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WARNING: This site deals only with the corporate corruption of science, and makes no inference about the motives or activities of individuals involved.
    There are many reasons why individuals become embroiled in corporate corruption activities - from political zealotry to over-enthusiastic activism; from gullibility to greed.
    Please read the OVERVIEW carefully, and make up your own mind.




TOBACCO INDUSTRY EXPLANATORY

ABBREVIATIONS
JARGON
SPIN-MEISTERS
INITIALS
FIRST & NICKNAMES
Misc.RESEARCH HELP
Smoking-Gun docs.

RELEVANT LINKS
Cash-for-comment economists' network
General TI networks
George Berman
James Savarese
Ctr.Study Pub.Choice
James Buchanan
Robert Tollison
Anna Tollison
Richard Wagner
James C Miller III
Carol M Robert
Elizabeth A Masaitis
Committee on Tax & Economic Growth
Harold Hochman
Fred McChesney
Thomas Borcherding
Delores T Martin
Dennis Dyer
George Minshew
William Prendergast
Bill Orzechowski
CASH-FOR-COMMENT
NETWORK MEMBERS

Dominick Armentano
Burton A Abrams
Lee Alston
Ryan C Amacher
Gary Anderson
Lee Anderson
William Anderson
Terry Anderson
Roger Arnold
Richard W Ault
Michael Babcock
Joe A Bell
Bruce L Benson
Jean J Boddewyn
Peter Boettke
Thomas Borcherding
William J Boyes
Charles Breeden
Lawrence Brunner
Henry N Butler
Bill Bryan
Cecil Bohanon
Morris Coates
Roger Congleton
Jeffrey R Clark
Michael Crew
Allan Dalton
John David
Michael Davis
Arthur T Denzau
Clifford Dobitz
John Dobra
Randall Eberts
Robert B Ekelund
Roger L Faith
David Fand
Susan Feigenbaum
Clifford Fry
Lowell Gallaway
Celeste Gaspari
David ER Gay
Kenneth V Greene
Kevin B Grier
Brian Goff
Sherman Hanna
Anne Harper-Fender
Kathy Hayes
Dennis Hein
James Heins
Robert Higgs
F Steb Hipple
Harold M Hochman
George E Hoffer
John Howe
William Hunter
Stephen Huxley
John D Jackson
Joseph M Jadlow
Cecil Johnson
Samson Kimenyi
David Klingaman
Michael Kurth
David Laband
Suuner Lacroix
Dwight R Lee
Dennis Logue
C. Matt Lindsay
Donald P Lyden
Craig MacPhee
Mike Maloney
Delores Martin
Chuck Mason
Charles Maurice
Fred McChesney
James E McClure
William McEachern
Richard McKenzie
Robert McMahon
Arthur Mead
Paul L Menchik
John F Militello
William C Mitchell
Greg Neihaus
James A Papke
Allen Parkman
Mark Pauly
William Peterson
Harlan Platt
Michael D Pratt
Thomas Pogue
Barry W Poulson
Edward Price
Robert Pulsinelli
Raymond Raab
Roger Riefler
Terry Ridgeway
Mario Rizzo
Morgan Reynolds
Simon Rottenberg
Randy Rucker
Richard Saba
Todd Sandler
David Saurman
Mark Schmitz
Robert Sexton
William Shughart
Robert J Staaf
Thomas Stimson
Wendell Sweetser
Mark Thornton
Mark Toma
David G Tuerck
Richard Vedder
Bruce Vermeullen
Richard Wagner
J Keith Watson
Burton Weisbrod
Walter E Williams
Thomas L Wyrick
Bruce Yandle
Boon Yoon
Richard O Zerbe

 

 

OPINION ONLY

James August Papke    

(aka James K & W Papke — also called 'Leon' in one document.)

— A University of Purdue economist who worked briefly for the tobacco industry. He also worked with James Savarese, but who was not formally enlisted in the economists network. Cecil Bohannon and his associates at Ball State University did the heavy-lifting for the State of Indiana. —  

It is difficult to get a reasonable impression of the work that Professor James Papke did for the tobacco industry, because he also appears to have produced research reports that would not have enthused them — but which they may have considered to be the best deal they could expect. He appears to have been in favour of general sales and excise taxes at the state level, while being opposed to business taxes which lead to double-taxing.

