A coalition of public health advocates argues that creating a soda tax would lower rates of obesity and Type 2 diabetes.
BOSTON -- Want a 12-ounce can of Coke? A can that today costs $1 at a vending machine could cost $1.24 in Massachusetts, if some lawmakers have their way.
A coalition of public health advocates is pushing for the introduction of a new state tax on sugary drinks.
"The goal is to reduce consumption of sugary drinks, replacing it with water and other healthy beverage choices, particularly among children and teenagers," said Sen. Jason Lewis, D-Winchester, who introduced the bill. "This will improve health, lower rates of preventable chronic disease and reduce health care costs over time."
Under the proposal, any drink with less than five grams of added sugar per 12 fluid ounces would not be taxed. A drink with five to 19 ounces would be taxed at one cent per ounce, and a drink with 20 or more grams of added sugar would be taxed at two cents per ounce.
Coca-Cola has 39 grams of sugar per 12 ounces. So for example, a two-liter bottle of Coke that costs $2 today would cost $3.35 with the proposed tax. Sweetened fruit drinks like Ocean Spray Cranberry Juice Cocktail or Nantucket Nectars Lemonade would also be taxed at the two cents per ounce rate.
The Massachusetts Beverage Association, which opposes the tax, said in a statement, "There are much better ways to fund programs important to our communities than a tax that threatens jobs, hurts our local businesses and hits working-class families the hardest." The association said the tax does not address the real causes of obesity and related conditions.
The bill, S.1562, is pending before the Legislature's Committee on Revenue.
All food and drink purchased in a store is now exempt from the state sales tax. Former Gov. Deval Patrick and some lawmakers have previously proposed applying the sales tax to soda and candy. That effort never went anywhere, largely due to reluctance by state lawmakers to raise taxes. This is the first time a new excise tax on soda has been proposed.
Lewis and other advocates argue that sugary drinks are the largest source of added sugar in Americans' diets, and they contribute to health problems like obesity, Type 2 diabetes, heart disease and dental cavities.
"Sugary drinks offer no nutritional value, unlike milk or fruit juice, and are usually consumed in addition to, not in place of, solid calories," Lewis said during a briefing on the bill on Tuesday.
David Ludwig, a doctor at Boston Children's Hospital and director of the New Balance Foundation Obesity Prevention Center, said numerous scientific studies have identified the negative health effects of sugary drinks. "I was unable to find a single health benefit of sugar-sweetened drinks for public health in U.S. populations," Ludwig said.
Lewis said the proposed tax could raise $368 million a year, which he advocated using to establish a new fund to promote health among children.
Massachusetts would be the first U.S. state to establish a soda tax, but other places have been experimenting with similar taxes.
Berkley, California, established a one-cent tax in 2015. Sales of sugary drinks fell 9.6 percent while sales of other drinks rose by 3.5 percent, according to one study.
Mexico's soda tax resulted in a 7.6 percent drop in sugary drink consumption over two years, with the biggest decline in low-income households.
The Massachusetts Beverage Association, however, pointed to other effects of declining sales. In Philadelphia, for example, after a sugary drink tax was instituted, local groceries reported a 20 percent drop in sales and beverage distributors a 50 percent drop, resulting in layoffs. Sales spiked at retailers just outside city lines.
The association noted that sugary drink consumption has declined by 39 percent since 2000 even as obesity and diabetes rates have risen, indicating that many factors are at play.
"The real solution to the obesity challenge is not a tax that costs jobs and hurts working families, but for public health advocates, government and the industry to work together on meaningful steps that improve the health of individuals and communities," the Massachusetts Beverage Association said.
Jon Hurst, president of the Retailers Association of Massachusetts, said the association would not necessarily object to applying the sales tax to soda. The proposed excise tax, he argued, is "punitive" and creates a new category of sin tax. "How many taxes do you really have to pile on the consumer for these products?" Hurst said. "It's kind of a finger wagging type of thing: 'We know better than you, consumer.'"
"It's troubling if you support consumers and their own freedom of choice and their ability to make their own decisions," Hurst said.
Once concern that has been voiced about previous proposals is that the tax is regressive and would have the biggest impact on low-income households. Supporters of the bill respond that health problems related to obesity and nutrition also disproportionately affect low-income households.
Lewis said the money generated by the tax could be directed to helping low-income communities. The money could be used for things like installing water fountains in schools and parks or creating nutrition programs in schools.
