
Following Obama's recent statement of potential support for soda taxes, a recent
report published in the
New England Journal of Medicine suggests that levying such taxes could not only help curb obesity rates, but will also help states generate much needed revenue to pay the high helath costs related to diet-related diseases.
The report, whose authors include the Yale Rudd Center's
Kelly Brownell and Children's Hospital Boston physician
David Ludwig, that a penny per ounce
tax on sodas and other sugary beverages could raise an estimated $14.9 billion in tax revenue in its first year and approximately $150 billion within 10 years (the tax would be levied on soda producers and wholesalers instead of retailers to facilitate enforcement).
And, more importantly, the taxes would lower consumption of soda and other sweet drinks enough to lead to a small weight loss and reduced health risks among many Americans. The study cited
research on price elasticity for soft drinks that has shown that for every 10 percent rise in price, consumption declines 8 to 10 percent. The proposed tax would raise the price of a 20-ounce drink by approximately 15 to 20 percent. If consumers were to drink one fewer 20-ounce drink daily in response to the tax, each would consume about 174 fewer calories a day, the authors wrote. This all makes perfect sense, right?
The food and beverage industry, however, is on the attack and determined that this proposal does not see the light of day. Earlier in the summer, the industry created a front group,
Americans Against Food Taxes - whose members include a "Who's Who" list of junk food purveyors, to launch a coordinated public awareness and lobbying effort that will attempt to divert any responsibility for the obesity epidemic away from the industry. It's clear that the food industry believes the soda tax proposal is misguided and puts unfair focus on a single product.
“If you take diseases related to diet, with obesity as the most visible, where do you start?”
said Kelly Brownell, the report’s lead author. “We thought we’d start where the science is strongest. Liquid calories are a target because the body has trouble understanding those calories in a way that allows you to regulate body weight.” Soda and other sugary drinks have been linked to more calories eaten, leading to more pounds, according to background information in the report.
When you consider the spiraling costs of obesity (recently estimated at
$147 billion in the US for 2008) and the food industry's irresponsible and ubiquitous marketing of sodas and junk food, it seems like this may be a policy proposal that is well overdue. Let's not forget that states have been paying for the high health costs of tobacco related illnesses by taxing tobacco products, which has also been useful in lowering smoking rates.
If it worked for tobacco, wouldn't soda taxes help reduce obesity and raise much needed funds for health care associated with diet-related illnesses?
(Photo illustration by Katye Martens and Ramon Padilla, USA TODAY)