The very threat of punitive damages imposes a standard of caution on businesses and individuals. Otherwise, businesses and individuals may have little economic reason to act in the public interest. The tobacco industry's willful disregard for human life by using or hiding its knowledge of the addictive nature of nicotine will not be punished if the tobacco deal is approved. The precedent is awesome. Punitive damages are not tax deductible.
Shareholders bear the cost of corporate disregard for appropriate behavior.
The proposed deal would immunize the tobacco companies from this form of capital punishment. It also would make sure the public never knows the full nature of the tobacco companies' efforts to addict the public. It will be virtually impossible for individuals, insurance companies, labor union health plans or others to recover the full range of costs incurred as a result of tobacco-related disease. Mr. Chairman, some in Congress believe that this deal is the only or best chance we have to curb the scourge of tobacco. When someone tells me I have to buy today because a deal this good won't last, I get very suspicious.