savarese was paid $70 to $100,000 pa for this project, and Ogilvy & Mather $250,000.]

See page 5

1989 Mar 17-19: The Annual Meeting of the Public Choice Society together with the Economic Science Association. These are Hayek-oriented neo-con economists of the kind which gave us the Global Financial Crisis of 2008-9, and the Tobacco Institute was billed by Savarese & Associates for the network economist's time to attend and speak.

    The speakers list here mentions many active members of the economists network: — some of whom spoke more than once. ( William Hunter in particular.) It is clear that this society was a profitable recruiting ground for Tollison and Savarese.

    The large group of speakers connected with Tollison's Center for the Study of Public Choice at George Mason University completely dominated the conference session on Public Health.

• Robert Tollison
• Richard Wagner
• David ER Gay
• Dwight Lee
• William C Mitchell
• Burton Abrams
• Cecil E Bohanon
• Charles Breeden
• William J Hunter
• Bruce Benson
• Burton Weisbrod
• Bruce Yandle
• Roger L Faith
• Roger Congleton
• James Buchanan
• Gary Anderson
• Peter J Boettke
• Jeffrey R Clark
• Robert J Staaf

1989 Mar 30: Dwight Lee's report and papers from an "Issues and Taxation" session which was organised for the Southwestern Social Science Association meeting in Little Rock Arkansas. Lee reported that:

Three papers were presented, one each by Dwight R. Lee of Washington University, St. Louis; Richard McKenzie, Clemson University; and David Gay, University of Arkansas, Fayetteville.

    Discussants were Edward Price, Oklahoma State University; Richard Wagner, George Mason University.

    The session was attended by approximated 20 people, and enough time was left over for several questions and comments

[TI budget papers show that each op-ed now earned the economists $3,000. Presentations to conferences earned them $5,000. Savarese was paid $70 to $100,000 pa for this project, and Ogilvy & Mather $250,000.]

1989 April 18: Susan Stuntz (Issues Manager) at the Tobacco Institute memoes her boss Sam Chilcote. She is sending him material previously used for a two-day "Gerry Long" presentation. He wants to use it in a shorter one-day (unspecified) briefing session.

[Gerald H Long was the CEO of RJ Reynolds who in 1988 had just taken over as Chairman of the Tobacco Institute's Executive Committee and wanted to make changes.]

Economists' Network 64 Strong [is] Targeted to Congressional Tax Writing Committees [and utilizing the] Production of Op-Eds on Federal Tax Policy.
[List of economists]

1989 Dec 14: Jim Savarese is listing the economists taking part in their new Excise Tax Op-Ed project.

I have also listed the newspapers we plan to target and a package of the materials we are sending to the economists.

    We should start getting drafts of the op-eds around the first of the year.

1990: The RJ Reynolds files containa long document listing the Tobacco Institute's successes over 1989 and early 1990 with a range of issues.

David Gay Professor of Economics, University of Arkansas
      4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat

1990: A paper outlining the Tobacco Institute's successes in countering Federal Excise Tax (FET) increases, along with a number of its coalitions and the support from its contracted academic economists.

We are implementing a new consulting economist op-ed campaign to increase the visibility of the case against using excise taxes for deficit reduction, while bringing the anti-consumer excise message to a wide audience. Twenty economists are preparing anti-excise articles for placement in newspapers in select congressional districts.

    Articles from the earlier op-ed campaign, which debunk the excise tax/user fee connection, continue to appear in print. An op-ed prepared by consulting economist David Gay appeared recently in the Arkansas Democrat. The authors of other published articles have sent copies to their congressional representatives.

1990 Jan: This is yet another list of the work that scientists and academic consultants for the Tobacco Institute have achieved over the past year. Brennan Dawson, PR head of the Tobacco Institute, reports on their activities to the TI's Communications Committee She gives details of their work in planting ghosted academic-op-ed pieces for the tobacco industry. Some of the economists managed to plant these tobacco-funded articles on a number of newspapers.

