by Marion Nestle

Currently browsing posts about: Taxes

Jul 20 2016

How did Philadelphia pass a soda tax?

I’m at the Summer Academy in Global Food Law and Policy in Getxo, Spain speaking about Soda Politics and was happy to see Healthy Food America’s analyses of how Philadelphia passed a soda tax.

Jim Krieger starts out with a reminder that all cities are different and all politics is local, but in this case Philadelphia did an outstanding job on the

  • Political path: a budget proposal to be passed by the City Council
  • Timing: end of budget speech while still a new mayor
  • Framing: source of revenue to fund pre-K
  • Community base: a coalition
  • Financial support: Bloomberg and Arnold foundations
  • Media buzz
  • An effective champion in Mayor Jim Kenney  

All of these are essential elements in any advocacy campaign.

Casey Hinds, also of Healthy Food America, focuses on why Mayor Kenney’s messaging was so effective.  She quotes from his

This last interview is particularly inspiring.  He knew what he was doing, and why.

KENNEY: It never was a grocery tax. From my perspective and my opinion, their miscalculation is that they thought the people were stupid and that they would totally eat the idea of a grocery tax. In the end, diet [beverages] became part of it because it was part of the negotiation to get us the nine votes or the 13 votes we needed. It was always about sugar-sweetened beverages. It was never about anything else. I think people recognize that this was a way to generate significant revenue without raising their real estate taxes, without raising their wage taxes, without raising business taxes, because those are all the taxes that we’ve always [used] to fund education.

…BOTTEMILLER EVICH: So when the other cities, states, call you, what are you going to tell local officials about going down this road?

KENNEY: Tie it to initiatives that the public wants. Build a coalition around those initiatives. And just continue to grow the coalition and don’t worry about the big money. It’s clear now that the big money isn’t all it’s cracked up to be.

We need more politicians like this.

Jun 16 2016

Today’s big news: the Philadelphia soda tax vote

The Philadelphia city council votes sometime today on whether to pass a soda tax, with most—but not all—of the revenues targeted to pre-kindergarten education.  I’m getting on an airplane pretty soon and will miss the vote, but it is widely assumed to pass.

The decision is up to the city council.  Although the soda industry spent more than $4 million on public relations to urge the council to vote no, and promised to fund the first year of pre-K, its efforts don’t seem to be working.

To put this in context: Sodas are an easy target for public health measures.  Nobody needs them, they are candy in liquid form, and they have no nutritional value.   But it seems as though their makers are willing to spare no expense to stop any city that attempts to tax them.  The total in Philly is $4.9 million by the latest rumors.

Americans are highly likely to support taxes that are earmarked for social purposes, as the Philly tax mostly is.

Every other city council can see that Berkeley gets more than a million a year for discretionary child health programs.  Philadelphia is a bigger city and will get more, but is using it to fill budget holes as well as Pre-K.  I’m guessing lots of places will figure out that they can do this too.

At the very least, the soda industry will be willing to donate huge amounts of money to get city councils to delay or block measure, as it did in Philadelphia.

This vote is worth watching closely (you can do that here).  I’m sorry to be missing it but will try to catch up with it later.

References

Politico’s deep dive is here.

 

Apr 26 2016

Soda Politics gets Presidential: Sanders v. Clinton on soda taxes

Talk about soda politics! I can hardly believe it but soda taxes have become an issue in the Democratic primary campaign.

This started when Hillary Clinton came out in favor of Philadelphia Mayor Jim Kenney’s proposed soda tax.

I’m very supportive of the mayor’s proposal to tax soda to get universal pre-school for kids. I mean, we need universal pre-school. And if that’s a way to do it, that’s how we should do it.

Given the Clinton Foundation’s long-standing relationship with Coca-Cola, this was unexpected.

In short order, Bernie Sanders distanced himself from her position:

I do not support Mayor Kenney’s plan to pay for this program with a regressive grocery tax that would disproportionately affect low-income and middle-class Americans. I was especially surprised to hear Hillary Clinton say that she is “very supportive” of this proposal. Secretary Clinton has vowed not to raises taxes on anyone making less than $250,000 per year. For reasons that are not clear, she has chosen to abandon her pledge by embracing a tax that targets the poor and the middle class while going easy on the wealthy. That approach is wrong for Philadelphia, and wrong for the country.

This, in turn, induced Paul Krugman, who seems to have little love for Sanders anyway, to weigh in:

It does seem worth pointing out that progressivity of taxes is not the most important thing, even when your concern is inequality. Notably, Nordic countries — very much including Denmark, which Sanders has praised as a model — rely heavily on the VAT, which is a regressive tax; but they use that revenue to pay for a strong social safety net, which is much more important.