He sent an extensive resume to the Tobacco Institute, so unless he was extremely gullible, he knew what he was doing supporting the cigarette companies.

Tobacco lobbyist James Savarese and Professor Robert Tollison of George Mason University had collaborated in the 1980s to provide the tobacco industry, through the Tobacco Institute, with networks of academics in various disciplines who would be willing to write and sprout propaganda material ... always provided the payments for these services were not directly traceable to the Institute or to any of the cigarette companies.

The aim was to have, in each State, at least

  • one academic economist,
  • one academic lawyer, and
  • one academic from a business management, business law, marketing or advertising discipline
willing to jump into action and write op-ed articles for their local newspaper or to appear at local ordinance or legislative hearings. Copies were always sent to any local Congressman who sat on some important (to the tobacco industry) committee.

The academics were always expected to wave their own and their university's credentials vigorously, and loudly proclaim their "independence' from any crass-commercial motives. And those who could boast of being 'non-smokers' were especially prized — since without this addiction, their non-dependent-on-tobacco status was thought to be proved beyond any doubt!

Unfortunately, it worked. Papke was briefly a part of this scam.

DISAMBIGUATION

There is also an Roger L Papke who does nicotine research, and more interestingly a Leon Papke (maybe close relative) who is the "former president of the National Tax Association" and who is critical of cigarette excise taxes.
    The archives also mention a James W Papke from Analyst Principle technology in Richmond (which could be the same person).

Some key documents

• His Resume was sent to the Tobacco Institute circa April 1985


1959–61: Assistant Professor of Economics, Wayne State Univerity


1961–64: Taxation Fellow, Claremont Graduate School, Claremont California


1962: Joined Purdue University as Faculty member: Associate Professor of Economics


1963 Jan 14: Albert E Haag, Executive Secretary of the Indiana tobacco distributors association has written to Ray Jones, Vice President of Philip Morris:

When I visited in your office, I informed you I was having copies made of Dr Papke's research figures. This report was to be presented to the Committee on Tax and Financing Policy. We are enclosing the completed report for your files.

    So far I have been successful in having the cigar and tobacco tax deleted from any recommendations to the Legislature. However, we have to be on constant watch to see that no hip pocket bill is presented from the floor.
[Note this is not necessarily James Papke, but it is certainly in the same area — although very early. This letter date is correct. (Maybe father?)]


1976–77: President of the National Tax Association - Tax Institute of America


1983 Feb: Indiana's revenue structure: major components and issues, edited by James A. Papke (at Purdue University).

This book contains ten papers discussing Indiana's revenue system.

    Individual chapters examine Indiana's economy, state and local tax burden, the individual income tax, the retail sales tax, the competitiveness of Indiana's business tax structure, etc.



1984 Nov 25 - 28: Seventy-Seventh Annual Conference on Taxation, sponsored jointly by the National Tax Association and the Tax Institute of America.

  • James A Papke presided over an NTA award and was a member of the conference committee. (past president)
  • Leslie E Papke of Michigan State University is on the Editorial Advisory Board of the National Tax Journal

[A Leon Papke is also mentioned with the NTA, but it is probably a misprint]

1985: The Tobacco Institute may have become interested in James Papke because he has a "computerized model" which can "calculate tax liability for specific firms including all major taxes and the interactions of state tax systems as they affect a multi-state company."



His resume was sent to the Tobacco Institute in mid-1985

.

1985 Oct: A newsletter "State Policy Reports" [Not specifically tobacco] has a note on Papke:

The most sophisticated approach to comparing business taxes is to calculate tax liability for specific firms including all major taxes and the interactions of state tax systems as they affect a multi-state company. Professor James Papke of Purdue University has a computerized model that does this, which has been used by some state tax study commissions


    A later document in the tobacco files gives further details of this computerized model (known as AFTAX) in a recommendation for the Californian Senate Committee on Revenue and Taxation


1986:

How independent is Independent ?
A recent Indiana study (James Papke, ed.) Indiana's Revenue Structure: Major Components and Issues, - Purdue University Office of Publications,) provides an exception.

