Currently browsing posts about: Taxes

I’ve been collecting information about soda taxes.  If you think they are worth a try, as I do, and want to help get the New York bill (the Duane Bill) passed, plenty of background information and tools are available.

Tomorrow, March 8, The New York Academy of Medicine, the New York State Healthy Eating and Physical Activity Alliance, and the New York State Public Health Association invite you to a symposium:

TAKING ACTION AGAINST OBESITY:
A Sugar-Sweetened Beverage Tax for New York State
Monday, March 8 2010 from 2:00 pm to 3:30 pm
Blue Room, 2nd Floor, Capitol Building, Albany, NY

Speakers include NYS Health Commissioner Dr. Richard Daines, New York City Health Commissioner Dr. Tom Farley, and Dr. Kelly Brownell from the Yale Rudd Center for Food Policy. The event is free.  RSVP to tsanders@malkinross.com

Here’s more than you ever wanted to know about why these taxes are likely to do some good and are worth passing:

• Dr. Daines’ editorial supporting the bill.
• A handy Q and A on the taxes.
• Advertisements from the Alliance for a Healthier New York.
• Talking Points for writing letters.
• More talking points from the New York State Healthy Eating and Physical Activity Alliance.

Convinced?  Want to help?

• Sign the Statement of Support.
• Join Legislative Visits on Wednesday, March 17, in Albany. Contact agarcia@nyam.org to sign up.
• Send a letter to your representatives. Citizen’s Committee for Children has a produced a letter-generator for this purpose.
• Write a postcard using this prototype..

And just for fun, here is testimony from an official of PepsiCola opposing the taxes and a rebuttal from some group (sorry, I don’t know which).

Finally, the Los Angeles Times (February 21) had a terrific graph of the recent sharp increase in lobbying expenditures (in the rebuttal).  Given the mess in Albany, it will be interesting to see how all this goes.  Act now!

The New York City Health Department has produced a handy guide – a tool kit, actually – to soda tax legislation.    It explains the rationale, reviews the evidence supporting the use of such taxes, provides fact sheets, and answers Frequently Asked Questions.  For the academics among us, it provides loads of reference citations.  Take a look and put it to good use!

Update January 30: FoodNavigator.com did a report on reaction to the soda tax bill, “Fresh New York soda tax plans stir up the obesity debate.”  It’s got a great quote from the American Beverage Association:

What’s particularly disconcerting about this proposal is that the tax on a 12-pack of non-alcoholic beverages, like soft drinks, would be more than 9 times higher than the state tax on a 12-pack of alcoholic beverages, like beer.

This, as you might expect, has stirred up some counter-proposals, the most obvious being to increase the tax on alcoholic beverages.  Now that ought to generate some additional revenue!

While we are on the subject of alcohol, a forthcoming paper by Barry Popkin is said to have some interesting trend data:

Among adults aged 19 and over, SSB [sugar-sweetened beverage] consumption had almost doubled from 64 to 142kcal/day and alcohol consumption had increased from 45 to 115 kcal/day [from 1977-2006].

Popkin’s conclusion: “The consumer shift towards increased levels of SSBs and alcohol, limited amounts of reduced fat milk along with a continued consumption of whole milk, and increase juice intake represent issues to address from a public health perspective.”

If only meat were just a food and not the flash point for concerns about health, climate change, and tax policy.  But it looms large in all such debates.

According to reports, meat is linked not only with a higher rate of cancer but also with type 2 diabetes.   Does this make logical sense?  It could, especially if meat eaters take in more calories and are fatter than non-meat eaters.

We’ve heard so much lately about how farm animals contribute to environmental problems and climate change, but Nicolette Hahn Niman writes in the New York Times of “the carnivore’s dilemma.”  It’s not the animals themselves that contribute to climate change, it’s the industrial methods of raising them that are the problem.  She ought to know.  She and Bill Niman run the free-range ranch in Bolinas, California highlighted in Time magazine last August.

On the other hand, Princeton professor and ethicist Peter Singer argues in the New York Daily News that meat is so bad for health and the environment that it ought to be taxed.

How to deal with all of this?  Push for more humanely and sustainably raised farm animal production, dont’ eat meat if you choose not to, and if you do eat meat, just don’t eat too much of it.

Update, November 4: I forgot to include Jonathan Safran Foer’s piece in the New York Times magazine on why he is against meat.

Today’s New York Times carries this full-page ad taking on the New York City Health Department’s campaign against sodas.

Although the ad says it’s paid for by the Center for Consumer Freedom (CCF), it doesn’t take much to guess who paid that group for it.  What better way to fight back than to hide behind this particular public relations agency, which specializes in defending purveyors of unhealthful products.

What CCF is about – and which companies pay for its work – are well known (for starters, see previous post).

I’m guessing the Health Department’s campaign must be having an effect if soft drink companies are so worried that they are willing to fund a group that is so consumer unfriendly.

Addendum:  no wonder they are worried.  According to a new report on soda taxation from Center for Science in the Public Interest, President Obama has said the idea is worth considering.

