Beverages

Soda Tax'

San Francisco eyes surcharge on sugary drinks

SAN FRANCISCO -- San Francisco Mayor Gavin Newsom wants the city to slim down, and he's going after stores that sell sugary soft drinks to finance the effort.

The mayor is proposing that grocery chains pay a fee if they sell sodas such as Coca-Cola or any other drinks that are sweetened with high fructose corn syrup, according to a report from ABC News.

If the plan is approved by the Board of Supervisors, the funds raised would help pay for a city initiative focusing on healthy eating and exercise.

Newsom is framing the measure as a fight against chronic obesity, which strains the city's health-care system, but critics say the government is going way too far.

David Harsanyi, author of the book "Nanny State," said, "It's an egregious undermining of freedom. The freedom to choose what I eat and what I don't eat."

The American Beverage Association calls it a "soda tax" and points out, among other things, that the government does not tax computer and video-game manufacturers that are keeping people on the couch and out of shape. Opponents say personal freedom is under attack across the country.

But the charismatic mayor thinks obesity rates across America easily justify the measure.

"I think everybody in this country understands the cause-and-effect [relationship between] calorically sweetened beverages and incidences of obesity in this country, and obesity becoming an increasing, problematic health risk," he told ABC News.

According to Newsom, the fees are a small cost to bear in comparison to the "obesity rates and overweight issues in this country." Of the 65% of Americans considered overweight, studies show roughly one-third are considered "obese," weighing 30 more pounds over their ideal weight.

"That is a health-related cost that all of us are bearing and, in San Francisco, the numbers are consistent," Newsom said.

But some residents think it's one thing to discourage citizens from doing "the wrong thing" and another to impose taxes that would force them to do "the right thing."

But numerous cities and companies have done the latter. In southern Los Angeles, the City Council recently voted to stop fast-food restaurants from opening for a year so that it could study the linkages among race, obesity and fast food.

New York City imposed a trans-fat ban this summer, requiring that restaurants switch to ingredients that use less than half a gram of fat per serving for frying and spreads.

The idea of taxing unhealthy products is premised on the alcohol and tobacco model. The rising costs of alcohol and tobacco products over the years, fueled in part by rising taxes, led to subsequent declines in their consumption. Studies have shown that as the cost of alcohol climbed in the 1980s and '90s, drinking declined. Smoking prohibition in restaurants and offices and exorbitant cigarette taxes have cut in half the number of male smokers and cut down the number of female smokers by 25% studies show.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Opportunities Abound With Limited-Time Offers

For success, complement existing menu offerings, consider product availability and trends, and more, experts say

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

Trending

More from our partners