    The study's sponsorship is interesting. State officials complain, from time to time, that the state universities do not provide policy-relevant research for them and, when they do, that they like to charge for it. This study was financed by Purdue. As Papke comments:
    "From the outset he (Purdue's acting president) envisaged the contribution the University could make to Indiana through research on its fiscal and economic affairs. Further, he expressed the view that the study should be conducted as a project of strictly independent and uninhibited research and that the authors have full and complete autonomy in the design of their work and in the presentation of their results."



1986 Feb 4: James Savarese gave testimony before the Senate Ways & Means Committee of the Ohio State Legislature on behalf of the tobacco industry. A note on page 9 (duplicated on page 21) references an "Outline of Testimony for this Committee" by Dr James A Papke, Professor of Economics and Public Finance, Director of Center for Tax Policy Studies, Purdue University


1986 Feb 7: James Papke has sent the Tobacco Institute a bill for

Services Rendered and Related Travel Expenses
(Re Subsitute House Bill 583 Ohio legislature)

    Total Services — 29.5 hours......... $8,850
    Travel Expenses + hotel            ...... $319

                TOTAL BILLING                   $9164.55




1986 April: A RJ Reynolds file holds a TI Evaluation report saying

James A. Papke (Purdue University):
This economist testified on a tax bill before the Ohio House Ways and Means Committee. Described as an "outstanding" witness with a good grasp of how this issue (tax hike) would affect the economy, he is rated as someone who could likely be used very effectively in any situation.

See summary


1986 Apr 8: The Tobacco Institute's administration wants some accounting and address details on Dennis Chinn, Greg Niehaus, James A Papke, Thomas Borcherding and many others


1986 Apr 22: Hurst Marshall at the Tobacco Institute is circulating draft material objecting to tax earmarking. One document notes "Dr James A. Papke, Director of Purdue University's Center for Capital Tax Policy Studies."


1986 July 3: Ellen Quinn in TI Accounting still has not received the required payment data for network economists Thomas Borcherding, Dennis Logue and Greg Niehaus. Her remarks must also apply to Papke

When requesting a payment for services, an honorarium, or a political contribution, please include the social security or federal ID number and the address of the recipient.



1986 Mar 9: The Tobacco Institute learns that a group in Ohio is planning to initiate a ballot initiative to earmark a new 4.5 cents per pack cigarette tax (plus tax increases on liquor) to pay for a new domed sports stadium. The TI plans to block the move through building local coalitions with retailers and the liquor companies: they have both their Strategy and Tactics worked out.

"Direct lobbying of the County Commissioners"
  • Develop series of private education meetings with Commissioners, i.e. James Saverese, Prof. James Papke, Bond Specialists.
  • Preparation of a summary statements and follow up letters for Commissioners from experts with whom they met.
"Bond Market Activities"
  • Arrange for experts, i.e. James Papke, James Saverese, members of rating agencies (Moody's, Standard & Poors) etc., to meet with members of bond market.
  • Publicly attempt to insure that bond rating are complete prior to placement of issue on the ballot.



1986 July 23: [See page 5 of 33] File note from Katherine Becker at the Tobacco Institute " Resource Evaluation — Trisler Interview"

At Bill Trisler's (BT) request, Public Relations provided an economic impact study on pending smoking restriction legislation in Michigan.

Marketing Resources [the local lobbying company] and Gary Neuhaus [sic Greg Niehaus] used the study "to educate the public and legislators" about the potential costs of restrictions through newspaper articles and legislative briefings.

    In BT's view, if Tobacco Institute sponsorship is identified, "red flags go up." Reaction is good if Institute sponsorship is not identified or if our representative has a "good relationship" with a legislator.

    Legislative reaction to presentation of the TI study by an industry ally will elicit a different response than if presented by TI, depending on who the ally is and who are the legislator's constituent groups.

