Reynolds Employees Protest Tax Proposal

Source from:  Tobacco Reporter 06/18/2009

More than 400 employees of Reynolds American and its operating companies rallied in Raleigh yesterday to oppose a proposed $1 per-pack increase in North Carolina's cigarette excise tax. "What a great turn-out from our employees," said Daan Delen, chairman, president and chief executive officer of R.J. Reynolds Tobacco Co. "We are sending a clear message to the governor and those who support an increase in these taxes. The production and manufacture of tobacco remains vitally important to our state's economy. The governor's proposed $1 per-pack tax increase will cause job loss and economic hardship for thousands of North Carolinians. "North Carolina's smokers pay more than $500 million to the state in tobacco taxes each year already. The 50,000 NC workers whose jobs are tied to tobacco paid millions more in income and property taxes. The tobacco companies in the state pay billions of dollars of wages, benefits, and corporate taxes to the state. "Of all 50 states, North Carolina uniquely benefits from the growing, production and sales of tobacco - it makes no sense to try to run these high-paying jobs out of our state, particularly during a recession," he said. Tommy Hickman, senior vice president of operations for R.J. Reynolds, highlighted how difficult it would be to replace tobacco jobs in the state. "Tobacco industry jobs pay about twice the state's average private-industry wages," said Hickman. "If you tax these jobs out of existence, where are these families going to find comparable jobs? We know what's happened to textile and furniture jobs in our state. Do we want the same to happen to tobacco jobs?" Hickman asked. The protest was joined by city mayors and representatives from the North Carolina legislature. Enditem