by Marion Nestle

Currently browsing posts about: Taxes

Nov 5 2014

Yesterday’s elections: plenty of good news for the food movement

This was a big election for the food movement:

  • Soda taxes in Berkeley and San Francisco
  • GMO initiatives in Colorado, Oregon, and Maui
  • The reelection of particularly fierce opponents of food stamps
  • Minimum wage laws

Soda taxes

Hats off to Helena Bottemiller Evich of Politico ProAg who stayed up half the night to file her story at 3:00 a.m.  As usual, she cuts right to the chase.  Here’s her comment on the Berkeley win:

Voters approved Measure D, a penny-per-ounce tax, by a three-to-one margin after a bitter campaign battle, with the beverage industry spending more than $2.1 million to oppose the initiative. The pro-tax campaign was bolstered by more than $650,000 from former New York City Mayor Michael Bloomberg.

The vote for the tax in Berkeley was a whopping 75%–a clear, unambiguous win.

The vote in San Francisco passed the tax by a majority—54.5%—but a 2/3 vote was required because the measure specified where the funds would to.

And here’s some commentary

Dana Woldow, who has covered these elections closely on the website Beyond Chron, has this to say about the Berkeley win.

Xavier Morales, executive director of the Latino Coalition for a Healthy California, told me that entities across the state have just been waiting to hear what happens in Berkeley and SF to advance their own local plans for a tax, and that there are ongoing discussions at the state level regarding the feasibility of a soda tax bill to help reduce diabetes, heart disease and stroke. “Other cities in the Pacific Northwest have also been watching both San Francisco and Berkeley with great interest,” he said.

Sara Soka, campaign manager for Berkeley vs Big Soda (the Yes on D campaign)says:

What happens in Berkeley doesn’t stay in Berkeley…Berkeley’s public school system was one of the first to voluntarily desegregate in 1968. It’s led in public school food policy, smoke-free areas in restaurants and bars, curb cuts for wheelchairs.  All these positive changes are now mainstream.

Michael Jacobson, director of Center for Science in the Public Interest, a long-time supporter of soda taxes, says:

Berkeley voters have shown it can be done.  A community’s health can trump Big Soda’s insatiable appetite for profit…This is a historic victory for public health and a historic defeat for the increasingly disreputable soda industry. Coca-Cola, PepsiCo, and the American Beverage Association can no longer count on spending their way to victory.

San Francisco’s Choose Health SF

This isn’t about one soda tax. This is about a national movement that was kicked off tonight, and we are proud to have raised the conversation about the health impacts of soda and sugary beverages, and exposed the beverage industry’s deceptive tactics.

GMO labeling and no-plant initiatives

At a cost estimated at more than $60 million, the GMO industry and its food industry friends managed to defeat labeling measures in Oregon and Colorado.

In Maui, voters passed an initiative to block cultivation of GMO materials on Maui, Molokai and Lanai until cleared by environmental and safety studies.

The Information Technology & Innovation Foundation released this statement quoting Val Giddings of the Biotechnology Industry Organization:

The effort was a misleading, fear-based campaign to put a “scarlet letter” on genetically modified foods. “We commend the citizens of Colorado for protecting the environmental benefits, food abundance and lower prices that have been delivered by seeds and crops improved through biotechnology.”

Reelection campaigns

These have to do with representatives whose positions on food stamps are especially awful.   The position of one, Florida Republican Steve Southerland, was so dreadful that he was singled out by Food Policy Action for targeting.

During discussions of the farm bill, Southerland led attempts to cut food stamps and force beneficiaries to work.  Food Policy Action’s Tom Colicchio and Ken Cook issued a statement:

This is a big win for food advocates and Florida families. Congressman Southerland has repeatedly made policy choices that are harmful to families and small farmers. Today, we proved that voters care about food issues, and they will hold their elected officials accountable on Election Day.

