Sep 29, 2009

Soda pop tax to help pay for ObamaCare

Congress is considering new federal taxes on soda pop and other sugar drinks to help pay for ObamaCare.

The taxes would pay for only a fraction of the cost to expand health-insurance coverage to all Americans and would face strong opposition from the beverage industry.

They also could spark a backlash from consumers who would have to pay several cents more for a soft drink.

The Center for Science in the Public Interest, a Washington-based watchdog group that pressures food companies to make healthier products, plans to propose a federal excise tax on soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. It would not include most diet beverages.

On one side of the debate are those who say that sugar drinks are harmful and the government should discourage its use.

Others say such a tax would unfairly hit lower-income Americans and wouldn't deter consumption.

The main beverage lobby that represents Coca-Cola Co., PepsiCo Inc., Kraft Foods Inc. and other companies said such a tax would unfairly hit lower-income Americans and wouldn't deter consumption.

"Taxes are not going to teach our children how to have a healthy lifestyle," said Susan Neely, president of the American Beverage Association.

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