Soda Sin Tax: Does This Make Sense?: Will it reduce obesity? Burden the poor?

Daily Green Busybody ^ | December 17, 2008 | Marion Nestle

[Eric Blair 2084]

Governor Paterson says he can raise $404 million in state revenues with a 15% tax on soft drinks (but not diet sodas, juices, milk, or water).

The relevant section of the statute reads:

"Create Sales Tax on Soft Drinks. Imposes an additional 18 percent rate of sales and compensating use taxes on fruit drinks that contain less than seventy percent of natural fruit juice and non-dietetic soft drinks, sodas and beverages. By increasing the price, it will discourage individuals, especially children and teenagers, from excessive consumption of these beverages. Revenues will be directed for health care initiatives."

And here’s the American Beverage Association’s predictable response: hurts the middle class, nobody wants it, no science or logic behind it.

It will be interesting to see how this plays out. For example, the maker of a carbonated juice drink wrote me to complain that her product, which is 50% juice and taxable, contains under 70 calories per 8-ounces in comparison to non-taxed 100% fruit juice at 110 calories/8 ounces. Obesity is about calories, no? Or is it really about the kinds of products people habitually drink?

I’m curious to know what you think of this idea. Please weigh in.

[TheWasteLand]

Next, we'll move on to the ugly.

I don't like ugly people either. It's a little known fact, but 92% of ugly people eat kittens.

[autumnraine]

“Revenues will be directed for health care initiatives.”

Ok, so this lets us know that it isn’t about raising money in a budget deficit, but about punishing people.

[omega4179]

They voted Dem they voted FOR taxation.

[lacrew]

Not that it should really matter, as far as taxes go; but, diet soda is not necessarily healthier than regular soda. There is gathering evidence that the artificial sweeteners cause an increase in appetite.

In fact, every decade or so, a new artificial sweetener turns out to be cancer causing. I just think the notion that diet drinks are healthier is junk science.

BTW, if the reasoning for taxing non-diet drinks is tied to preventing future nanny-state health care expenses...why tax the gym membership?

This is truly insane. There seems to be nothing that isn’t elible to be taxed.

[4Speed]

15 % is NOT going to stop anyone. A little Truth here. . . Its a Tax not a deterrant to anything.
75 % might stop someone . . .while starting a black market.
Dems are Dim, as raising taxes will decrease Revenue . . The legislatures are asking for Replacements next election cycle if they do this . . .TAXING KIDS ? Fat or skinny is reaching too far. Cut Govt. down to a 100 billion. . .or else the citizens will cut You.

[pandoraou812]

I am sick of being taxed. I really resent more taxing. I think the govt should stop bailing out companies & give some money back to we the people who have paid endless taxes for so many things. That way we could pay our bills & spend money. I resent these huge companies CEO's getting huge bonus checks. While this year my husband is out of work & who knows when he will get more work as he is self employed. If the govt gave all of us some money then people could get their kitchens & bathrooms tiled & he would have work. I don't see anyone bailing out people like him. So we pay sin taxes & now maybe taxes for soda, will taxing our air be next?? Sorry for the rant.

[Eric Blair 2084]

Diet soda is actually correlated more with obesity than regular soda. At least heavy consumption of diet soda is, iirc.

There is a positive correlation and we both see it but it's just another bogus study. We both see hundreds of people who have a Whopper with Cheese and fries for lunch every day, but think if you order a diet soda it's ok.

It's the same bogus study that would lead one to believe the aspirin causes headaches. People with headaches take aspirin....people who don't have headaches don't take aspirin...aspirin apparently causes headaches.

[KevinDavis]

I’m against it period.. I don’t like to use taxes as a social engineering tool

[freekitty]

I have always wondered how people can drink a diet soda and eat a Big Mac at the same time.

[DannyTN]

There are several problems with this. I'm ok with taxing unhealthful activities or products. But they have to have the science right, and too often it's based on junk science.

• Scientific studies have shown people gain more weight on diet drinks (artificial sugars) than they do non-diet drinks. So they should tax the diet drinks even more.
• Scientific studies have also shown contrary to popular opinion that people who are a little overweight actually live longer than thin people. It turns out the overweight have a greater chance of dying of heart disease than thin people, but thin people have a greater chance of dying from almost everything else, and this was true after smoking was eliminated as a factor.
• We've seen too many junk science or politically/commercially influenced science in the health food arena. We were told eating fat was bad, then that most of the critical vitamins were fat soluable and you needed fat. We were told eating eggs would raise cholesterol, and then told it really has minimal impact. We were told Margarine and Transfats were healthy and now we are told nothing clogs arteries faster. They need at least another hundred years of science before government starts telling us what constitutes healthy food.

[eXe]

Laws like this wont reduce Obesity, it will INCREASE people trying to avoid paying taxes and it will increase people buying soda out of state and “smuggling” it back in.

[DannyTN]

"It's a little known fact, but 92% of ugly people eat kittens. "

Then tax kittens.

[patton]

You are correct, but don’t mistake it for causation.

It seems the fatties know they eat too much, so they drink diet sodas.

IOW, being overweight causes diet soda consumption.

[Taffini]

not to mention buying your car out of state and your local car dealership losing your business.

[Eric Blair 2084]

Jobs? Taxes? Crime? Terrorism? Who cares? Let's focus on what really matters. You can live to be 109 and be unemployed and miserable in this healthy socialist utopia where you are a perpetual child.

[Ken H]

High time we socked it to Big Soda!

[sfvgto]

Sounds good.......lets have a wheelchair tax! It will discourage people from having accidents

[Eric Blair 2084]

I'm ok with taxing unhealthful activities or products. But they have to have the science right...

I respect your liberal progressive opinion, but if you believe that using Gubmint policies to coerce people to behave the way THEY want is OK, you are not a conservative. You are in the wrong place.

[zadox]

Back in 1991 CA passed a “snack tax”. It was a concentrated blast of supercharged irrationality. How do you determine what is and what is not a “snack”? It lasted all of a year before it was repealed. This soda tax may pass but it will face the same fate... I hope... bottom line: people need to be responsible for their own diatary choices.

[Will88]

“I’m against it period.. I don’t like to use taxes as a social engineering tool.”

I don’t favor punitive taxes such as the very high cigarette tax in NYC and other places. But reasonable taxes on items that do cause social and health problems is not social engineering. Such taxes have been around for decades, and they should be added to high sugar products because sugar contributes to many health problems. The more someone uses of these products, the more they risk some problem.