Friday, March 28, 2014

In Perpetuity

Perpetuity
1: Eternity
2: the quality or state of being perpetual -bequeathed to them in perpetuity-
3: a: the condition of an estate limited so that it will not take effect or vest within the period fixed by law
b: an estate so limited
4: an annuity payable forever
For those of us who have been scratching our heads as to why so many government officials have publicly stated their opposition to e-cigarettes and to all forms of THR in general, I have this lovely gem of an article that arrived in my inbox via Google alerts today:
Gov. Rick Snyder is asking lawmakers to ease reductions in city of Detroit retirees’ pensions and save Detroit Institute of Art masterpieces by tying up $17.5 million annually in the next two decades from the national tobacco settlement — which brings Michigan $250 million to $350 million a year in perpetuity.

From The Detroit News: Tobacco Money Not Going Where Intended

This tends to explain a lot now doesn't it? Forgive my redundancy, but the MSA does not lend it self to harm reduction, and it's easy to see why. If the majority of smokers where to become receptive to the various forms of THR that are fast becoming available, what would happen to all of that dependable revenue that continues to floweth down the stream that never ends? ....and keep in mind that we're not even talking about all of the excise taxes that are piled on top of what has already become a mountain full of dollar bills:

Cigarette Taxes-The Adult Smoker's Burden


It's all about the money....always has been, always will be.

5 comments:

  1. Um..... I had in mind that the MSA was for a period of 25 years, J.

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    Replies
    1. That''s not how I understand it Junican....at least according to what I have read. ...What have you read about the MSA?

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  2. States Will Recover Over $206 Billion

    "Payments will be made to settling states and a national foundation, and for administration and enforcement purposes.
    Distributions directly to states will be made based on percentages agreed to by Attorneys General.
    In 1998, it was projected that Pennsylvania would receive $11.2 Billion over the next 25 years."
    From here:
    http://www.attorneygeneral.gov/consumers.aspx?id=683

    Also,
    "Strategic Contribution Fund Payments of $8.610 Billion

    On April 15, 2008 and on April 15 each year through 2017, the companies will pay $861 million into a strategic contribution fund.
    Money from the fund will be allocated to states based on a strategic contribution formula developed by Attorneys General no later than June, 1999. The allocation formula will reflect the contribution made by states toward resolution of the state lawsuits against tobacco companies."

    I found that, but it is not where I saw the 25 year stipulation. I don't know where I first saw it.
    "In perpetuity" would be odd for a settlement which is supposed to pay for the damage done by tobacco company lies in the past, and which is limited in time by, at most, the lifetime of those who were injured.
    If the 25 year limit is right, then the agreement will terminate around 2024, which is still a good way off!

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    Replies
    1. Check this out Junican:

      Over a 25-year period, the states will receive up to $246 billion from tobacco companies through the MSA and four other individual state settlements that can be used to support anti-smoking efforts. Future annual payments, based upon inflation and cigarette sales, will continue in perpetuity.

      Master Settlement Agreement

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  3. "(e) Supplemental Payments. Beginning on April 15, 2004, and on April 15 of each year thereafter in perpetuity, ......
    for the benefit of the Foundation its Relative Market Share of the base amount of $300,000,000, ....."

    Weird!
    the whole thing is awfully complex. I suppose that one would have to study the document thoroughly to get to the bottom of it.
    It looks as though some payments are limited by time and some are not. I'm not sure. It may be (???) that payments associated with historical harm are limited, but 'education' of youth is not.
    I'm about 20% of the way through the document. I'll see if I can get a bit further later on ....

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