Projo Fitness Blog

ATLANTA (AP) -- In a bid to ramp up the public health battle against obesity, a group of nutrition and economics experts are pushing for a tax of 1 cent on every of ounce of sodas and other sweetened beverages.

Proposals for a hefty soda tax though have repeatedly fallen flat. The idea was even floated as a way to help pay for health care reform, but government officials on Wednesday said that's not likely to happen.

The experts' plan was released by the influential New England Journal of Medicine, in a health policy article by Arkansas' surgeon general, New York City's health commissioner and five national experts on health and economics.

A soda tax would generate tax revenue while discouraging people from consuming extra calories, the authors contend. They cited a series of studies that showed higher rates of obesity and diabetes among women who drank more sugar-sweetened beverages. They argue that a steeper soda tax would borrow the same strategy that helped drive down cigarette smoking while bolstering government revenues.

But a golden opportunity for enacting a national soda tax apparently slipped away Wednesday, when the Senate Finance Committee released its health reform proposal without a previously considered soda tax provision.

The House of Representatives' health-reform bill also is without a soda tax. And a White House spokesman on Wednesday said President Obama is not going to ask for Congress to put a soda tax in.

The politics of health reform are too delicate right now to provoke an attack from the sugar and beverage industries, said Kenneth Thorpe, a health policy researcher at Emory University.

"They're at such a fragile place, introducing anything new and big like that into the mold is not likely to happen," said Thorpe, who served as a federal health policy official under President Bill Clinton.

Taxes on soda aren't new: 33 states charge sales tax on soft drinks. But generally they are fairly small, with the average soda tax rate being 5.2 percent. On a 12-ounce can of soda that costs $1, that translates to about 5 cents.

The latest proposal in Thursday's issue of the medical journal calls for a 1-cent-per-ounce sales tax, an amount more than double the average state tax. It would increase the levy on that $1 soda can to 12 cents.

 Tags  health-care debate obesity sales tax soda

Comments

storm said:

All sodas and pastries should be removed from eligibility list for food stamp program.

Link | September 21, 2009 8:21 AM
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Glenda said:

I took inventory last night of each bottle of (non-diet-taxable) soda I have in inventory. It would cost me 844.40 – Oh—yes—I can hear you now—I pass it on to the consumer. While that is true—I would pay it up front to the wholesaler—it is dead capital I would have tied up 100% of the time. That means I would HAVE to reduce other inventory by that amount. Or–that means I have to adjust my labor—cut at least 1 job. Being small enough—I could pull one off payroll. That means the 7.65% X 2 doesn’t go into the social security till. Also—I wouldn’t pay my share of UI, W/C, etc. Forced illegality.

Oh—yes—I can hear, again, some of you saying—but the government picks up that obese health costs. Let’s face it—much of that is due to the poorer class not being educated or adhering to proper food and beverage choices. SNAP (food stamps) ALLOWS for the purchase of soda, candy, confections, chips and ice cream. We are not allowed to charge the NYS 8% sales tax on SNAP purchases. We back it out at the register. BUT—any pre-paid tax or fee—meaning paid up front to the wholesaler—does NOT get backed out. So—who in heck will pay for this? The feds will pay the state—it’s called a shell game with an extra administrative cost. Then—once the realization happens—how this is reducing the SNAP allotment—the feds will raise it. Again—who in heck pay for this?

Link | November 8, 2009 5:28 PM
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