A federal court in San Francisco has issued a temporary injunction against the city of Richmond, California, to block enforcement of a law requiring campaign mailers to include information about “major funding from large out-of-city contributors.” Cmty. Coal. Against Beverage Taxes v. City of Richmond, No. 12-4545 (N.D. Cal., order entered September 7, 2012). The ordinance calls for committees that spend at least $2,500 on a local ballot proposal campaign to list their top five contributors on each mailer. According to news sources, the city adopted the ordinance in June in the midst of a heated political dispute over a November ballot measure that would, if approved by voters, require local businesses to pay a 1-cent-per-ounce tax on the sales of sugar-sweetened beverages. The Community Coalition Against Beverage Taxes, purportedly funded by the American Beverage Association, has apparently spent in excess of $350,000 to defeat the measure, outspending the proposal’s…
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The City of Lakewood, Colorado, has reportedly adopted an ordinance that will subject soft drinks and candy to a 3 percent city sales tax. The tax code change was apparently considered and approved during the city council’s August 27, 2012, meeting. The ordinance is intended to align the city’s taxation of food with the state by exempting sales of food for immediate consumption from sales tax, while taxing soda and candy. According to a news source, the change takes effect in 30 days. See ABC7News, TheDenverChannel.com, August 28, 2012.
The American Medical Association (AMA) has reportedly championed taxes on sugar-sweetened sodas as a way to fight obesity. Although it failed to pass a policy that outright supports such a measure, the AMA recognized during its recent annual meeting that “while a number of factors contribute to the obesity epidemic, taxes on beverages with added sweeteners are one way to finance consumer education campaigns and other obesity-related programs.” To that end, the physicians group voted to adopt a policy supporting obesity-prevention education for children and teens in public schools that encourages doctors to volunteer to teach classes on causes, consequences and prevention. “I can’t tell you the number of 40-pound 1 year-olds I see every day,” pediatrician Melissa Garretson was quoted as saying. See AMA Press Release, June 20, 2012; Associated Press, June 21, 2012.
A March 27, 2012, “Great Speculations” column on Forbes.com draws parallels between carbonated soft drink (CSD) companies and the tobacco industry, claiming that a recent decline in CSD consumption in the United States has created a competitive market environment similar to that faced by cigarette manufacturers. Authored by contributors from Trefis.com, an investment and market research tool, the article notes that decreased CSD sales volume has prompted soft drink manufacturers to adopt strategies allegedly used by tobacco companies, such as raising product prices, promoting alternatives like energy drinks and juices, and arguing against taxation. “Part of the reason why these industries attract high taxation is because the fiscal deficit of the government is in a mess and imposing taxes n hese industries ensures higher revenue collection in the name of political mileage,” concludes the article. “Cola companies won’t hesitate to ncrease the prices periodically (although certainly not as aggressively as…
Anti-sugar crusader Robert Lustig has joined University of California, San Francisco, (UCSF) colleagues Laura Schmidt and Claire Brindis to co-author commentary in the February 2, 2012, edition of Nature that advocates regulating fructose like alcohol and tobacco. A specialist in neuroendocrinology at the UCSF School of Medicine, Lustig has garnered attention in national venues such as The New York Times for comparing sugar to a poison and linking it to metabolic dysfunction, cardiovascular disease, diabetes, liver cancer, and other noncommunicable diseases. Details about his previous work appear in Issue 391 of this Update. Titled “The Toxic Truth About Sugar,” the latest article in Lustig’s arsenal maintains that because people in the developed world consume “an average of more than 500 calories per day from added sugar alone,” fructose now meets the four criteria used by public health advocates to justify regulation; that is, “unavoidability (or pervasiveness throughout society), toxicity, potential for…
Massachusetts Governor Deval Patrick (D) has proposed eliminating the state’s sales tax exemption on soft drinks and candy to combat obesity and control rising health care costs. Included in his fiscal year 2013 budget recommendation, Deval’s plan would reportedly raise $61.5 million targeted in large part to preserving public health programs and preventative care services. “In the past 10 years, the percentage of Massachusetts adults with diabetes has almost doubled, and obesity will soon pass smoking as the leading cause of preventable death,” according to a recent budget issue brief released by the governor. “Consumption of candy and soda is on the rise. Per capita candy consumption has increased steadily since the mid-1980s. Candy and soda add significant non-nutritional calories to the diets of Americans and are directly linked to obesity, especially among children.” See News Release of Governor Deval Patrick, January 25, 2012.
A recent study funded by the Robert Wood Johnson Foundation and American Heart Association claims that a penny-per-ounce tax on sugar-sweetened beverages would reduce consumption by 15 percent among adults ages 25 to 64 years. Y. Claire Wang, et al., “A Penny-Per Ounce Tax on Sugar-Sweetened Beverages Would Cut Health and Cost Burdens of Diabetes,” Health Affairs, January 2012. Researchers apparently used data from the National Health and Nutritional Examination Survey (2003-06) to estimate that, between 2010 and 2020, the tax would “prevent 2.4 million diabetes person-years, 95,000 coronary heart events, 8,000 strokes, and 26,000 premature deaths, while avoiding $17 billion in medical costs.” In addition, the scheme would purportedly raise $13 billion in annual tax revenue. In particular, the study notes that the “low price of these beverages, along with their mass marketing, has undoubtedly fueled their widespread overconsumption by both adults and children,” who allegedly drink as much…
The Constitutional Council of France recently approved a tax on sweetened soft drinks to combat the healthcare-related costs of obesity. Effective January 1, 2012, the tax adds 1 euro cent per can and is expected to generate €120 million ($156 million) in state revenue to fund lower Social Security contributions by farm workers. “Obesity is rising as swiftly in France as it is in other EU countries and action must be taken before it gets any more serious,” a French health ministry spokesperson was quoted as saying. See France 24, December 28, 2011; Daily Mail, December 29, 2011.
During a recent discussion about family and childhood nutrition sponsored by the Brussels-based think-tank Friends of Europe, the World Health Organization’s representative to the European Union reportedly called for imposing steep taxes on salty and sugary foods to address excessive eating. Roberto Bertollini apparently claimed that the campaign against tobacco, including high taxes and government regulation of tobacco use and advertising, provides a model to address increasing rates of obesity. He also called for restrictions on junk-food advertising and government efforts to promote healthy eating habits and exercise. Others participating in the forum reportedly suggested that parents and schools play a role in getting children to adopt healthier lifestyles. See EurActiv, December 6, 2011.
Kelly Brownell, director of Yale University’s Rudd Center for Food Policy & Obesity, recently authored commentary for Time magazine’s online opinion section, advocating “a penny-per-ounce tax on any beverage with added sugar.” According to Brownell’s October 24, 2011, article, “Nearly 20 states or cities in the U.S. have considered or are considering the possibility of a tax on sugar-sweetened beverages (SSBs),” but their efforts have allegedly been thwarted by the beverage industry “in ways reminiscent of the tobacco industry when it came under attack in the 1950s.” Drawing parallels between the two products, Brownell dismisses claims that SSB taxes would be “discriminatory” and ineffective by pointing to successful government efforts to reduce smoking. He also calls out groups such as Americans Against Food Taxes for seeking to emulate grassroots movements and contribute to obesity-related research. In particular, Brownell criticizes the Foundation for a Healthy America for purportedly donating $10 million…