 New York City Coalition Against Hunger notes these election results:

  • Steve Southerland (Florida 2), arguably the greatest Congressional opponent of SNAP/Food Stamps, lost his re-election bid.
  • PA Governor Tom Corbett who – soon after becoming Governor – wanted to slash Food Stamps benefits – lost big.
  • In contrast, Thad Cochran, who is perhaps the GOP’s strongest supporter of SNAP/Food Stamps, won re-election to the Senate by a wide margin in Mississippi.

It quotes executive director Joel Berg: “Cutting SNAP and other safety net programs is bad policy, bad morals, and, as last night’s results show, bad politics.”

Minimum Wage Laws
Voters in four red states (SD, AR, AK, NE) passed raises in the minimum wage by wide margins, even though they defeated Democratic candidates.

My comments on all of this

  • To the question, will soda taxes reduce consumption, I would answer: the soda industry thinks so to the tune of $11 million in San Francisco and Berkeley.
  • To the question, will GMO labeling hurt the GMO and food industries, I would answer: the industries think so to the tune of about $100 million so far.
  • These expenditures—and the bullying that go with them—are sufficient to explain the voter turnout.

If you haven’t seen Nightline’s exposé of the soda industry’s tactics, now might be a good time to take a look.

And celebrate!

 

 

Jul 31 2014

Rep. Rosa de Lauro introduces the SWEET soda tax act!

Yesterday, the fabulous Representative Rosa DeLauro (Dem_CT) introduced the Sugar-Sweetened Beverages Tax Act of 2014 (SWEET Act).  Here’s a quick summary of the bill. The SWEET Act (you have to love the name) would put an excise tax of one cent per teaspoon of sugars (a teaspoon is about 4 grams). The bill is clearly aimed at sugary drinks, which account for about half of total sugar intake.  According to the 2010 Dietary Guidelines (page 29),

  • Sodas, energy, and sports drinks account for 35.7% of total sugars
  • Fruit drinks—a category that does not include 100% juices—account for another 10.5%.
  • Sugar-sweetened teas account for 3.5%.

The tax ought to raise about $10 billion a year, and is earmarked for programs to combat soda-related disease. It also ought to further reduce consumption of sugary drinks, as is already happening in Mexico. If you would like to endorse this legislation, contact Kelly.Horton@mail.house.gov in Representative DeLauro’s office. References

 

Nov 6 2013

In food politics too, money talks

Can money buy elections?  Apparently so.

Yesterday’s election results indicate that the GMO-labeling initiative in Washington state and the soda tax initiative in Telluride, CO both failed.

Washington’s I-522

According to USA Today, the defeat cost opponents $22 million.  All of that—except $550—came from out of state.

The top five contributors were the Grocery Manufacturers Association, Monsanto, DuPont Pioneer, Dow AgroSciences and Bayer CropScience.

But the Grocery Manufacturers Association was required to list its contributors.  The top five?  PepsiCo, Nestlé (no relation), Coca-Cola, General Mills, ConAgra  at about a million each when you add it all up.

USA Today reports:

Food industry ads claimed that the initiative would raise food prices. Labels would mislead consumers into thinking that products that contain genetically engineered ingredients are “somehow different, unsafe or unhealthy,” said Brian Kennedy of the Grocery Manufacturers Association, a food industry group based in Washington, D.C.

The Yes on 522 campaigns emphasized consumers right to know what’s in their food.

But PoliticoPro points out that because votes are mailed in, more than 600,000 votes may still be left to count.

The food and biotech industries used their considerable war chest to make ad buys across the state, pointing out all of the products that would not be covered under the measure — such as cheese, beer, restaurant food and even, they claimed, pet food — and pushing the message that the bill is misleading and would considerably raise food prices. They said the law would hurt Washington’s farm families.

As I told USA Today, sooner or later, one of these is going to pass. At some point the industry is going to get tired of pouring this kind of money into these campaigns and will beg for labeling, which is what should have happened in the first place.

