Soda Tax = Tax Grab

coca cola coke

It looks like my prediction of a American Soda Tax may soon come true.

According to ABC News, “several of the nation’s leading health experts are calling for a tax on soda as a means of curbing America’s obesity-epidemic”.

But wait, here’s the good part:

Their paper, appearing in the most recent issue of the New England Journal of Medicine, calls for a tax on “sugar-sweetened” drinks in order to reduce the consumption of the drinks and lower health costs as well as fund government-run health programs.


“A tax on sugar-sweetened beverages is really a double-win,” said Dr. David Ludwig, a co-author of the paper and director of the Optimal Weight for Life program at Children’s Hospital, Boston.

“We can raise much-needed dollars while likely reducing obesity prevalence, which is a major driver of health care costs, the paper states.

“Ultimately the government needs to raise more money to cover the deficit, and in terms of ways of raising that revenue, a tax on sugar sweetened beverages is really a no-brainer.”

So, there you go.

Just like I said here, the government will take advantage of America’s Obesity Epidemic™ and introduce a soda tax in order to help reverse the defecit.

But will it help reduce the nation’s obesity problem?

According to the latest research, small tax increases will have little effect on behavior.

On the other hand, big tax increases should do the trick. Especially for America’s poor.

So, there you go, just like I predicted:

5 Bucks for a Can of Coke


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  1. I am going to predict how this is going to go down…

    They will ban sugar, so soda companies will start producing more diet soda

    When fewer people drink soda thanks to the tax and drop in prpduction (which means the tax revenue will decline) they will now need a new stream of revenue, and since the door has been opened, they will begin taxing high sugar foods.

    Left in near orgasmic joy over this seeming endless new stream of revenue from food taxes legislatures will get even more money hungry (pun intended). All the fads will soon have taxes associated with them: high fat, high calorie, processed foods, etc.

    And then worst of all, if global warming hysteria continues to build, they will begin to tax meats like beef and lamb and pork to discourage their consumption. Then the revolution begins 😉

    This is a rabbit whole I would prefer to avoid jumping into.

  2. I agree with you John. I think this is a new way to steal from us to replace the tobacco taxes they are losing.

  3. I would bet against a total ban against sugar mainly because if they ban it, they can’t collect tax revenue.

    I think they will aim to duplicate the tobacco tax model. However, this is a much more complicated issue than tobacco.

    When the gov’t went at tobacco, they only had to deal with the tobacco lobby. When they go after sugar, the gov’t will have to deal with the farming and food producer lobby groups…and the soda and junk food producers…and everyone else who uses some form of sugar.

    And then we need to look at the medical insurance companies, drug companies and mainstream medicine.

    Not to get all conspiracy theory, but type 2 diabetes is a big money maker. The avg 2 diabetic spends $400,000 on their disease over their lifetime. And as we all become diabetic, this means a lot of $$$ for these 3 groups…until it bankrupts the entire nation (but that’s another discussion)

    It’s very complicated

    On a happier note, I just heard about this group of kids who have started a grassroots community to help reverse childhood obesity. I think that movements like this could have way more success than any big brother type of plan

  4. Completely tangential, but I’ve had surgery at the childrens hospital in Boston, and it’s a beautiful hospital that I don’t want to put down entirely, but their cafeteria is kiddie junk food heaven. I remember eating make your own sundaes instead of dinner each night.

    And yes, tobacco lobbyists are a beast, but king corn is even worse, in part because if corn reaches a surplus, our economy simply will suffer. So you may find that individuals who have supported legislation against tobacco in the past are less likely to lash out on American grain farmers in this economy. I don’t think we are in a different situation from tobacco at all.

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