Taxes: Soda

Taxes: Soda

The Soda Tax is considered one of the “Sin taxes,” which are levied on activities or products that are considered socially undesirable. Other common targets include alcohol and tobacco. Sin taxes are often meant to act both as a disincentive for specific behaviors and as a means to generate public revenue. For example, cigarette taxes are intended to help people quit smoking and taxes on soft drinks to reduce obesity. Revenues are sometimes targeted at health and social programs that ease the problems created by the use of the product.

Commentary

Soda taxes

The Soda Tax Wars

April 20, 2010

Cry Wolf Quotes

[Back Yard Burgers] knew about the [Arkansas soda] tax when it made the move, but it wasn't much of a concern. "It really didn't enter into it at all," King says.

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Stephen J. King, Back Yard Burgers' chief financial officer
01/20/1997 | Full Details | Law(s): Arkansas Soda Tax

This could be $10,000 a year on my bottom line. This is not the way to do it: Every time we need something done raise taxes. I couldn't run my business this way.

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Lee Fritz, who owns five Burger Kings in the Bremerton area. Seattle Post-Intelligencer.
10/21/1994 | Full Details | Law(s): Washington Soda Tax

This is a great example of railroading a program through the system without thought of who will be paying for it or why. There was no public hearing, no contact whatsoever with our industry. The program's goal is worthwhile, but the method of funding and the lack of public input is unconscionable

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Carl Behnke, president of ALPAC Corp., the region's largest Pepsi bottler. Business Wire.
05/05/1989 | Full Details | Law(s): Washington Soda Tax

People on the other side of the issue, I understand where they're coming from. They want their product funded. But my industry is paying the tax to some degree. That's the bottom line. Admittedly, some of the tax is passed on, but my restaurant and food service operators are paying some of this tax out of their own pocket.

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Wayne Dyer, executive director of the Arkansas Hospitality Association. Arkansas Democrat-Gazette.
01/26/1997 | Full Details | Law(s): Arkansas Soda Tax

Resources

The Center on Budget and Policy Priorities (CBPP) is a think tank focused on tax and fiscal policy. They provide in-depth analysis of state issues.

Citizens for Tax Justice is an organization that represents low and middle income citizens in the tax debates on Capitol Hill.

The Center for Science in the Public Interest, since 1971, has been a leading advocate for nutrition and health, food safety, alchohol policy, and sound science.