• Robert Tollison, Duncan Black Professor of Economics, George Mason University.
  Letters to administration officials debunking excise tax/"user fee" connection Jan 1990
• Richard Wagner, Chair and Harris Professor, Department of Economics, George Mason University [a close associate of Tollison]
  Letters to administration officials debunking excise tax/"user fee" connection. Jan 1990
• Dwight Lee, Ramsey Professor of Economics, University of Georgia
  Op-ed on excise taxes and user fees published in Macon Telegragh News Jan 1990

---

    On the Tobacco Institute list the names below are marked "Consulting Economists, not on Philip Morris' List" which suggests that many more economists were doing the bidding of the tobacco industry.

• David Gay, Professor of Economics, University of Arkansas
      Excise Tax/"user fee" op-ed published in Arkansas Democrat April 1990
• Barry Poulson, Professor of Economics, University of Colorado
      Excise Tax/"user fee" op-ed published in Aiamosa Valley Courier May 1990
• Dominick Armentano, Professor of Economics, University of Hartford
      Excise Tax/"user fee" op-ed published in New Haven Register Jan 1990
• Michael Babcock, Professor of Economics, Kansas State University
      Excise Tax/"user fee" op-ed published in The Topeka Capital-Journal March 1990
• Thomas Wyrick, Professor of Economics, Southwest Missouri State University
      Excise Tax/"user fee" op-ed published in News-Leader May 1990
• Clifford Dobita, Professor of Economics, North Dakota State IIniversity
      Excise Tax/"user fee" op-ed published in Grand Forks Herald Mar 1990
• Richard Vedder, Professor of Economics, Ohio University
      Excise Tax/"user fee" op-ed published in Plain Dealer Jan 1990
• Joseph Jadlow, Professor of Economics, Oklahoma State University
      Excise Tax/"user fee" op-ed published in The Tulsa Tribune Apr 1990
• Ryan Amacher, Dean of the College of Commerce and Industry, Clemson University
      Excise Tax/"user fee" op-ed published in The Anderson Independent-Mail Feb 1990
• J R Clark, Hendrix Professor of Economics, University of Tennessee
      Excise Tax/"user fee" op-ed published in The Paris Post-Intelligencer, The Weekly County Press, Kinusoort Times-News, The Commercial Appeal, the Jackson Sun. May 1990
• John David, Professor, West Virginia Tech
      Excise Tax/"user fee" op-ed published in The Charleston Gagette Feb 1990
• William Hunter, Associate Professor of Economics, Marquette University
      Excise Tax/"user fee" op-ed published in The Milwaukee Journal Feb 1990
• Todd Sandler, Professor of Economics, Iowa State University
      Anti-excise tax/"no taxes" op-ed published in Fort Dodge Messenger Jun 1990
• William Mitchell, Professor of Political Science, University of Oregon
      Anti-excise tax/"no taxes" op-ed published in The Register Guard Jun 1990

1990 Feb 13: The draft articles of Joseph Jadlow ("Low and Middle Income Txpayers may be Loosers in the Political Chess Game") and David Gay ("Much Ado About Taxes") have been cleared by the Tobacco Institute and sent to the law firm Covington & Burling for legal clearance.
A note has been added to the Gay draft saying:

We are relying on Hollings in connection with the possible sequential referal of the Kenndy Bill. Do we really want to take this shot at him now?

    Talk to Bill before it goes.

    Some points for the Jadlow piece... [Not included]

1990 May: This is a list of the newspapers designated to certain economists on the network. They are to attempt to plant an op-ed article on "Excise Taxes" on this local newspapers.

ARKANSAS
David E. R. Gay, Univ. of Arkansas

1990 May 7: The Tobacco Institute's "1991 Tax and Social Cost Plans" have sections on

• "Social Costs" Hearings Readiness (preparation for fielding witnesses at Congressional hearings.) They list here the arguments that the Institute and its allies must be prepared to present.
• "Tax" Hearing Readiness (as above, but for excise tax increases, State and Federal)
• List of cash-for-comment network economists in each State.

