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Robin Shreeves

D.C. passes confusing soda tax

Let’s hope DC residents drink enough unhealthy beverages to pay for the Healthy Schools program.

Thu, May 27 2010 at 9:27 AM EST
 6

sodas Photo: poolie/Flickr
I really don’t understand the rationale behind soda taxes. According to The Slow Cook blog, yesterday Washington, D.C., dumped a proposed “soda tax” in favor of a tax on … soda and other soft drinks. You can’t make this stuff up.
 
In reality, what happened was that the city council changed the way the tax would work so that the shelf price of sodas and other soft drinks wouldn’t go up. The tax is levied at check-out and only shows up on the receipt.
 
There’s an estimated amount of money that the tax is expected to raise — $7.92 million annually. The money will go to fund D.C.’s Healthy Schools program.
 
What exactly is the purpose of the tax? Is it to raise money or curb consumption of unhealthy beverages?
 
Councilmember Mary Cheh (D-Ward 3) believes it will curb consumption, so she is going to continue to press for the original tax that would have added a penny per ounce of beverage because “it’s good health policy.”
 
Explain to me how a tax that is supposed to help curb the consumption of something is then expected to raise a certain amount of money. The reasoning behind these taxes is so convoluted.
 
One thing yesterday’s approved tax does that it wouldn’t have done in its previous form is tax artificially sweetened soft drinks. I’ve always been perplexed when any proposed soda tax is said to be a way to help people get healthy and prevent obesity, but artificially sweetened drinks are excluded from the tax. The dangers of artificial sweeteners may be debated, but study after study has shown that people who drink diet soft drinks usually have an equal or better chance of being overweight than those who don’t. It just never made sense to me to exclude diet drinks if the true reason for these taxes is to promote public health.
 
I’ve got a question for all of you reading this: Do you have a good reason to believe that any soda tax will curb consumption of unhealthy soft drinks and make people healthier? I’d love to understand your reasoning. Really, I would.
 
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Related Topics: Food, Health, Politics, Schools, Taxes

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anonymous
Peckerhead 05/29/2010 16:13 PM

How is taxing soda consumption any different than selling carbon credits? First off, I don’t think Government should be telling people what they should eat, drink or smoke, but with that said; let’s look at the folly of this position. If something is truly bad for society like smoking cigarettes, why isn’t it banned instead of taxed? That is if the goal is to eliminate the usage of the item instead of generating revenue! Ditto carbon credits. If we are to believe the environmentalist that.... More

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anonymous
revelator 05/29/2010 15:09 PM

"I really don’t understand the rationale behind soda taxes" But, I bet you are for carbon taxes and carbon credits?

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anonymous
Liberator 05/29/2010 16:20 PM

How is taxing soda consumption any different than selling carbon credits? First off, I don’t think Government should be telling people what they should eat, drink or smoke, but with that said; let’s look at the folly of this position. If something is truly bad for society like smoking cigarettes, why isn’t it banned instead of taxed? That is if the goal is to eliminate the usage of the item instead of generating revenue! Ditto carbon credits. If we are to believe the environmentalist that.... More

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estaples
estaples 05/27/2010 19:07 PM

I do think that proposing a tax on unhealthy foods will implement a national health trend. Only the diehard fans of sugary sodas will continue purchasing a more expensive drink. The indifferent consumers desiring a drink will think twice about purchasing a more expensive commodity. Also, regarding the statement "The tax is levied at check-out and only shows up on the receipt." Isn't that how most taxes are implemented anyway? It's a poor argument.

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anonymous
Amy 01/18/2011 14:20 PM

"The tax is levied at check-out and only shows up on the receipt."

I took that to mean that the alternative was taxing the companies, who would then raise the price of soda, or something along those lines. But I could be totally off on that!

I don't think the tax will make a significant difference. People will just be smarter about when they buy their sodas and only do so when it's on sale. Alternatively, some will find other unhealthy drinks.

A penny per ounce of.... More

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anonymous
Mandy 05/27/2010 13:11 PM

If you want to understand, take a look at the case of the tobacco tax. Even though tobacco is highly addictive (sugar is addictive too, but not as much), the tax lowered the consumption of cigarettes and the rates of lung cancer. These are facts.

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