California Considers Penny-Per-Ounce Soda and Energy Drink Tax

A bill that would tack on a one-cent tax per ounce of sweetened beverages such as soda and energy drinks cleared a California committee last week.

April 29, 2013

NEW YORK – A bill that’s moving through the California Legislature would tax sugary drinks like soda one penny per ounce, reports the New York Daily News. 

The bill passed the state Senate Governance and Finance Committee by a vote of 5-2 and now heads to the state Senate Health Committee. “This is the first time this state committee has passed a bill that would place a tax on sugary drinks and the first step toward stemming the epidemic of childhood obesity,” said state Sen. Bill Monning, the lead sponsor of the bill.

The newspaper writes that Monning’s bill exempts drinks that contain fewer than 25 calories, and the funds raised by the new excise tax would fund the state’s newly created Children’s Health Promotion Fund, as well as programs that combat childhood obesity.

“By taxing these products we will be able to implement programs that will assist in preventing disease among children and begin to address a public health crisis whose rising health costs affect all Californians,” Monning said. 

Beverage groups such as the Center for Consumer Freedom oppose the tax-by-the-ounce idea: “Taxes shouldn’t be a tool for social engineering or an instrument to penalize Californians for doing nothing wrong,” J. Justin Wilson, a senior research analyst at the center, told the Los Angeles Times. ”Residents of California don’t need a Ph.D. in nutrition to tell them that eating or drinking too much of anything is unhealthy. It only takes a little common sense and personal responsibility.”

Meanwhile, Denmark, the country with one of the highest taxes on soda in Europe, is eliminating its tax on soft drinks, which has been in effect for approximately 80 years, in an effort to restart the economy. The tax will be halved starting July 1, 2013, and removed completely starting January 1, 2014

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