In California, big gulps could soon be taxed in a big way.
A bill that would tax sweetened beverages like soda and energy drinks a penny per ounce cleared a hurdle Wednesday in the California Legislature. The state Senate Governance and Finance Committee passed SB-622 by a 5-2 vote, sending the controversial measure on for review by the Senate Health Committee.
“This is the first time this state committee has passed a bill that would place a tax on sugary drinks and the first step toward stemming the epidemic of childhood obesity,” the bill’s lead sponsor, Democratic Sen. Bill Monning said in a news release.
The bill exempts drinks that contain fewer than 25 calories, and the funds raised by the excise tax would go to the state’s newly created Children’s Health Promotion Fund, as well as programs that combat childhood obesity.
“By taxing these products we will be able to implement programs that will assist in preventing disease among children and begin to address a public health crisis whose rising health costs affect all Californians,” Monning said.
Sen. Bill Monning (D-Monterey) says the tax on soda is “a first step toward stemming the epidemic of childhood obesity.”
Not surprisingly, the idea of taxing sweetened drinks does not sit well with the soda industry, which spent millions to defeat ballot measures in two California towns — Richmond and El Monte — that had proposed similar sweetened drink taxes.
The Center for Consumer Freedom, an industry-backed group, vehemently opposes the tax-by-the-ounce idea.
“Taxes shouldn’t be a tool for social engineering or an instrument to penalize Californians for doing nothing wrong,” J. Justin Wilson, a senior research analyst at the center, told the Los Angeles Times. ”Residents of California don’t need a Ph.D. in nutrition to tell them that eating or drinking too much of anything is unhealthy. It only takes a little common sense and personal responsibility.“