Soft Drinks May Be In For A Hard Time

Asserting in his testimony before the Finance Committee on May 12th that "soft drinks are the only food or beverage that has been shown to increase the risk of overweight and obesity, which, in turn, increase the risk of diabetes, stroke, and many other health problems," CSPI executive director Dr. Michael F. Jacobson argued that the tax would discourage consumers from consuming soft drinks at their current levels.

While the Congressional Budget Office estimates that a three-cent tax per 12-ounce can would generate $24 billion over the next four years, it would ultimately be the consumers paying this tax and not the beverage companies. An excise tax, by its very nature, would be levied on the beverage producers and passed on to consumers in the form of higher prices.

Jacobson is not alone in his beliefs regarding the negative health effects caused by a sustained consumption of soft drinks. A study last month found that liquid calorie intake (predominantly from sugar-sweetened beverages) had a much greater impact on weight than solid calorie intake. A similar study in the journal Pediatrics in 2006 showed a direct correlation between weight gain in teenagers and the consumption of soda and other sugary drinks.

Research reported at a national meeting of the American Chemical Society in 2007 found that soft drinks sweetened with high-fructose corn syrup may contribute to the development of diabetes, particularly in children.

Responding to Jacobson's proposal, Susan Neely president and chief executive of the American Beverage Association, which represents Coca-Cola Co., PepsiCo Inc. and others, stated that the focus should be on teaching our children how to maintain a healthy lifestyle and on lowering consumption of sugary drinks in schools. Neely reasoned that a federal excise tax on soft drinks would hit poor Americans hardest and would not lower consumption. "A tax won't teach children these skills or have a lasting, meaningful impact on reducing childhood obesity," Neely said in an interview with the Wall Street Journal.

Although any form of a soft drink tax is still a far way off, one thing is for sure: sodas appear to be losing their fizz.

Peter Washkowitz
petercure@gmail.com
www.RunnersWrite.com