Soda Makers Kill Obama's Tax Idea

RockX

Banned
Employing a broad-based lobbying effort, the soft drink industry has smothered a plan to tax sugared beverages -- a plan advocates said would have reduced obesity and helped finance healthcare reform.

Only months ago, public health advocates thought the tax would be a natural for congressional Democrats looking for revenue to fund expanded health insurance coverage. The soaring costs of treating ailments related to excess weight -- including diabetes and heart disease -- added urgency to the issue.

But the White House staff reviewing funding options never embraced the idea even after President Obama expressed interest last summer. A key congressional committee, after initially seeming receptive, ended up refusing to consider it. Several minority advocacy groups, including some committed to fighting obesity, lined up against the tax after years of receiving financial support from the industry.

The coalition, operating under the name Americans Against Food Taxes, included the soft drink makers, their suppliers, and such mass-marketers as McDonald's and Domino's Pizza.

Using the argument that higher food and drink taxes would unfairly burden the poor, the coalition recruited a bevy of Latino groups, among them the Hispanic Alliance for Prosperity Institute, the National Hispana Leadership Institute and the League of United Latin American Citizens.

Public health analysts were surprised to find that the list included the National Hispanic Medical Assn., which represents 36,000 Latino doctors and focuses on health issues, such as obesity-related diabetes, that hit Latino youth especially hard.

"Why in the world would a Hispanic health advocacy group do this?" asked Kelly Brownell, the director of Yale University's Rudd Center on Food Policy and Obesity.

Nearly all of the Latino groups, including the medical association, had received beverage industry money in the past or have industry representatives on their governing boards.

Democratic Rep. John Lewis, the civil rights pioneer who represents Atlanta, the corporate headquarters of Coca-Cola, argued that the soda tax could lead to taxes on other foods, raising prices for hard-pressed consumers during a severe recession. If you begin taxing one sugar product, where do you draw the line?, he asked.


http://www.latimes.com/news/nation-and-world/la-na-soda-tax7-2010feb07,0,3512680,full.story


Democrats are afraid to tax soda for fear of losing the brown vote.
 
Tell them to call Denver and get the State to stop trying to make new taxes without TABOR authorization.
 
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