The New Soda Tax

The Senate Finance Committee is considering imposing a new tax on soda and other naturally sweetened drinks to help pay for the Health Care Reform. The committee states the taxes would slow sales of unhealthy products that contribute to rising medical costs.

Thomas Frieden, director of the Centers for Disease Control and Prevention states that "obesity is a growing problem and taxpayers pay for half the cost through Medicare and Medicaid and soft drinks are the single largest contributor. A penny-an-ounce tax could reduce consumption by more than 10% and raise $100 billion over 10 years".

Early this year, a public uproar forced Governor Paterson of New York to abandon his plan for an 18% state tax on soda and other sugary drinks. Last year a proposal caused Maine voters to halt a plan that would impose a tax on soda. Arkansas, Missouri and California have considered the idea in the past.

This fall, San Francisco Mayor Gavin Newsom will introduce legislation that would charge a fee to retailers that sell sugary drinks. Mayor Newsom legislation would charge grocery stores but would not affect restaurants that serve sodas.

A September study released by UCLA showed a link between soda and obesity and found that: adults who drink at least one soft drink a day are 27% more likely to be obese than those who don't, soda consumption is fueling California's $41 billion annual obesity problem, 41% of children ages 2-11 drink at least one soda every day, 62% of teens 12-17 drink at least one soda every day, 39 pounds of sugar are consumed in a year if you drink one soda a day and 17 teaspoons of sugar is contained in a 20-ounce serving of soda.

President Obama has said he is open to the idea of a tax on soda and other sugary drinks. "I actually think it’s an idea that we should be exploring,” President Obama said in a recent interview. “There’s no doubt that our kids drink way too much soda."

Michael Jacobson of the Center for Science in the Public Interest stated that "soft drinks are the only food or beverage that has been shown to increase the risk of overweight and obesity, which, in turn, increase the risk of diabetes, stroke, and many other health problems".

Health care reform is expected to cost as much as $1 trillion over the next ten years. The Congressional Budget Office estimates that a three-cent tax on soda would generate $24 billion over the next four years.

According to the American Journal of Clinical Nutrition a 12 ounce soda has 150 calories and 40-50 grams of high fructose sugars equal to 10 teaspoons of sugar. Think twice before buying your next soda.