ARKANSAS
Prof David E. R. Gay
Department of Economics, University of Arkansas
Fayetteville, AR 72701 501-575-4002

1990 Aug: This long document has media tour records [being conducted by Fleishman-Hillard] for the cash-for-comments

• economists network
• ventilation network members (mainly HBI)
• biological scientists network,
• academic lawyers nework
• labor network and
• advertising academics network

David Gay
Professor of Economics, University of Arkansas

4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat

1990 Aug 3: Sam Chilcote at the Tobacco Institute has advised the Members of the Executive Committee of plans to develop a celebrity speakers program using academics and other expert consultants. There are offer the speakers both money and personal promotion:

[W]hile it is clear that there are a number of individuals who can and are speaking out on our issues independent of The Institute, there also is much more that could be done. There are, for example, opportunities to develop higher profiles for those individuals with whom we enjoy an existing relationship, and to increase within the media an awareness of their availability.

    There also are a number of individuals who have been identified who do not currently have a relationship with the industry, but whose views appear to be compatible with our own. Should the Executive Committee decide that it wants to proceed with an expansion of our speakers' program, these individuals would be contacted to determine their interest in our issues.

    The addition of new speakers to our program will be expensive. Most of these individuals command substantial consulting fees; media and other activity will require a new commitment of funds, although an exact amount cannot be determined until candidates have been approached.

• Authors, newscasters and newspaper columnists
• Well-known politicians, political aides, White House staffers, State authorities, agency administrators, etc
• Heads of various coalition groups (American Advertising Federation. etc)
• Cash-for-comments legal and business academics from Savarese's network list.
• Cash-for-comments 'risk assessment' academics and promoter.
• Cash-for-comment experts in indoor air pollution and ventilation systems.
• Cash-for-comment academic economists + some likely allies:

  • BRUCE L. BENSON, professor of economics, Florida State University and board member, James Madison Institute, a Tallahassee think tank.
  • DWIGHT R. LEE, professor of economics, holder of the Ramsey Chair of Private Enterprise, University of Georgia
  • JAMES C. MILLER, Citizens for a Sound Economy Foundation, Washington; former director of OMB
  • WALTER E. WILLIAMS, professor of economics, George Mason
        University, Fairfax, Va.
  • BOB TOLLISON, George Mason University, Center for the Study of Public Choice

• Some more minor network academics, together with their recent achievements.

David Gay
Professor of Economics
University of Arkansas

4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat

1990 Oct: /E Tobacco Institute document. It lists the services that academics and secret consultants have provided to the tobacco industry during 1989 and 1990 — both as witnesses and as authors of articles and letters.

• Pages 2 - 9     Advertising: lawyers and advertising administrators
• Pages 10 - 30 Science and Public Policy on ETS/IAQ
• Pages 31 - 39  Taxation
  This gives the dates of each of the services, and any 'Current Projects' they may be working on:

David Gay
    Professor of Economics University of Arkansas

• 4/90 Excise Tax/"user fee" op-ed published in Arkansas Democrat

See page 32-5

[TI budget papers show that each op-ed still earned the economists $3,000. Presentations to conferences earned them $5,000. Savarese was paid $70,000 to $100,000 pa for this project, and Ogilvy & Mather $250,000.]

See page 5

1991 Jan: /E Tobacco Institute draft plan for 1991 with emphasis on "Taxes." These are the economist-related paragraphs:

Objective
To discourage reliance on consumer excise taxes on cigarettes to meet social and economic objectives by demonstrating that excise taxes are regressive and inconsistent with fair taxation.

Goals and Tactics:

• Commission two op-ed articles in 1991 from consulting economists. As articles are published, provide to other Institute decisions for promotion and submission to appropriate policy makers.
• Conduct at least 10 presentations by consulting economists on the excise tax issue before national, regional and state tax policy conferences.
• Continue to utilize consulting economists for testimony and briefings. Expand appearances to include presentations to business clubs and the business press. Conduct media refresher courses for public speaking appearance and delivery of testimony.
• Utilize the consulting economists for an op-ed program that addresses the national earmarking issue and state specific earmarking issues. As articles are published, provide to other Institute divisions and promote to appropriate public policymakers. Use field staff network to support distribution efforts.

