Tobacco buyout legislation would bring $4.5 million

A total of 537 people in Alleghany County ZIP code areas would receive payments totaling about $4.5 million over a five-year period if a proposed $9.6 billion buyout of Depression-era tobacco subsidy programs is approved. The plan passed in the U.S. House of Representatives June 17, attached to a Corporate Tax Relief Bill; however, the bill may face challenges in the Senate.

A non-profit group opposed to the buyout, Environmental Working Group (EWG), acquired information on individual payouts from the U.S. Department of Agriculture and posted them on its website at www.ewg.org. A complete list of everyone in Alleghany scheduled to receive payments under the buyout is included.

Local residents would receive payments ranging from $218,955.85 to $9, according to data from EWG.

Nationwide, the $9.6 billion would be paid out in equal installments over five years: $7 per pound for those owning quota and $3 per pound for growers leasing quota. Payments would be based on the amount of quota owned in 2002. In exchange, the bill would eliminate tobacco program that controls crop prices and sets quota levels.

The buyout would be funded with 10 cents from the existing 39-cent-per-pack federal excise tax on cigarettes. Supporters of the House plan say this is fair because it taxes tobacco users.

The payouts were broken down by ZIP Code on the website. Alleghany County contains seven ZIP Code areas.

Get the rest of this article in this week's issue of the Alleghany News! Back