Economist Witness
  • Dwight Lee (University of Georgia): A last-minute substitute to present legislative testimony, Professor Lee was rated by BT as having little, if any, effectiveness at the hearing on smoking restrictions. He was not familiar and/or comfortable with the obviously canned testimony he presented. Lee, apparently viewed as a "stranger" by some midwestern legislators, may be more effectively utilized in the southern states,
  • James A. Papke (Purdue University): This economist testified on a tax bill before the Ohio House Ways and Means Committee. Described by BT as an "outstanding" witness with a good grasp of how this issue (tax hike) would affect the economy, he is rated as someone who could likely be used very effectively in any situation,
  • Greg Neuhaus (University of Michigan): Having participated in editorial briefings and testified on a Michigan smoking restriction bill, Neuhaus was considered by BT as an intelligent witness with a quiet, very effective delivery. Neuhaus was viewed as "excellent" in responding to legislators' questions. He knew his material and did not have to search for the answers in the study.

    In Bill's view, it is very important for the economist witness to be a resident of the state in which he or she will testify. Industry opponents condemn The Institute for "big spending" when "outsiders" are brought into a state for a hearing.
[There is much more here on other similar expert 'resources']


1986 Aug 4: Bill Trisler (Regional VP of Chicago area) and Brooke Cheney (Ohio lobbyist with Governmental Policy Group in Columbus) have met with Bill Buckley of Washington DC's Tobacco Institute office re. plans for countering a cigarette excise tax increase in Cuyahoga County (Ohio)

    A Short-term project rolled out to counter the tax increase is to "Determine advisability and timing of retaining additional legal and/or bond market expertise ie) D'Angelo, Dr Papke, etc."

    Papke's contact was with Pete O'Grady the Tobacco Institute's retained legal counsel.


1986 Aug 18: The Regional Vice Presidents (RVPs) and Regional Directors (RDs) of the Tobacco Institute in charge of various areas have supplied comments on their Economic Witnesses. Six of the RVPs thought it important that the economist was a resident of the State, "Ideally associated with the State University", while three did not, provided they were "presented to the legislators by a 'credible... organization' (e.g. chambers of commerce, labour union)." [Provided they hid their tobacco industry backing behind a front organization.] The consolidated and encapsulated comments included:

Region III
Dwight Lee (University of Georgia):
A last-minute substitute to present legislative testimony, Professor Lee was rated as having little, if any, effectiveness at the hearing on smoking restrictions. He was not familiar and/or comfortable with the obviously canned testimony he presented. Lee, apparently viewed as a "stranger" by some midwestern legislators, may be more effectively utilized in the southern states.


James A. Papke (Purdue University):
This economist testified on a tax bill before the Ohio House Ways and Means Committee. Described as an "outstanding" witness with a good grasp of how this issue (tax hike) would affect the economy, he is rated as someone who could likely be used very effectively in any situation.


Greg Neuhaus [sic Neihaus] (University of Michigan):
Having participated in editorial briefings and testified on a Michigan smoking restriction bill, Neuhaus was considered an intelligent witness with a quiet, very effective delivery. Neuhaus was viewed as "excellent" in responding to legislators' questions. He knew his material and did not have to search for the answers in the study.



1986 Sep 26: The budget and accounts for the Tobacco Institute, sent to James Cherry (on the Committee of Counsel of the institute) shows that J Papke was paid $9,400 for his efforts in Ohio.


1987 Aug 3: He was Director of Purdue University's Center for Capital Tax Policy Studies. He argued that while taxing consumer services to individuals is warranted, taxing business services could lead to double taxation and could discriminate against companies that rely on outside consultants.


1987 Jan: The Herald-Argus editorial (La Porte, Wogan City) puts its weight behind the tobacco companies rather than taxes to support the education system.

The facts of tax inequities are there, Purdue economist James Papke notes in his study of Indiana taxes that Indiana households with $34,000 anual income pay about nine and a half percent toward taxes, while households with $100,000 income and more pay about six percent towards taxes,"



1987 Jan 1: The Indianpolis News carries a story "ISTA has $502 million program for education." The ISTA [Indiana State Teachers Association] has commissioned James Papke to conduct a study on the regressive nature of the state's taxes with a view to better budgeting for education.
[However his recommendations wouldn't have pleased the tobacco industry.] He recommends:

  • Income tax rise from 3 to 4%
  • Corporate income tax rates to equal personal rates
  • Local property rates
  • Excise tax on cigarettes up by 2 cents to 12.5 cents.
Recommendations were based on findings in a new study by Dr James K. Papke, director of the Center of Tax Policy Studies at Purdue University. Papke concluded that Indiana taxes are regressive in nature.

