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  Tax: Soft Drinks Being Singled Out
Posted on Wednesday, March 08 @ 07:48:46 EST by samantha
 
 
  USA

This soda tax scheme is the latest to surface as liberals scramble to try and figure out how to pay for their proposed government take-over of health care.

Singling out soda may make addressing the obesity problem easy, but it doesn't make it effective. And I think the danger is that this approach threatens to distract attention from the complex, multifactorial nature of the problem and the many avenues that must be addressed to tackle it effectively.



Taxing “Sin Foods” — Obesity Prevention and Public Health Policy
Posted by NEJM • November 25th, 2009
As the United States struggles to combat obesity, some health policy experts have asserted that a tax on sugar-sweetened beverages such as soda would lead to reduced consumption of sodas and increased consumption of more healthful beverages — and thus to healthier weights and important reductions in obesity-related health care costs.1 Although we find these assertions unwarranted, we would defend such a measure as an equitable way of tackling the obesity epidemic.
Why wouldn’t a soda tax decrease obesity rates by shifting consumption patterns toward healthier beverages? This is because price elasticity can refer to “own-elasticity” — changes in the patterns of consumption of a commodity in response to changes in its own price — or to “cross-elasticity” — changes in consumption of a commodity in response to changes in the price of another commodity. When it comes to sugar-sweetened beverages, there seems to be some evidence of the former,1 yet no evidence of the latter. Moreover, even if there were cross-elasticity between sodas and more healthful drinks, many beverages that are considered to be “healthy” and that therefore would not be taxed, such as Odwalla smoothies, have as many calories (or more) as an equivalent amount of sugar-sweetened cola.
In addition, although there is no question that spending in obesity-related conditions has increased over the past decade, the critical causes of skyrocketing U.S. health care costs generally — the administrative overhead of a for-profit system2 and the limited market power of health care consumers3 — are logically and empirically unrelated to obesity and would be unlikely to change even if obesity rates decreased dramatically.
So what should be done? Obesity thrives in low-income communities where the quality of food and built environments is poor. Interventions that have been shown to improve those environments include subsidies to farmers’ markets and more healthful school lunches, as well as investments in the creation of bicycling and walking trails.4 If taxes on sodas or similar foods were delinked from the presumed effects of these taxes on obesity or health care costs — effects that manufacturers may well dispute — they could instead be implemented on the stronger grounds that these foods impose societal costs, 5 so those who profit from them should repay society by investing in the populations most affected by obesity. We believe that a revenue-generating approach that redirects “sin taxes” toward improving the food and built environments of low-income populations has the greatest potential both to lead to healthier food choices overall and to reduce disparities in obesity rates.
Claudia Chaufan, M.D., Ph.D.
Gee Hee Hong, B.A.
Patrick Fox, M.S.W., Ph.D.
University of California San Francisco
San Francisco, CA
This article (10.1056/NEJMopv0909847) was published on November 25, 2009, at NEJM.org.
Dr. Chaufan reports serving as the vice-president of California Physicians Alliance (the California branch of Physicians for a National Health Program), serving on the editorial board of Social Medicine, and being a member of the American Diabetes Association and the American Sociological Association. Dr. Fox reports receiving grant support from the California Department of Public Health. No other potential conflict of interest relevant to this article was reported.
References
1.Brownell KD, Frieden TR. Ounces of prevention — the public policy case for taxes on sugared beverages. N Engl J Med 2009;360:1805-1808. [Free Full Text]2.Woolhandler S, Campbell T, Himmelstein DU. Costs of health care administration in the United States and Canada. N Engl J Med 2003;349:768-775. [Free Full Text]3.Anderson GF, Reinhardt UE, Hussey PS, Petrosyan V. It’s the Prices, stupid: why the United States is so different from other countries. Health Aff (Millwood) 2003;22:89-105. [Free Full Text]4.Chaufan C, Hong GH, Fox P. Economic perspectives on public health policies to reduce obesity in California — commissioned by the California Department of Public Health 2009:1-90 (unpublished).5.Cawley J. Markets and childhood obesity policy. Child Obes 2006;16:69-88.
Read
New Tax on the Table for Government
Take-over of Health Care
June 19, 2009
Whether you call it soda or pop, another tax scheme has just emerged from the House Ways and Means Committee to fund a massive government run health care scheme.  This time it’s a 10 cent tax on each can of soda.  That number sounds familiar because President Obama pledged as recently as February that no family earning less than $250,000 would see its taxes increased by “a single dime. Not a single dime.”  I think we can safely assume that there are many families earning less than $250,000 who enjoy a cold soda now and again.
TAKE ACTION to help stop this new tax.
This soda tax scheme is the latest to surface as liberals scramble to try and figure out how to pay for their proposed government take-over of health care.  The big-government believers behind socialized medicine, who want to put your health in the hands of bureaucrats and politicians, have discovered that the price tag is a hefty one indeed.  The plans coming out of Hill committees could easily top $1 trillion over 10 years.  There’s no way this can be accomplished without raising taxes.
Even this soda tax will only bring in $600 billion over 10 years, so other taxes and more borrowing and debt are surely on the way.
This is a tax we can’t afford for absolutely the wrong reforms.  Help stop the government-run healthcare train wreck.  TAKE ACTION and tell your legislators you oppose this soda tax scheme to fund socialized medicine.
There’s no doubt that this will be a long and drawn out fight, but your constant vigilance and action on this crucial issue can help freedom win the day.
Sincerely,
Dick Armey
Chairman
FreedomWorks.org
Liberals want to tax soda to pay for government-run health care

