A tax on sodas and other sugary drinks is being debated as a possible solution to reduce consumption and to raise funds for public health care initiatives. William Neuman of The New York Times reports that opinions about the tax vary: President Obama said it is worth considering, while the CEO of Coca-Cola called the idea outrageous.A team of prominent doctors, scientists and policy makers, including New York City health commissioner Thomas Farley and Arkansas surgeon general Joseph W. Thompson, estimate that a tax of one penny per ounce would raise $14.9 billion in the first year alone. The tax funds could be spent on health care initiatives. The group's review of research appears in the New England Journal of Medicine. The article is available online here.
Those in the industry are concerned about the impact of higher prices. John Sicher, the publisher of Beverage Digest, points out that a two-liter bottle of soda selling for about $1.35 would have 50% added to its price and that a 12-can case of soda selling for about $3.20 today would increase by $1.44.
But the question remains whether an increase in prices for sugary drinks will result in a decrease in the waistline of Americans.
To read more from Nueman's article in The New York Times, click here.
Posted: 09/17/09