    "In all measures of tax burden, Indiana is in the lowest ranking compared, to other states," Papke said during the press conference."lndiana currently is not using its full capacity of taxing." Papke's report was commissioned by ISTA.


    He also noted that the taxing system was already highly regressive (not just through excise taxes):
The facts of tax inequities are there. Purdue economist James Papke notes in his study of Indiana taxes that Indiana households with $30,000 annual Income pay about nine and a half percent toward taxes; while households with $100,000 income and more pay about six percent toward taxes.



1987 Jan 16: One of the tobacco industry's lawyer lobbyists writes to Bill Trisler in Indiana asking if he can get a copy of Papke's tax study, so they can get the Citizens for Tax Justice (CTJ) to prepare a report. [Obviously not knowing that both Papke and the CTJ were tobacco industry lackeys.]

    He was refering to the Indiana State Teachers Association (ISTA) recommendations for a wider tax structure (general sales taxes, rather than just excise on cigarettes).

Recommendations were based on findings in a new study by Dr James K. Papke, director of the Center of Tax Policy Studies at Purdue University. Papke concluded that Indiana taxes are regressive in nature.

    "In all measures of tax burden Indiana is in the lowest ranking compared, to other states," Papke said during the press conference."lndiana currently is not using its full capacity of taxing." Papke's report was commissioned by ISTA.

    The governor proposes broadening the sales tax base to pay for his $372 million package. ISTA's $502 million education program calls for about $130 million more than the one requested by Gov. Robert Orr and State Superintendent of Public Instruction H. Dean Evans.

[It's a bit difficult to work out which group he was working for ?]

1987 Apr: /E The National Council of State Legislators (NCLS) are holding their annual conference. [Mid-Western States?]. James Papke is speaking on "The Service Sector: Fair Prey for Taxation" before the Federal Budget and Taxation Committee and the Fiscal Affairs and Oversight Committee.


1987 May 22: Bill Trisler sent his evaluation of economic witnesses for Region III to George Minshew at the Tobacco Institute.

INDIANA
Professor Cecil Bohanon, Department of Economics Ball State University, Muncie, Indiana
During the time of the mobilization for the defeat of the tax bills in the Indiana General Assembly, it was the wishes of our Indiana counsel that we not use an economic witness. Therefore, I made no attempt to make this contact.

    Our counsel did express that, should an economic witness be useful, their choice would have been the following:

Professor James A. Papke, Department of Economics Herman C. Krannert Graduate School of Management Purdue University, West Lafayette, Indiana PH: (317) 494-4442
This recommendation is due to the fact that we used this individual for testimony in Ohio, on behalf of the Institute, in 1986.

    This individual was very effective and I have had the opportunity to communicate by phone, but never had the opportunity to "break bread" with him because of my schedule in the past year.



1987 Sep: (Summer) StatesID newsletter carries an item:

Dr James Papke, professor of economics and director of the Tax Policy Center at Purdue University, strongly endorses sales taxes on consumer services. But he cautioned state legislators at their annual meeting in Indianapolis this July against taxing business to business services.

    A sales tax is on consumption by the final consumer and should be used for that purpose, says Papke. He continues to say that a sales tax on business services is a hidden business tax and would distort prices.."There is no such thing as a benign business tax;" concluded Papke.

[Papke was probably far too independent for the tobacco industry. He was in favour of extending the excise taxes on goods, to services — provided these weren't business services.]

1988 Apr 11: The California Taxpayers Association is promoting

A conference on business tax incentives and state economic development, co-sponsored by the National Tax Association [run by James Papke] and the Midwestern Legislative Conference of the Council of State Governments, will be held May 13 - 14 in Chicago.

    Among those making presentations at the conference will be Frederick Stocker, Executive Director of the National Tax Association; Robert Mattson, Director of Taxes for IBM; James Papke of Purdue University; Howard Doerr, Executive Vice President of US West, and William R. Brown, President of the Council of State Chambers of Commerce.

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