May 12, 2009

During the presidential campaign of 2008, Barack Obama pledged that those making below $250,000 would not see their taxes go up one dime. He promised to cut taxes for the middle class and poor people. But if his friends in Congress get their way, President Obama will have a tough decision to make – whether to break his campaign pledge again in the form of higher taxes on soda and “sugary drinks” like sports and energy drinks.

Some liberals in Congress have proposed paying for government-run health care by hiking taxes on soft drinks and other beverages. Because the socialized health care schemes being considered will cost at least a trillion dollars, liberal politicians are looking for ways to pay for their schemes without upsetting too many folks. So they think that a tax on soft drinks is better than any other type of tax. They are wrong, and need to understand this message loud and clear: NO NEW TAXES!

As if government-run health care weren’t bad enough in terms of quality, now we have another reason to stop it dead in its tracks. Paying for government-run health care will cost every American that enjoys soft drinks, or even sports and energy drinks. This tax and spend scheme is typical of liberals, and only reinforces my belief that this is about them increasing their power, and their control over our lives. We can’t let them get away with it anymore. TAKE ACTION!

The battle against higher taxes and government-run health care is just beginning. But if we can stand together and show our opposition loud enough, we just might be able to defend liberty, and keep more money in our pockets as well.

Sincerely,
Dick Armey
Chairman
FreedomWorks.org
Read



Soft Drinks Being Singled Out as Cause of Obesity Problem; Analogy to Tobacco Seems Detrimental to Public Health Efforts

March 7, 2006
By Michael Siegel
An Associated Press article that appeared in many newspapers nationwide this Sunday explains how efforts to research and fight obesity in this country seem to be focusing on soda as the cause of the problem and as the chief target of public health action.

According to the article: "In reports to be published in science journals this week, two groups of researchers hope to add evidence to the theory that soda and other sugar-sweetened drinks don't just go hand-in-hand with obesity, but actually cause it." ...

"A small point? In reality, proving this would be a scientific leap that could help make the case for higher taxes on soda, restrictions on how and where it is sold -- maybe even a surgeon general's warning on labels."
"'We've done it with cigarettes,' said one scientist advocating this, Barry Popkin at the University of North Carolina in Chapel Hill. Comparing soda and obesity to tobacco and lung cancer is a baseless crusade, industry spokesmen say. 'I think that's laughable,' said Richard Adamson, a senior science consultant to the American Beverage Association. Lack of exercise and poor eating habits are far bigger contributors to America's weight woes, he said." ...

"'There are many different lines of evidence, just like smoking,' said Dr. David Ludwig, a Harvard pediatrician who wants a "fat tax" on fast food and drinks."

One of the lines of evidence indicting sodas that appears in the article is that drinking soda causes poor nutritional intake in other ways: "Sugar-sweetened beverages affect the intake of other foods, such as lowering milk consumption. Popkin contends they also may be psychological triggers of poor eating habits and cravings for fast food. He examined dietary patterns of 9,500 American adults in a federal study from 1999-2002. Those who drank healthier beverages — water, low-fat milk, unsweetened coffee or tea — were more likely to eat vegetables and less likely to eat fast food. Conversely, 'fast-food consumption was doubled if they were high soda consumers, and vegetable consumption was halved,' he said. Harvard epidemiologist Eric Rimm saw a similar effect in a different federally funded study of more than 5,000 young adults. With high soda consumption, 'you see this pattern of less-healthy intake across the board,' he said at the obesity meeting."

The Rest of the Story

Well of course you see less healthy intake of food and drink in persons who have high soda consumption. And of course people who drink healthier beverages like water and low-fat milk are more likely to eat vegetables and less likely to eat fast food. It doesn't take rocket science to figure out that people who drink a lot of soda are, in general, going to have poorer overall nutrition than those who drink a lot of water, unsweetened tea, and skim milk.

