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Soda Tax Possibility Brings Out the Lobbyists 
The food industry increased their congressional lobbying efforts to ward off any proposed tax on sugar-sweetened drinks.

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Posted: Nov 9, 2009     Email    Print    Print ALL    Comment   

WASHINGTON – During the first nine months of this year, soft drink manufacturers, grocery stores, fast-food restaurants and other groups have spent more than $24 million on stopping the possibility of a national tax on sugar-sweetened drinks, the Huffington Post reports.

A review of lobbying reports on file with the Senate Office of Public Records reveals that 21 groups specifically lobbied on the proposed sugar-sweetened beverage tax. Some of the money went for a national ad campaign and promotion for the Americans Against Food Taxes coalition.

Health advocates and others have pointed to sugary beverages as contributing to the rising obesity rates in the United States, especially in relation to children. In May, the Senate Finance Committee listed a national excise tax on soft drinks as a possible funding source for health care reform. Thus far, the issue has not gained traction on Capitol Hill, although some states have begun to look into such a tax.

Last week, California legislators held a hearing in Los Angeles to look into whether a link between obese children and sugar-laden drink consumption exists. New York Gov. David Paterson has brought back a sugar-sweetened drink tax after lawmakers defeated an earlier proposal.

"To say soda is the only cause of obesity, that’s not correct. Just walk down the street and count the number of White Castles or Burger Kings or Jack in the Box,” said Nelson Eusebio, executive director of the National Supermarket Association, which opposes the tax. “If we eliminate soda, would people stay away from fried food, hot dogs and all the other junk out there?”

Soda tax supporters often use tobacco as a comparison, saying that since sugary drinks contribute to health-care costs, users should pay a tax. Other groups lobbying to prevent a national excise tax on sugary beverages include the National Corn Growers Association and the American Beverage Association.

Learn more about the latest developments on the soda tax in the upcoming December issue of NACS Magazine.