Proposed Tax on Soda: Effective Weapon to Fight Obesity?
According to a NYT article, Proposed Tax on Sugary Beverages Debated, a new debate is going on in Congress over a possible tax on sugary soft drinks. Health advocates hope the tax will help curb consumption of sugary beverages and inevitably help fight obesity nationwide. The tax would apply to "soft drinks, energy drinks, sports beverages and many juices and iced teas - but not sugar-free diet drinks". The proposed tax of a penny an ounce could raise approximately $14.9 billion the first year which could then be put towards health care reform.
Although scientists, doctors, and policy makers argue the tax could be a "powerful weapon in efforts to reduce obesity", many skeptics question its impact and it's overall acceptance.
The American beverage industry, on the other hand, worries how this proposed penny an ounce tax could impact their bottom line. Chief executive of Coca-Cola when asked about the tax responded by calling it "outrageous", and later went on to say “I have never seen it work where a government tells people what to eat and what to drink...if it worked, the Soviet Union would still be around.”
With the average 2-liter soda being sold at $1.35 at 67.6 ounces, the new tax would add 50% to this price, and a 45% increase in price to a 12-can case. Research on price elasticity of soft drinks found that for every "10 percent rise in price consumption declines 8 to 10 percent".
Skeptic Kevin Keane of the beverage association argues “when it comes to losing weight, all calories count, regardless of the food source,” Mr. Keane said. “The bottom line is that the tax isn’t going to make anybody healthier. It’s not going to make a dent in a problem as complex and serious as obesity, and we’re certainly not going to solve the complexities of the health care system with a tax on soda pop.”
What do you think? Do you think a beverage tax could have a direct effect on national obesity? Would you support such a tax? Would a 50% increase in price curb your beverage consumption? How do you feel about this idea of the government trying to influence what you eat or drink?
Although scientists, doctors, and policy makers argue the tax could be a "powerful weapon in efforts to reduce obesity", many skeptics question its impact and it's overall acceptance.
The American beverage industry, on the other hand, worries how this proposed penny an ounce tax could impact their bottom line. Chief executive of Coca-Cola when asked about the tax responded by calling it "outrageous", and later went on to say “I have never seen it work where a government tells people what to eat and what to drink...if it worked, the Soviet Union would still be around.”
With the average 2-liter soda being sold at $1.35 at 67.6 ounces, the new tax would add 50% to this price, and a 45% increase in price to a 12-can case. Research on price elasticity of soft drinks found that for every "10 percent rise in price consumption declines 8 to 10 percent".
Skeptic Kevin Keane of the beverage association argues “when it comes to losing weight, all calories count, regardless of the food source,” Mr. Keane said. “The bottom line is that the tax isn’t going to make anybody healthier. It’s not going to make a dent in a problem as complex and serious as obesity, and we’re certainly not going to solve the complexities of the health care system with a tax on soda pop.”
What do you think? Do you think a beverage tax could have a direct effect on national obesity? Would you support such a tax? Would a 50% increase in price curb your beverage consumption? How do you feel about this idea of the government trying to influence what you eat or drink?
Replies to This Discussion
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Permalink Reply by Janeen on -
Oh boy Lisa, I love my soda! I don't drink it too often but I do have some a couple times per week. I switch off between diet and the high calorie stuff. I know I should give it up all together, but it's something that I like and I look at it as a treat.
As far as the tax goes, I'll start off my saying that I'm not for it. I don't think the government should take a product that they don't feel the American people should have and tax it so much that it becomes to expensive to buy. I also think that this tax messes around with our free market. But having said that, I do think it will stop some people from drinking soda because they aren't going to want to spend the extra money on it. But will it stop people all together? NO. Just look at the price of cigarettes and look at how many people are still smokers. We have educated and educated about the dangers of smoking and we've taxed cigarettes sky high and lately I've seen MORE people smoking than I have in years past. Vices are not any easy thing to give up. You can not legislate people to do the healthy thing or the right thing. Prohibition didn't work. Taxing doesn't seem to work.
We have a problem with obesity in the country. It scares me! But what are they going to tax next? Chips? Fast Food? Soda is only part of the problem. I think taxing soda would be like putting a band aid on a gun shot wound.
Besides, I make my own soda. I don't think they could tax that, could they?
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Permalink Reply by Bare Believer on -
I like your metaphor of "putting a band aid on a gun wound." I think it describes this situation perfectly :) Also, i don't think they could tax your soda if you make it from home, but I could see the gov trying to tax the flavored syrups needed for the process.
Do you have the soda maker by SodaStream? I had that one too, but bc I swore off fake sugar and would never touch real soda with a mile-long stick, I gave the machine to my friend. Plus, those gas tanks got to be annoying to refill.
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Permalink Reply by Bare Believer on
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Hi! I think that in theory, this new tax sounds great, but in reality, it's not going to improve the health of society, especially since sugar-free drinks will avoid the tax. One thing that many people don't realize, is that "less calories" does NOT equal "more healthy." Sugar-free drinks may not have the empty calories of sugar (which is unarguably useless), but they do have the negative health side affects of fake sugar.
Aspartame - most other chemically created fake sugars - is very dangerous and a huge source of indirect weight gain. When these substances are ingested, the body thinks it is really getting sugar in its system... your stomach produces the enzymes needed to break down sugar, your brain and nerve receptors think they are getting that source of energy and react accordingly, and your emotions are expecting the natural high that sugar induces. It's like you're teasing your body which makes it very unhappy. To make up for this lack of sugar that the body expected, it actually does something so that you experience sugar cravings (I don't know the exact process or jargon here, so can't explain what happens or why). In the end, you will try to satisfy your craving, either by succumbing to some form of simple carb sugary snack or by eating foods you label as "good" or "healthy" but end up overeating them due to lack of satisfaction.
Overall, the end result is the same, if not worse, as if you were to just have a full-sugar drink to begin with. Honestly, I think the only solution to the nation's obesity is to teach and practice "anything in moderation." Ya, some foods hold more nutritional value than others, but that doesn't mean that eating a whole carton is healthy.
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