When was the last time you saw a guy guzzle down 3 cans of beer while munching on a modest portion of Wheat Thins? And when was the last time you saw someone drinking skim milk to wash down a hefty serving of Hostess Twinkies?

But that is exactly the point. Drinking a lot of soda is simply a marker of poor overall nutrition. And it is poor overall nutrition (combined with insufficient exercise and physical activity) that is responsible for obesity, not any singular effect of soda, or any other particular food or drink item for that matter.

It appears to me that the fervor to make this analogy between obesity and tobacco-related disease has resulted in an overly simplistic view of this public health problem that is spawning a framing of the issue that is destined for failure.

While I don't generally agree with much of what the food industry has to say (although I concede the general point that Almond Joy has nuts and Mounds don't), I do agree with the beverage industry spokesperson who suggested that comparing soda and obesity to tobacco and lung cancer is a baseless crusade.

First of all, while tobacco can be a singular cause of lung cancer (i.e., you can get lung cancer merely from smoking), soda is not a singular cause of obesity. For people who drink a lot of soda but otherwise are careful about their nutrition and who also get sufficient exercise, obesity is not a problem. In other words, soda in and of itself does not cause obesity. It cannot do it alone. Unlike cigarettes.

Second of all, there is not really a healthy level of cigarette consumption. It's not the case that smoking 1/2 pack of cigarettes per day is perfectly healthy but one or more packs per day is harmful. In contrast, if you drink soda in moderation you will not suffer any health impacts.

Third of all, cigarettes are addictive and contain a psychoactive chemical that crosses the blood-brain barrier, a chemical whose level in cigarettes if finely controlled by the manufacturer to enhance addiction. While caffeine has some addictive qualities, it is not at all addictive on the scale of nicotine.

Fourth, smoking is one of only a few exposures that cause lung cancer. Approximately 85% of lung cancer cases are directly attributable to cigarettes. But it is unlikely that any cases of obesity can be directly attributed solely to soft drinks. There are a host of exposures that contribute, in a multi-factorial way, to cause obesity.

It is convenient to pick a scapegoat upon which to blame the nation's obesity problem because it avoids a lot of the difficult work that needs to be done. Singling out soda makes it easy. We just treat soda like cigarettes. Tax it to death. Put a stigma on its use. Put warning labels on it.

But such an approach would take the focus off the real problem: the political, economic, geographic, social, and cultural factors that contribute to poor nutrition and to a dismal lack of adequate physical activity, which combine to create conditions in which caloric intake greatly exceeds caloric expenditure for a majority of the population.

While I am not arguing that soda consumption should not be addressed as part of any larger solution to the obesity problem, I do not see any wisdom in making it the focus of our efforts. But I do see the potential for a lot of damage. Namely, it will likely create a distraction from the larger problems that need to be addressed.

It's just not as simple as putting a tax on soda and a warning label on Coke and Pepsi. It's not as simple as suing soda manufacturers for selling their products to kids in schools and causing children to become obese.

In fact, even if soda were to be completely banned today, I doubt that the obesity problem would be solved. You have to drink something, and with poor nutritional habits, kids would likely substitute other high-calorie drinks for the soda.

If you walk around Boston, the first thing you may notice is that food choices are not equally distributed geographically. The poorer neighborhoods simply do not have access to highly nutritious food choices. Just compare Roxbury and the Back Bay. It's easy to eat healthy in Back Bay. Not so easy in Roxbury. And putting warning labels or high taxes on soda simply isn't going to solve that problem.

And we live in an era where kids can get all the entertainment they want just sitting around a television set. When I was a kid, we just had Atari. But how many games of Breakout could you play before you needed to go outside and run around? Now, you've got Game Boy, Nintendo, Game Cube, Play Station, Play Station 2, XBox, and XBox 360: hours of entertainment and you don't have to leave the comfort of your own living room. And that's before you even consider computer games, chatrooms, or reading and commenting on blogs of all things.

Singling out soda may make addressing the obesity problem easy, but it doesn't make it effective. And I think the danger is that this approach threatens to distract attention from the complex, multifactorial nature of the problem and the many avenues that must be addressed to tackle it effectively.

I think the analogy to tobacco was perhaps the worst thing that could have happened to the obesity control movement. They are just not the same type of problem, and shouldn't be treated that way.


Read more:
Scientist Calls For Warnings, Tax On Soda. "Warning: The Surgeon General has determined that drinking soda can be hazardous to your health." Popkin is also in favor of a soda tax, such as the one on tobacco. He said studies involving the links of soda and obesity are at the same stage as studies on tobacco and health problems several years ago, when those warnings were issued.
 
 
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