Soda Tax May Trim State Deficits

WASHINGTONA new report from the Center for Science in the Public Interest (CSPI) said states could generate a total of more than $10 billion per year by levying a tax of 7 cents on soda and other sugary drinks. If implemented by Congress in the form of a national excise tax, that $10 billion could make an important contribution toward paying for health coverage for all Americans. Currently, only 25 states impose special taxes on soda and other beverages with added sugar, and all of those taxes are very small.

CSPI said the decrease in soda consumption due to a higher price would help reduce the incidence of obesity, diabetes and other costly chronic diseases. Americans spend approximately $147 billion per year on medical expenditures related to obesity, of which half is paid with Medicare and Medicaid.

CSPIs Web site has a Liquid Candy Calculator that enables legislative staffers or citizens to calculate the revenue their state could raise from sales or excise taxes on sugar-sweetened beverages.