Soft drinks are going to cost more in New York State says Jonathan Birchall of New York. With a new proposal by the state to impose an ‘obesity tax’ on high calorie soft drinks, your non-diet version of Pepsi and Coke is going to cost you more. The state has seen a deficit of $13.3biilion, and this new tax proposal will help fill the state’s coffers, while keeping in mind the health benefits of citizens.
David Paterson, the governor of New York, proposes a host of measures to check this huge deficit. Some of his measures include calling for spending cuts and extra sales fees on luxury items like boats and furs. Mr. Paterson’s proposal is for an increase in tax of nearly 15%. He however has no proposal to raise the state’s income tax.
With most states in the U.S. levying sales tax on soft drinks, snacks and sweets, this proposal by New York State to tax health hazard foods is new. New York has the highest sales tax rate and with the present proposal to levy an additional tax would help it raise more than $400 million.
California and New York state legislators’ decision to levy taxes on fat foods is going to face stiff opposition from soft drinks giants like PepsiCo and Coco-Cola. Anti-obesity campaigners have long been asking for a ban on sugared soft drinks that are causing health concerns. Studies indicate that Americans consume large amounts of sugared soft drinks that lead to high calorie intake and increased weight in the body leading to obesity. A rival review contradicts this statement saying obesity has nothing to do with intake of sugared soft drinks.