If we add in the reality that heavy soda consumption really is destructive, with the consequences falling most heavily on low-income children, I’d say that Sanders is very much on the wrong side here. In fact, I very much doubt that he’d be raising the issue at all if he weren’t still hoping to pull off some kind of political Hail Mary pass.

Soda tax proponents wish that Sanders had better understanding of the health issues.

Proponents say Diabetes is regressive.

Here’s information from the table from Soda Politics on framing the soda-tax debate (see page 385).

OPPONENTS SAY ADVOCATES SAY
Taxes are a blunt instrument of government intervention. Taxes can encourage healthier food choices while generating needed revenue.
No compelling evidence links sodas to obesity or other health problems. Research sponsored by independent agencies, not soda companies, clearly links soda consumption to overweight and poor health.
Soda taxes are regressive. They disproportionately hurt poor people. Diabetes is regressive. Obesity and diabetes disproportionately hurt poor people.
Governments should stay out of personal choice. Governments should protect the health of citizens.
Soda choice is a matter of personal responsibility. Taxpayers fund health care costs. Obesity and diabetes are matters of social responsibility.
Soda companies are already making healthful changes to their products. Soda companies heavily market sugary beverages.
Soda sales have declined while obesity rates remain high; Sodas cannot be responsible for obesity. Obesity rates are stabilizing as soda sales decline. Sales of some other sweetened beverages are increasing. All should be taxed.
Sodas are not cigarettes or alcohol; They do not cause the same level of harm. The health effects of sodas increase health care costs for everyone.
Soda taxes lead to unintended consequences; Decreases in consumption will be offset by other sources of calories. Cigarette taxes decreased smoking; Let’s try taxing sodas and see whether it works.
Everyone opposes nanny-state soda taxes. Soda taxes linked to health programs have strong bipartisan support from public health organizations, city officials, and policy centers.
Apr 5 2016

Berkeley vs. Big Soda: The Video

Watch the Ecology Center’s video: Berkeley vs. Big Soda, and learn how Berkeley voters won a soda tax.

The blurb says “This tells the story of how a community stood up for children’s health against one of the world’s most powerful industries – and won.   See: www.BerkeleyVsBigSoda.com.”

Yes you can do this at home.  Do it in your town!

 

Mar 24 2016

Beverage Daily’s Special Edition: Calorie-Cutting Initiatiatives

One of the newsletters I subscribe to, BeverageDaily.com, has a special edition—a collection of its articles—on what the industry is doing to address its biggest problem: reducing sugar.

What is the beverage industry doing to cut calories?

Health and wellness is at the forefront of consumers’ minds, and sugar gets plenty of bad press. Obesity is as big a concern as ever, and soft drinks are in the firing line.

What is the beverage industry doing to reduce calories? How are market leaders reformulating and revamping their portfolios; and what healthier brands are appearing?

From alternative sweeteners to packaging sizes, we look at what the industry is doing to cut calories – and how well these initiatives are working.

From reformulation to nutritional labeling, the non-alcoholic beverage industry has adopted a variety of strategies to reduce the calorie content of drinks. We look at how different strategies from around the world are being implemented. .. Read

You can see why the industry has a problem.  Sugar tastes good.  These other things not so much.

Mar 21 2016

The UK soda tax: a tipping point?

Wonder of wonders, the UK’s Chancellor of the Exchequer, George Osborne, has put a soda tax into his new budget initiative (see BBC account, the video and text of Osborne’s speech, and the Treasury department’s fact sheet on the soda tax).

Here’s how the tax is supposed to work:

Shocking: Many of Britain's most sugary drinks contain more that the daily recommended amount for one person

Osborne says the tax will bring in £520 million ($732 million) in the first year, and he intends to use it to fund more sports in schools.

But it goes into effect in April 2018.  This is to give the industry time to reformulate products with less sugar.  But—the delay also gives the industry ample time to block the tax.

Public Health England supports the tax (see statement).

But the soda industry wasted no time reacting to this bad news.

  • Coke, Pepsi, and other soft drink companies strongly objected.
  • The immediate result: a fall in their stock prices.
  • The immediate reaction: Sue the government.  On what grounds?  Discrimination.  The tax does not affect sugary juices, milkshakes, or processed foods.

New tax: Soft drinks with more than 5g of sugar will be taxed at 6p per can or carton and drinks with more than 8g of sugar will be taxed at 8pm, which if passed on to the consumer means a can of Old Jamaica ginger beer will go up from 58p to 66p

The makers of artificial and alternative sweeteners think this will be a win for them.

Will the tax help reduce obesity?  On its own, that would be asking a lot.

Jamie Oliver, the British chef who favors the tax, says of course it won’t work on its own.  It needs to be accompanied by six additional actions (food labels, better school food, curbs on marketing to kids, etc.).

Why are soda companies so worried about this?  It could be catching.

Will the UK tax stick?  Watch Big Soda pull out every stop on this one.