And thanks to Fred Tripp for giving me yet another CCF ad, this one from the September 30 A.M. New York.   All of this must be making soda companies worried enough to sign on with CCF.  Not a good idea.

Update October 2: I’ve just been send a link to Rachel Maddow’s comments on Rick Berman, the head of CCF.  Look for “Meet Rick Berman.”  It gives an overview of CCF accounts.  I’m not sure when it aired.

If I read the tea leaves correctly, soda taxes are on their way.  Kelly Brownell and Tom Friedan broached the idea earlier this year.  York state tried and failed to implement them.

Since then, as we learn more about the role of sugary drinks as a factor in obesity, public health support for the idea is growing.  Last week, Jim Knickman, President of NYSHealth wrote an op-ed in the New York Post in favor of the taxes.    Now the New England Journal of Medicine – as prestigious a journal as they come – is publishing another article from  Brownell, Frieden, et al on the public health and economic benefits of taxing sugary soft drinks.

And the evidence accumulates daily.  Children and adults who habitually drink sodas are more likely to be obese and have worse diets than those who do not.  The latest study from the California Center for Public Health Advocacy and a policy research group at UCLA makes just this point.

The study found that 41 percent of children (ages 2 – 11), 62 percent of adolescents (ages 12 – 17) and 24 percent of adults drink at least one soda or other sugar-sweetened beverage every day. Regardless of income or ethnicity, adults who drink one or more sodas or other sugar-sweetened beverages every day are 27 percent more likely to be overweight or obese.

The result of all this is what the New York Times is calling in its print headline, “tempest in a soda bottle.”  I’d call it a Category 5 hurricane.

As I love to point out, it did not used to be OK for kids to drink sodas all day long.  Now it is.  Taxes might encourage some changes in these recent practices.  It will be interesting to watch this idea progress.

Later in the day: as for pushback, here is a link to the ad from the “Americans Against Food Taxes.”  Why am I thinking this is an astroturf client of the Center for Consumer Freedom?  Just a wild guess.

On June 3, the New York Times editorial page endorsed the idea of a tax on sugary sodas, and I especially liked the way the writer placed the issue in context:

Bigger fixes are needed, of course, starting with decent health care. The young need more exercise, healthier lunches and better education on nutrition. All consumers — not just those lucky enough to live near farms or large grocery stores — should be able to buy fresh fruits and vegetables at affordable prices. While we wait, Congress could impose an excise tax on sugary drinks — one of the main culprits in the obesity epidemic.

Yesterday, the Times published three letters in response, a set remarkable for concisely summarizing the same tired, old arguments.

From the American Beverage Association: “Balancing calories consumed with those expended through physical activity is the critical factor in preventing obesity. Therefore, we must continue to educate Americans about the importance of energy balance.”  Yes, but that won’t be enough.  As I have explained in previous posts, overeating calories has a much greater impact on weight gain than physical activity has in preventing it, and plenty of those overeaten calories come from sugary drinks these days.

Another writer, complaining that personal responsibility and parental responsibility have been lost in this discussion, then goes on to propose precisely the non-personal, societal approaches that the editorial was promoting: “Let’s try removing soda machines from our schools, providing healthier school lunches and ensuring that our gym classes are financed.”

Good ideas.  But I still think soda taxes could be an interesting experiment, well worth a try.

David Leonhardt’s column in the business section of today’s New York Times, takes on soda taxes.  It’s starting point is the New England Journal of Medicine article (see earlier post) by Kelly Brownell at Yale and New York City Health Commissioner Tom Frieden, the newly appointed head of the Centers for Disease Control and Prevention .  Leonhardt notes that such taxes are Pigovian (after the economist Pigou): they discourage unhealthful practices and encourage healthful ones.  As he puts it, “In coldly economic terms, you can make a case that calories are the single best candidate for a Pigovian tax.”

Leonhardt finds arguments for soda taxes compelling.  He tried, but could not get any soda company executive to speak to him about them (why am I not surprised).

I’m intrigued by the accompanying illustration.  In the last ten years, the cost of fruits and vegetables has gone way up.  The cost of sodas is way down.  Isn’t something wrong with this picture?  Isn’t now a good time to try to fix it?

Update June 3: Editorial in the New York Times: “While we wait [for bigger fixes], Congress could impose an excise tax on sugary drinks – one of the main culprits in the obesity epidemic.”

Kelly Brownell of the Yale Rudd Center and Tom Friedan of the New York City Health Department write that taxes on sodas make sense as a way to get people to consume less of them (New England Journal of Medicine, April 8).  Cutting down on sugary drinks is the first thing to do to control weight.  Brownell and Friedan lay out the arguments for and against soda taxes and conclude that this approach has significant potential for improving health. Take a look at the paper and see if you agree.

In the meantime, Corby Kummer at the Atlantic Food Channel writes about what’s happening in Washington on this very issue.  And David Katz responds to comments from the Beverage Association about the paper (hint: they didn’t like it).