How can you raise revenue and combat obesity at the same time? In the case of Washington, it passed a state tax on soda and other sugary beverages (2 cents per 12 oz.) back in April. Now the American Beverage Association is helping to fund an initiative to repeal the tax.
I doubt this tax would work in Wisconsin. A somewhat similar example is the beer tax, which is proposed every few years or so (most recently by Rep. Berceau) and ALWAYS fails, unsurprisingly. That tax called for 2.4 cents per 12 oz. at the manufacturers’ level, which means by the time it goes through the distribution channels, consumers could be looking at an increase of 50 cents to $1 per beer. (Thus, a similar mark-up could happen when ordering sodas or cocktails if there was a tax.)
According to an article from the Washington Post, the industry is expected to spend around $10 million to fight this tax. One of its themes is that soda should not be solely blamed for obesity, which is a good point. Otherwise, we could see a slippery slope of chips, desserts, candy, french fries, etc. all having a tax.
Tags: taxes