And think about what they are doing to fight soda taxes when you read or hear that soda companies want to be part of the solution to obesity.

Oct 20 2015

Uh oh. Big Soda lobbyists weaken Mexican soda tax

Yesterday, I received this ALERT from health advocates in Mexico:

Big Soda negotiates behind doors with PRI to reduce Mexican SSB tax to 5% for drinks with 5 grams of added sugars per 100ml– Public health advocates denounce conflict of interest and speak out in defense of the tax

Yesterday Mexico’s Congressional Finance Committee proposed and voted in favor of an alarming measure to reduce the rate of the current 10% sugar-sweetened beverage tax to 5% on products with 5 grams of added sugar or less per 100 milliliters. The measure was pushed through committee vote with a reservation from only one political party and moves on to a vote in the lower house within the next 24-48 hours. Beverages with more than 5 grams of added sugar per 100 milliliters would continue to be taxed at 10% (1 peso per liter).

A columnist in one of Mexico’s most prominent dailies indicates that this negotiation between the FEMSA Coca-Cola bottling company and the PRI political party (current administration and majority vote holder in Congress and Senate) came about after attempts at a food and beverage industry negotiation with the PRI, seeking to reduce Mexico’s SSB and snack taxes. The columnist says Bimbo (&the food industry) was eventually excluded from this negotiation to focus on an attainable goal of reducing the SSB tax. (See column in Spanish: http://www.dineroenimagen.com/2015-10-19/63221 )

After several recent press conferences and an act in Congress “to trap” industry lobby mosquitos (Oct 6), continuing to call for an increase to a 20% SSB tax in accordance with national and international expert recommendations, and warning the public and decision makers of industry lobby, today civil society advocates –the Nutritional Health Alliance and ContraPESO– published a full page ad in Mexico’s most important daily asking whether legislators are on the side of public health or soda industry interests and calling on them not to cede to the industry lobby.

In the ad (see translation below and image attached), advocates warn that the most currently consumed 600 ml sugary drink on the Mexican market that has 5 grams of sugar per 100 milliliters contains 30 grams of sugar, above the WHO’s new guidelines for healthy living.

The language of the initiative to reduce the tax recognizes the SSB tax as a public health measure and the progress made, yet proceeds to reduce the tax far below the expert recommended rate, representating a setback to Mexico’s landmark tax.

FYI: Although Mexico’s lower house of Congress (Chamber of Deputies) holds authority over final budget decisions on income, Mexican legislative process entails that the budget package, once voted in the lower house, passes to the Senate for review and a vote, before passing back to the lower house for final approval.

TO SUPPORT MEXICAN ADVOCATES:
Tweet indignation over industry back-door negotiation and support for the current tax and need for an increased tax: #ImpuestoAlRefresco
Press interviews: contact comunicacion@elpoderdelconsumidor.org
If you or your association can emit a declaration or letter of support, send to:
comunicacion@elpoderdelconsumidor.org
desarrolloinstitucional@elpoderdelconsumidor.org

PUBLIC HEALTH ADVOCATES IN MEXICO – Ad in Reforma newspapers OCT 19, 2015 – IN DEFENSE OF MEXICAN SSB TAX. Translation:
Members of Congress:

Have you let yourselves be bitten by the sugar-sweetened beverage lobby mosquitos?:

Do you serve soda industry or public health interests?

– The tax on sugar-sweetened beverages is 10% (1 peso) and not 20% (2 pesos) per liter as recommended by international and national organizations.

– The proposal to lower the tax to 5% to beverages with 5 grams or less of sugar per 100 milliliters acquiesces to soda industry interests, which are the parties mainly responsible for the collapse of public health in Mexico.

– The most consumed 600 milliliter drink in Mexico has 5 grams of sugar for every 100 milliliters contains 30 grams of sugar (6 spoonfuls).

– This surpasses the 25 grams (5 spoonfuls) that the World Health Organization establishes as a maximum amount of added sugars per day in order to preserve one’s health. (1)

– Sugar is not an essential nutrient and there is solid evidence showing that its consumption is harmful to health, contributing to overweight, obesity and caries, serious public health problems in Mexico.

Sugar-sweetened beverages kill more Mexicans a year than organized crime. (2)

Whose side are you on?

DO NOT GIVE IN TO INDUSTRY PRESSURE!

Show that you work to protect the public health of the Mexican population and not Big Soda’s profits.

We demand that the special tax be preserved and increased to 20% for ALL SUGAR-SWEETENED BEVERAGES, as recommended by international and national organizations.

Mar 5 2015

Court confirms constitutionality of the Mexican soda tax

Last week the Mexican Supreme Court passed down its judgment on a writ of unconstitutionality (amparo) filed against the soda tax that went into effect in January 2014.

This unanimous judgment:

Documents (in Spanish):

 

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