GEDDES -- Opposition to Governor Paterson's proposed tax on sugary drinks is gaining momentum. At a rally at the Coca-Cola facility in the Town of Geddes Friday afternoon, more than one hundred workers joined with union leaders, beverage industry executives, and State Senators John DeFrancisco and David Valesky to oppose the tax.
The excise tax would amount to $1.28 for every gallon of a sugary drink, or about a penny for every ounce of a soft drink. Governor David Paterson says that he sees a twofold benefit. He says the soda tax would help offset the state deficit, and it would encourage New Yorkers to make healthier choices thereby reducing health care costs. Paterson figures the tax on soft drinks would raise $465 million, which he says would be used to prevent deeper cuts to health care in the proposed budget.
The beverage industry says soft drinks and similar drinks only comprise five percent of the American diet. Coca-Cola Vice President Toney Anaya says, "We think it's very unfair to propose you're going to solve obesity by taxing a tiny sliver of the American diet."
Opponents at the rally say the tax will will cut consumption and cost New York State more than 6,000 jobs. Rene Patterson of the Quickway Food Stores predicts a tax on sodas and other beverages will "encourage people to go to the bordering states around Pennsylvania, downstate, and also to Native American stores where they won't have to pay the tax."
State Health Commissioner Richard Daines accuses the Food Industry Alliance of trying to hype up a misunderstanding about job losses from the proposed tax. "No dollars leave the New York economy." Daines told CNY Central, "People either make other choices with their beverage dollar and jobs are there for that. If we collect taxes, it goes right back into health care where it protects jobs."
Daines also said in a statement that "The fear that people will lose jobs as a result of a sugared beverage tax is unfounded. All of the soda companies and bottling companies, in addition to bottling sugared beverages, are producing many zero calorie and low calorie beverages. If consumption of sugared beverages decreases, as we hope it will as a result of this tax, these companies can compensate by increasing the production of their zero and low calorie products. People will modestly reduce their consumption of sugared beverages and will replace these with the zero calorie and low calorie products already being produced and bottled by these same companies.”
Daines continued, saying “Those who argue that we don’t need another tax should let people decide if they want to pay taxes that support health care programs and public health initiatives that will help prevent obesity, as this tax will do, or if they want to continuing paying a large chunk of their taxes to pay for health care to treat the health problems caused by overweight and obesity. New Yorkers are already paying $8 billion a year for health care for obesity-related conditions through the Medicaid and Medicare programs as well as through their health insurance premiums. The portion of state and federal taxes that currently goes to pay for treatment of obesity-related diseases averages $771 per New York household per year.
“With the sugared beverage tax we have an opportunity to achieve a triple play: improved health for New Yorkers, reduced health care costs, and much needed revenue for health care.”
New Yorkers Against Unfair Taxes has launched a petition drive in hopes Governor Paterson will drop the soda tax proposal like he did last year. For more information, go to: www.nobeveragetax.com.