The Telluride soda tax

Telluride is a small town, so the amounts are much smaller.

According to ProPolitico, the Colorado Beverage Association installed an onsite lobbyist to generate opposition to the measure through meetings and an Internet site.

The largest donors to the opposition campaign were a Texas billionaire who owns a second home in Telluride ($55,000), and the the local and national beverage associations. were the largest contributors to the anti-tax campaign, giving $20,000 and $55,000 respectively.

Taxes, of course, are never popular even when intended for public health purposes, as this one was.

Soda taxes too, will pass eventually.

Patience and fortitude.

Addition: Here’s the Washington State vote as of this morning.

Oct 6 2013

Soda tax controversy goes international

My monthly first Sunday Food Matters column in the San Francisco Chronicle:

Q: I hear that the Mexican government wants to increase taxes on sodas as a way to fight diabetes. The soda industry persuaded voters to defeat soda taxes in Richmond and El Monte last year. Won’t it do the same in Mexico?

A: It might. I’m just back from a lecture trip to Mexico City where I heard plenty about the proposed soda tax and the industry’s response to it.

Last month, the Mexican government proposed an additional soda tax of one peso (about 8 cents) per liter. The idea is to raise $1.5 million per year while discouraging soda consumption, thereby helping to reduce the country’s high prevalence of obesity and Type 2 diabetes.

Mexicans drink lots of soda. By some estimates, average per capita consumption is 50 gallons a year, the highest in the world. It’s no coincidence that more than 70 percent of Mexicans are overweight or obese, and around 15 percent have Type 2 diabetes, a prevalence that terrifies health officials. This type of diabetes, if undiagnosed and untreated, can lead to blindness or foot amputations.

‘Nutrition transition’

Mexico is a classic example of a country in “nutrition transition.” As the economy improves, people increasingly buy high-calorie ready-made foods, put on weight, and raise their risk for diabetes. Meanwhile, the poorer segments of the population continue to experience high levels of stunting, iron-deficiency anemia and vitamin A deficiency.

This makes obesity a relatively new problem in Mexico, one widely understood to result from the introduction of processed foods – especially sodas – into the Mexican food market.

I could easily see how deeply sodas are embedded in Mexico’s food culture. Sodas were advertised and available everywhere. And they come in enormous three-liter bottles that cost less than the price of bottled water – only 17 pesos ($1.35) each. Clean water is not always available, making sodas the easy choice.

Sodas are cheap because Mexico grows its own sugarcane and sells it at market prices. We, however, artificially support the higher price of U.S. sugar through tariffs and quotas. That’s why our sodas are made with high fructose corn syrup. We subsidize corn production so corn syprup costs less than sugar.

Some people think cane sugar tastes better than high fructose corn syrup, although controlled taste tests don’t always back this up. It’s ironic that U.S. supermarkets now carry, at highly inflated prices, Mexican Coca-Cola sweetened with cane sugar.

Industry efforts to defeat the Mexican soda tax have been ferocious, just as they were in Richmond and El Monte last year. Producers argue that if the tax really does decrease consumption, it will cause hundreds of thousands of jobs to be lost.

I saw a newspaper advertisement from the Mexican Beverage Association that not only attacked the science relating soft drinks to obesity, but extolled the health benefits of sodas: “Sugar is nutritious; it’s a carbohydrate. Carbohydrates are essential for life. Sugar is indispensable for the brain. Soft drinks hydrate and bring energy.”

An ad from the sugarcane industry also threatened job losses – “The tax will generate unemployment and discourage productivity and investment” – and noted that workers and the poor will bear most of its burden.

The big questions

As with any such initiative, the big questions are whether the tax is likely to reduce soda consumption, obesity and diabetes, and whether the revenue will be used for widely beneficial public health purposes. Mexico’s Congress will have to address these questions when it votes on the tax in the weeks ahead.

