Showing posts with label sin tax. Show all posts
Showing posts with label sin tax. Show all posts

Saturday, September 19, 2009

President Barack Obama hinted he could support a "sin tax" on fizzy drinks to help lower high rates of US obesity


A man drinks a bottle of soda in California. President Barack Obama hinted he could support a "sin tax" on fizzy drinks to help lower high rates of US obesity, but admitted it would be an uphill battle against corporate and economic interests. (AFP/Getty Images/File/Justin Sullivan)

Calif. lawmaker plans hearings on soda-obesity link

In the September 17, 2009 article "Calif. lawmaker plans hearings on soda-obesity link," Lisa Baertlein reports "the California lawmaker who spearheaded a high-profile anti-obesity effort across the country's most populous state is now training his sights on sugar-sweetened drinks."
Sen. Alex Padilla, who led a campaign requiring big restaurant chains to disclose calories in meals, said on Thursday he planned to hold hearings in November on the link between soda consumption and obesity.

The announcement from Padilla -- who chairs the California Senate's Select Committee on Obesity and Diabetes -- coincides with the release of a study that shows nearly two-thirds of children aged 12 to 17 gulp down at least one sugar-sweetened beverage daily.

According to the UCLA Center for Health Policy Research and the California Center for Public Health Advocacy, 62 percent of children aged 12 to 17, and 41 percent of children aged 2 to 11, drink at least one sugar-sweetened beverage a day.

"I don't think that most parents truly appreciate the role soda pop has in causing weight gain," Padilla said. "It is unfortunate that soda is actually cheaper than milk and even bottled water in many instances."

Padilla said California needs to do more to educate the public about the health effects of drinking too much soda and to consider its options for reducing soda consumption among children.

California was the first state to pass menu labeling rules and has been among the pioneers of public health initiatives such as bans on artery-clogging trans-fats in restaurant cuisine and on soda sales in public schools.

Experts say the U.S. obesity epidemic has turned into a public health crisis and overweight adolescents are starting to suffer problems that used to plague mainly middle-aged adults -- early heart disease and type 2 diabetes.

SHARP CUTBACK RECOMMENDED

The American Heart Association in August took on the $115 billion soft drink industry, recommending that Americans cut back dramatically on sugar and singling out soft drinks as the top source of "discretionary" sugar calories.

The group said women should eat no more than 100 calories of added processed sugar per day, or six teaspoons (25 grams), while most men should keep it to just 150 calories or nine teaspoons (37.5 grams).

To put that in perspective, one 12-ounce (355-millilitre) can of soda can contain as much as 13 teaspoons (54.6 grams) of sugar, often in the form of high fructose corn syrup.

That's more than half the total 22 teaspoons (90 grams) or 355 calories of added sugar consumed by the average American each day, according to a 2004 government survey.

Being overweight costs, experts say.

Obesity-related diseases account for nearly 10 percent of all medical spending in the United States, or an estimated $147 billion annually. Health experts increasingly are calling for taxes on soft drinks and other sweetened beverages to offset medical costs and fund public health efforts.

"If we are serious about curbing the obesity epidemic, we have to start with the biggest culprit," said Harold Goldstein, executive director of the California Center for Public Health Advocacy.

A strongly worded report on child obesity released earlier this month recommended that state and local governments tax junk food and soft drinks, give tax breaks to grocery stores that open in blighted neighborhoods and build bike trails. Some public health experts would like to see tax proceeds used to make fresh fruits and vegetables more affordable.

The American Beverage Association has opposed efforts to tax soda and other beverages and says it provides a wide variety of beverage choices, including drinks with zero calories.

"If our goal is to address obesity, then educating consumers about the importance of balancing calories consumed from all foods and beverages with the calories expended through physical activity is what matters -- not demonizing any one particular food," the group said in a statement on Thursday.

An industry group called Americans Against Food Taxes -- whose backers include soft drink maker PepsiCo Inc, the American Beverage Association, the Corn Refiners Association and McDonald's Corp -- is running anti-soda tax advertisements on television, radio and on the Internet.