1993 Mar 23: Jim Savarese is proposing to Cal George at the Tobacco Institute a new Op-ed program.

Outlined below is our proposed op-ed program in opposition to the use of excise taxes to finance health care.

1. Op-ed article by Tollison for the Wall Street Journal — $ 4,000.00
   
   
2. Rebuttal article by Bob Ekelund, Auburn University, to be submitted to the Birmingham News — $ 3,000.00
   
   
3. "Monster" tax op-ed project using twenty economists (list attached) to submit articles in opposition to using excise taxes on cigarettes to finance health care reform - to be submitted to twenty newspapers in twenty different states — $60,000.00
   
   TOTAL $67,000.00

1993 Aug 3: This is a series of lists dated from March to August 1993. Savarese's staff have sent these to the Tobacco Institute to progressively report successes and failures with the economists writing op-ed pieces and having them published.

    Collectively they give us a good idea as to how the network worked and how litte they managed to plant on the major newspapers (the smaller local papers were obviously easy.) It's also interesting to observe the mechanical processes and the tight control the tobacco industry and its lawyers exerted over these academic lackies.

• The articles were either rejected, revised or passed by Jim Savarese and his staff
• They were then sent for checking and alteration by Calvin George [Cal] at the Tobacco Institute.
• The lawyer David Reemes who worked for the industry's main Washington lawfirm Covington & Burling then cleared them for publication.
• The economist then received the revised copies back for onward transmission to the selected newspapers.
• They would then send a copy to their local Congressmen without mentioning the tobacco industry's contractual arrangement.

ARKANSAS
Prof David ER Gay, Department of Economics, University of Arkansas, Fayetteville AR
• Mar 23 — [Designated newspaper/s] Arkansas Democrat-Gazette
• Apr 9 — Received 4/28/93 — Sent to Cal [TI] 4/28/93 — Sent to [David] Reemes [Covington & Burling lawyer] 5/3
• May 12 — Submitted to Arkansas Democrat-Gazette
• May 18 — (as above)
• June 2 — (as above)
• June 14— Submitted to: Arkansas Democrat-Gazette
• Aug 3 — (as above) [Sent fax 7/20/93] [It was probably rejected]

1994 March 16: A group of academic economists including almost all the members of the Tobacco Institute's cash-for-comments network sent an "An Open Letter to President Clinton on Healthcare Reform." This had been organised by David J Theroux, the founder and operator of the Independent Institute apparently with the assistance of an academic network member, Simon Rottenberg. [The institute was well-funded by the tobacco industry]. They say:

In The Open Letter to President Clinton, 565 economists and 76 other scholars from all 50 states and the District of Columbia state their firm opposition to any form of direct and indirect price controls in any healthcare program.

    Rationing Health Care: The New Threat of Price Controls, by Simon Rottenberg and David J. Theroux

In countries that have imposed these types of regulations, patients face delays of months and years for surgery, government bureaucrats decide treatment options instead of doctors or patients, and innovations in medical techniques and pharmaceuticals are dramatically reduced.

1998 Aug 15: The Florida "Press Journal" carries an article "Government assults success" by cash-for-comments economist DT Armentano which attacks the McCain tobacco bill and the FDA.

    The list of the activities of the other economists shows that the network continued to be operated by the Tobacco Institute itself (under Walter Woodson, and Lance Morgan - both Public Affairs division). [However Savarese is still in the picture.]
However, since legally discovered tobacco documents had already begun to appear on-line, they have carefully deleted the names of the Professor of Economics who wrote each op-ed piece.

Gay is listed under the heading

ARKANSAS, University of Arkansas
PUBLISHED 7-6
    Arkansas Democrat-Gazette