In the meantime, a coalition of consumer and health groups, in part funded by Bloomberg Philanthropies, has been putting posters in subway stations that illustrate the amounts of sugar in soft drinks. The groups are actively advocating for the soda tax and for using its funds to provide free potable water in schools – something that does not now exist. But TV stations have refused to carry their ads for fear of losing soda advertisers.

Like their U.S. colleagues, Mexican public health authorities are searching for effective ways to reverse obesity trends. Sugary drinks are an easy target. Taxing them might happen despite industry opposition – especially if the funds are earmarked for clean water.

Editor’s notesMarion Nestle will discuss her new book, “Eat, Drink, Vote: An Illustrated Guide to Food Politics,” with Narsai David at the Commonwealth Club on Oct. 15 at 6 p.m., and at Book Passage in Corte Madera on Oct. 19 at 11 a.m.

She is also receiving the James Beard Foundation Leadership Award for her writing about how science and public policy influence what we eat. The award ceremonies are Oct. 21 at the Hearst Tower in New York.

Marion Nestle is the author of “Eat, Drink, Vote,” “Why Calories Count: From Science to Politics,” “Food Politics” and “What to Eat,” among other books. She is a professor in the nutrition, food studies and public health department at New York University, and blogs at www.foodpolitics.com. E-mail: food@sfchronicle.com

Sep 23 2013

Pepsi, Mexican style

In Mexico, you can get most kinds of sodas in 3 liter bottles.  At 17 pesos ($1.33) for 3 liters, Pepsi is cheaper than water.

IMG-20130921-00081

Note the 3-peso penalty if you buy two 1.5-liter bottles.  

It’s hardly a coincidence that Mexico has high soda consumption and high rates of obesity.  Taxing sodas seems like a particularly good idea in this situation.

Dec 2 2012

The defeat of California’s soda tax initiatives: lessons learned

My monthly (first Sunday) Food Matters column for the San Francisco Chronicle deals with the aftermath of the defeat of two California soda tax ballot initiatives.

Q: As one who campaigned for the soda tax in Richmond, I’m so discouraged by the millions spent by the soda industry to defeat it there and in El Monte (Los Angeles County). I don’t see how anyone without that kind of money can do anything to reverse obesity and diabetes.

A: Patience. These things take time.

Losing the soda tax campaigns taught health advocates some important lessons, not least that money buys votes. But it also taught that appeals to voter concerns about higher prices, job losses and personal autonomy are more effective than appeals based solely on health considerations.

Nobody likes taxes, and soda taxes are regressive, meaning that they impose a greater burden on the poor. Although the poor drink more sodas and have higher rates of obesity, and are likely to derive the most benefit from drinking less soda, taxes are still a hard sell.

Because dietary choices seem so personal, the influence of the food marketing environment on personal choices is not intuitively obvious. Everyone “knows” that larger food portions have more calories, but that doesn’t stop anyone from eating more calories when confronted with supersize foods or drinks.

The public health route

That’s why public health approaches work better than just telling people to eat less or eat better. The most effective measures change the environment of food choice by encouraging better options with price subsidies or portion-size caps and discouraging unhealthier choices, which is where taxes, bans on toys, and restrictions on marketing come in.

Such measures aim to make healthy choices the default. Most people are happy to live with the default option.

Food companies want their products to be the default. They will always oppose measures that might reduce sales, and they have no lack of resources to do so.

How might public health advocates counter such opposition?

Community approach

The Richmond example suggests the need for public health approaches that are community-based. This means going into communities and asking residents how they view the causes and consequences of their own health problems, and what they think should be done to fix those problems.

Communities set the goals. Advocates help communities achieve them.

This approach is fine in theory, but difficult in practice. Nobody makes food choices in a vacuum. Soda and fast food companies market their products to low-income and minority groups, and make sure their products are inexpensive, readily available and ubiquitously advertised.

