The Centers for Disease Control and Prevention (CDC) hosted a “Weight of the Nation” conference July 27-29, 2009, in Washington, D.C., to explore ways of tackling the nation’s escalating rates of obesity. Treating obesity-related conditions such as diabetes, heart disease and arthritis reportedly costs some $147 billion annually. Speakers at the inaugural event included CDC Director Thomas Frieden, who was quoted as saying that taxing sugary drinks at $.01 per ounce could produce $100 billion to $200 billion over the next decade. “Anything that decreases the availability and increases the cost is likely to be effective. The challenge, I think, is a political one of getting that approved,” he said. Frieden further asserted that average American adults are 23 pounds overweight, consume 250 more calories daily than 10 years ago and that about 120 of those calories are from sugary beverages. In a related development, CDC issued a report on…
Tag Archives tax
The Center for Science in the Public Interest (CSPI) has written to Senate Finance Committee Chair Max Baucus (D-Mont.) requesting that the federal government “levy a tax on non-diet soft drinks to recoup some of the costs incurred by the government from the consumption of these drinks, as well as to reduce consumption.” Others signing the June 17, 2009, letter are the American Public Health Association, Consumers Union, Physician’s Committee for Responsible Medicine, Kelly Brownell of the Rudd Center for Food Policy and Obesity at Yale University, and Walter Willett of the Harvard School of Public Health. Claiming that “soft drinks are the only food or beverage shown to have a direct link to obesity,” CSPI contends that “a new federal excise tax of one penny per 12-ounce soda could generate more than $1.5 billion per year” and that even higher taxes “could raise roughly $16 billion a year— an…
The British Court of Appeal has determined that “Regular Pringles,” a snack food made by Procter and Gamble, are subject to the value-added tax under a provision that applies to “potato crisps, potato sticks, potato puffs and similar products made from the potato, or from potato flour, or from potato starch.” Revenue & Customs v. Procter & Gamble UK, [2009] EWCA Civ 407 (Eng. & Wales Ct. App. (Civ. Div.), decided May 20, 2009). Foods are generally not taxed in Britain, but an exception has been carved out for “food not normally bought primarily for nutrition but eaten as snacks.” The question before the court was whether the Pringles chips, with just 42 percent potato flour content, are “similar to potato crisps and made from the potato.” The company apparently argued that products subject to the tax should be made from 100 percent potato or near 100 percent, to give the…
The Center for Science in the Public Interest (CSPI) has launched a campaign to halve the amount of sodium in prepackaged foods and restaurant meals within 10 years. CSPI Executive Director Michael Jacobson this week presented the group’s case to the U.S. Senate Finance Committee, claiming that “Because it raises blood pressure and increases the risk of hypertension, heart attacks and kidney disease, salt is arguably the most harmful ingredient in our food supply.” According to Jacobson, “Gradually reducing sodium levels in packaged and restaurant foods by half would ultimately save an estimated 150,000 lives and billions of dollars annually.” Jacobson’s testimony underscored a concurrent CSPI exposé on restaurant meals that contain more than 4,000 mg of sodium per plate. The consumer advocacy group apparently examined meals at 17 restaurant chains, finding that “85 out of 102 meals had more than a day’s worth of sodium, and some had more…
“Because excess consumption of unhealthful foods underlies many leading causes of death, food taxes at the local, state and national levels are likely to remain part of political and public discourse,” claims this editorial co-authored by Yale University’s Rudd Center for Food Policy and Obesity Director Kelly Brownell and New York City Health Commissioner Thomas Freiden, who write in favor of a penny-per-ounce excise tax on sugar-sweetened beverages. Describing these products as “the single largest driver of the obesity epidemic,” the article compares a soft drink tax to similar taxes on tobacco “that have been highly effective in reducing consumption.” The authors specifically argue that an excise tax would help (i) reduce health care and other societal costs for obesity and diet-related diseases; (ii) correct an “informational asymmetry” between marketers and younger audiences, “who often cannot distinguish a television program from an advertisement”; and (iii) generate revenue, “which can further…
New York Governor David Paterson (D) has reportedly proposed an 18 percent tax on soft drinks and other non-diet sweetened beverages as part of his plan to lessen a $1.5 billion shortfall in the state’s annual budget. The tax would purportedly raise $404 million, but industry leaders have called the maneuver a “money grab” that would hurt union jobs at major bottlers located in the state. “We think that everybody has to keep in mind that we’re in a recession, and in an economy like this, the last thing we should be doing is raising taxes on everyday needs like clothing and groceries. That doesn’t wash with the consumer,” an American Beverage Association spokesperson was quoted as saying. See Times Union, December 14, 2008; Advertising Age, December 15, 2008. Meanwhile, a recent New York Times op-ed column hails the proposal as a “landmark effort that, if other states follow, could help…
