Illinois Considering Sugary Drinks Tax

The proposal to tax soft drinks is included as part of the state senate’s “grand bargain” to approve a budget.

January 23, 2017

SPRINGFIELD, Ill. – The Illinois Senate has revived a tax on sugary beverages as part of its plan to okay a state budget, the State Journal-Register reports. Senate Bill 9 would apply a tax on any drink with five grams or more of sugar, which would affect soft drinks and some juices. The bill would mandate distributors add a penny-per-ounce tax on retailers. The tax would generate around $560 million.

Health advocates support such a tax as good for state residents. Mark Peysakhovich, senior director of government relations at the American Heart Association, sees the bill as a positive step forward for Illinois. “As far as the state's budget goes, the fact this was part of the bipartisan proposal gives this issue a seat at the table,” he said. "We're applauding folks in raising this tax—a sugary tax is the healthiest revenue option.”

However, the beverage industry notes that such a tax isn’t the answer for the state’s budget crisis. “Nothing in the proposed bill links it to health, or funding any health initiative,” Claudia Rodriguez, acting executive director for the Illinois Beverage Association, pointed out. “It's deceiving to say it's going to solve the budget crisis and help health issues. It's not even projecting how it's going to affect the state.”

Rodriguez also said that approval of the bill could potentially put some of the 90,000 jobs directly and indirectly related to the beverage industry in jeopardy. “This will directly affect consumers, and all people that depend on the beverages,” she said. “People will automatically see it when they go to the cash register: 68 cents added on your typical 2-liter bottle that costs 99 cents. Soda will be taxed at a higher level than beer.”

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