Wednesday, July 22, 2009

Is Marijuana the Answer to California's Budget Woes?


A July 22, 2009 article by Tom McNichol in TIME magazine asks "Is Marijuana the Answer to California's Budget Woes?":
Proponents of marijuana legalization have advanced plenty of arguments in support of their drug of choice — that marijuana is less dangerous than legal substances like cigarettes and alcohol; that pot has legitimate medical uses; that the money spent prosecuting marijuana offenses would be better used on more pressing public concerns.

While 13 states permit the limited sale of marijuana for medical use, and polls show a steady increase in the number of Americans who favor legalization, federal law still bans the cultivation, sale, or possession of marijuana. In fact, the feds still classify marijuana as a Schedule I drug, one that has no "currently accepted medical use" in the United States.

(See a TIME video on Medical Marijiuana Home Delivery)

But supporters of legalization may have been handed their most convincing argument yet: the bummer economy. Advocates argue that if state or local governments could collect a tax on even a fraction of pot sales, it would help rescue cash-strapped communities. Not surprisingly, the idea is getting traction in California, home to both the nation"s largest supply of domestically grown marijuana (worth a estimated $14 billion a year) and to the country"s biggest state budget deficit (more than $26 billion).

On Monday, Gov. Arnold Schwarzenegger and the California legislative leaders a tentative budget agreement to plug the state's deficit, but it would involve making sweeping cuts in education and health services, as well as taking billions from county governments. Democratic state assemblyman Tom Ammiano has introduced legislation that would let California regulate and tax the sale of marijuana. The state's proposed $50 an ounce pot tax would bring in about $1.3 billion a year in additional revenue. Ammiano's bill was shelved this session but he expects to introduce a revised bill early next year.

(Read "Can Marijuana Help Rescue California's Economy?")

If the state legislature doesn"t act, perhaps California voters will. One group is preparing to place a statewide initiative for the November 2010 ballot that would regulate and tax the sale of marijuana for Californians 21 years of age and older. Tellingly, the group spearheading the measure calls itself TaxCannabis2010.org, stressing the revenue advantages of marijuana legalization. The group hopes to collect the required 650,000 voter signatures by January to place the measure on the November 2010 ballot.

"There"s no doubt that the ground is shifting on marijuana," says Ethan Nadelmann, executive director of the Drug Policy Alliance, which promotes alternatives to the war on drugs. "The discussion about regulating and taxing marijuana now has an air of legitimacy to it that it didn"t quite have before. And the economy has given the issue a real turbo charge."

(Read "Can Marijuana Help Rescue California's Economy?")

The legalization effort is getting serious consideration from surprising quarters. In May, Gov. Arnold Schwarzenegger publicly called for a large-scale study to determine whether to legalize and tax marijuana.

"I think it"s time for a debate," the governor said at a news conference. "I think we ought to study very carefully what other countries are doing that have legalized marijuana and other drugs."

(See a TIME photoessay on Cannabis Culture)

In California, medical marijuana sales are already taxed, and some communities are looking for ways to get a bigger slice of the pot pie. Residents Oakland are currently voting in a mail-in special election that includes a measure which would make the city the first in the country to establish a new tax rate for medical marijuana businesses. If the measure passes, Oakland marijuana dispensaries, which are now charged at the general tax rate of $1.20 per $1,000 in receipts, would see that rate raised to $18 per $1,000.

A Field Poll conducted in California this spring showed 56% of the state"s registered voters in support of legalizing and taxing marijuana as a way of offsetting some of the budget deficit. Several national polls have shown that more than 45% of American adults are open to legalizing pot, about double the support a decade ago.

Even the most ardent marijuana advocates aren"t expecting nationwide legalization anytime soon. Instead, any action is likely to come on the state and local level. For now, all eyes are on cash-strapped California, where high taxes could take on an entirely new meaning.