To gain traction, food and beverage companies support the activities of community groups, sponsor playgrounds, and place their brand logos on everything they can. My favorite recent example is Coca-Cola’s $3 million gift to Chicago to fund an educational campaign to counter obesity and diabetes (no, I did not make this up).

Community-based campaigns not only can focus on the health consequences of poor diets but also can demonstrate to residents just how food companies put corporate health above public health and engage low-income communities in achieving corporate goals.

Teaching how the food marketing environment works should stimulate plenty of questions about why healthier foods aren’t more widely available in communities – and at affordable prices. It should raise questions about why school lunches aren’t better, and why soda advertising pervades athletic facilities. It should get people thinking about what food and beverage companies are actually doing in low-income communities.

Community-based public health should encourage residents to want to change their food environment.

It should get them thinking about wanting stores to provide healthier foods. Or they might want a farmers’ market, community gardens, better school food, and cooking lessons for their kids.

A method that works

These things really can help change eating behavior. The American Heart Association recently published a massive review – with rankings – of environmental interventions aimed at improving personal diets, physical activity levels, and smoking habits (See Circulation 2012; 126:1514-1563).

The review cites evidence for strategies to improve diets such as media campaigns, price subsidies, school meals and gardens, and restrictions on marketing, as well as taxes as portion caps. Some of these interventions are expensive, but others are not.

A review like this gives advocates plenty to work with.

Soda tax initiatives will not be going away. Neither will other such measures. Community leaders across the country will be continuing to introduce them as a means to reduce health care costs and to generate needed revenue for health-promoting activities.

It’s worth starting now to engage communities in efforts to improve their own health. Next time, engaged communities may be ready to vote for health over corporate interests.

Grassroots efforts take time. It’s too soon to be discouraged.

Marion Nestle is the author of “Why Calories Count: From Science to Politics,” as well as “Food Politics” and “What to Eat,” among other books. She is a professor in the nutrition, food studies and public health department at New York University, and blogs at foodpolitics.com. E-mail: food@sfchronicle.com. 

Nov 28 2012

The Danish fat tax: reflections on its demise.

My latest publication is a commentary on the reversal of the Danish fat tax in New Scientist, November 26:

Fighting the flab means fighting makers of fatty foods

A YEAR ago in these pages, I congratulated the Danish government on its revolutionary experiment. It had just implemented a world-first fiscal and public health measure – a tax on food products containing more than 2.3 per cent saturated fat.

This experiment has now been dropped. Under intense pressure from the food industry in an already weak economy, the Danish government has repealed the fat tax and abandoned an impending tax on sugars.

Nobody likes taxes, and the fat tax was especially unpopular among Danish consumers, who resented having to pay more for butter, dairy products and meats – foods naturally high in fat.

But the real reason for the repeal was to appease business interests. The ministry of taxation’s rationale was that the levy on fatty foods raised the costs of doing business, put Danish jobs at risk and drove customers to buy food in Sweden and Germany.

In June this year, a coalition of Danish food businesses organised a national repeal-the-tax campaign. The coalition said that fat and sugar taxes would cause the loss of 1300 jobs, generate high administrative costs and increase cross-border shopping – precisely the arguments cited by the government for its U-turn.

We can now ask the obvious questions. Did the tax achieve its aims? Was it good public policy? What should governments be doing to reduce dietary risk factors for obesity?

The purpose of food taxes is to reduce sales of the products concerned. In bringing in its fat tax, the Danish government also wanted to raise revenue, reduce costs associated with obesity-related diseases, and increase health and longevity. A year is hardly time to assess the impact on health, but the tax did bring in $216 million. Danes will now face higher income taxes to make up for the loss of the fat tax.

Business groups insist that the tax had no effect on the amount of fat that Danes ate, although they chose cheaper foods. In contrast, economists at the University of Copenhagen say Danish fat consumption fell by 10 to 20 per cent in the first three months after the tax went into effect. But it is not possible to know whether it fell, and cross-border shopping rose, because of the tax or because of the slump that hit the Danish economy.

A recent analysis in the BMJ suggests that 20 per cent is the minimum tax rate on food to produce a measurable improvement in public health. The price of Danish foods hit by the tax increased by up to 9 per cent, enough to cause a political firestorm but not to make much of a difference to health.

Is a saturated-fat tax good public policy? A tax on sugary drinks would be a better idea. To see why, recall that obesity is the result of an excess intake of calories over what we burn. Surplus calories, whether from carbohydrate, protein or fat, are stored as body fat. All food fats are a mix of unsaturated and saturated fatty acids; all provide the same number of calories per unit weight.

Saturated fats raise the risk of coronary heart disease, although not by much. Trans fats, banned in Denmark since 2003, are a greater risk factor. Because the different saturated fatty acids vary in their risk, imposing a single tax on them as if they are indistinguishable is difficult to support scientifically.

For these reasons, anti-obesity tax measures in other countries have tended to avoid targeting broad nutrient groups. Instead, they focus on processed foods, fast food or sugary drinks – all major sources of calories. Taxing them seems like a more promising strategy.

What else should governments be doing? That they have a role in addressing the health problems caused by obesity is beyond debate, not least because they bear much of the cost of dealing with such problems. In the US, economists estimate the cost of obesity-related healthcare and lost productivity at between $147 billion and $190 billion a year. The need to act is urgent. But how?

One lesson from Denmark is that small countries with open borders cannot raise the prices of food or anything else unless neighbouring countries also do so. But the greater lesson is that any attempt to encourage people to eat less will encounter fierce food-industry opposition. Eating less is bad for business.

In the US, state and city efforts to tax sugary drinks have met with overwhelming opposition from soft-drink companies. They have successfully spent tens of millions of dollars lobbying legislators and convincing the public that such measures deprive voters of their “right to choose” or, as in Denmark, can damage the economy.

What’s more, the poor cannot be expected to support measures that increase food costs, even though obesity-related problems are much more common among low-income groups.

If governments really want to reduce the costs of obesity-related chronic diseases, they will have to address the problem at its source: the production and marketing of unhealthy food products.

A review by the American Heart Association cites increasing evidence for the benefits of anti-obesity interventions: food taxes, subsidising healthy foods, media campaigns to promote exercise and good diet, restrictions on portion sizes, and restrictions on the marketing of unhealthy foods and their sale in schools.

Governments must decide whether they want to bear the political consequences of putting health before business interests. The Danish government cast a clear vote for business.

At some point, governments will need to find ways to make food firms responsible for the health problems their products cause. When they do, we are likely to see immediate improvements in food quality and health. Let’s hope this happens soon.

Marion Nestle is the author of Food Politics and What to Eat and is the Paulette Goddard professor of nutrition, food studies, and public health at New York University

Nov 7 2012

The election is over (whew): what’s next?

My post-hurricane Manhattan apartment still does not have telephone, internet, or television service, so I followed the election results on Twitter.

I knew that President Obama had been reelected when the Empire State Building turned on blue lights.

What’s ahead for food politics?

With the election out of the way, maybe the FDA can now:

  • Release final food safety rules (please!)
  • Issue proposed rules for front-of-package labels
  • Issue proposed rules for revising food labels
  • Require “added sugars” to be listed on labels
  • Define “natural”
  • Clarify “whole grain”
  • Release rules for menu labeling in fast-food restaurants

Maybe the USDA can

  • Release nutrition standards for competitive foods served in schools

And maybe Congress can pass the farm bill?

As for lessons learned:

  • The food industry has proven that it can defeat consumer initiatives by spending lots of money: $45 to $50 million on California’s Proposition 37 (GMO labeling), $4 million on soda tax initiatives in Richmond and El Monte.
  • But if enough such initiatives get started, food companies might get the message?
The election leaves plenty of work to do.  Get busy!
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