There’s been lots of talk here regarding the FY 2011 budget is the proposed D.C. Beverage Tax, a 1-cent-per-ounce tax on sugary-drinks and sodas in District grocery stores. Opponents have gained momentum and as Councilwoman Mary Cheh and her colleagues reconsider their options, I think it is important to look at the potential impacts this tax (and it’s alternatives) could have on Bread for the City clients and other vulnerable families in Washington, D.C.
The 1-cent-per-ounce tax was first proposed by the federal government last year– like the D.C. tax, the legislation would increase the cost of a 12-pack of soda by $1.44 and a 2-liter bottle by $0.68. Since then, 30 states have put a small sugary beverage tax into place, although only 2 (Arkansas and West Virginia) have taxes specifically on sodas. D.C. would be the third local government to impose such a tax on the voting public and despite reassurances from the Council, opposition has loomed large.
Mary Cheh, the councilwoman who first proposed the bill as part of her Healthy Schools Act of 2010, says the tax would generate between $6 million and $9 million, money earmarked for improved physical education programs, school nutrition and building grocery stores and farmers markets in the poorest Wards of the District (5, 6, 7, and 8).
The American Beverage Association (ABA), however, says this is not the way to raise money. “We understand that governments are facing tough budget challenges,” Susan K. Neely, president and CEO of the ABA, said, “but singling out one item for taxation completely misses the mark in having an effect on the national challenge of obesity.” And even the council members admit that the tax would have little if any impact on obesity itself. (In fact, studies show a tax would have to be as high as 18% to make any significant dent in obesity in the District). Additionally, opponents argue, the tax would negatively impact low-income families, who now, more than ever, cannot afford to pay more for their groceries.
And here, we get to the heart of the matter. As an employee of a local grocery store and an intern with Bread for the City, a local non-profit that provides food, medical, legal and social service to low-income D.C. residents, I have found this is an issue to be tackled head on, with facts in hand and an open mind. Unfortunately, many are woefully unaware of the intricacies of the issue, much less of the impacts it could have on those who cannot necessarily afford a new tax (as opposed to it being an albeit significant inconvenience).
Rosa Garcia, one of the lab technicians at the Bread for the City medical clinic said that the tax would, in fact, have negative impact on our clients but only because they will continue to make unhealthy choices. People like soda, it is what they like to drink, said Rosa, and it’s just like cigarettes. Just because it costs more doesn’t mean they won’t buy it. (Cheh has a similar response, emphasizing that the money from the beverage tax will help increase the health-food options for families who might otherwise choose soda.)
Rosa also pointed out that if the money does indeed improve food choice options in low-income areas and promote health initiatives in schools, Bread for the City clients would benefit greatly. “Obesity is a big problem here in this clinic, as it is in all clinics everywhere.” In terms of children, Health Affairs published a report in April, 2010 which found the tax “could benefit at-risk children, children who are already obese, come from low-income families, or are African-American, especially when soda is available at schools.” The impact, however, will come from the dedication of the tax revenues to obesity prevention initiatives, rather than a direct effect on the level of childhood obesity in D.C. schools.
So when voting time comes, consider both sides. Will the soda tax hurt or help families? Will they continue to by expensive beverages or will they opt for healthier choices? But before you call your council-member (which indeed you should do), consider the following: Cheh says that if the beverage tax fails in the face of what has proved to be a staunch opposition, the next step will be an overall increase in the overall sales tax. It doesn’t take a lab technician to see that such a measure will, invariably, affect us all.
D.C. Council Member Mary Cheh’s proposed beverage tax would include much more then just soda. Cheh’s proposal would target all sugary beverages. Sport drinks, juices, iced tea, lemonade, if it has sugar, Cheh wants to tax it. This would lead to confusion as baristas attempt to calculate the tax of a large black coffee with two sugars. It would be the 1993 snack food tax fiasco all over again.
The dividing line between low-income and outright poverty is a string of coins. Low-income families shop for food by looking at price tags, not the USDA food pyramid. Regressive taxation not only stretches the food budget, but could wreak devastation on the whole family economy. It isn’t the president of Pepsi that will join the unemployment line, but the delivery driver, the convenience store clerk and the hot dog vendor.
Read my complete rebuttal on my blog at:
http://nomoredctaxes.blogspot.com/
Check out the No D.C. Beverage Tax to sign the petition at:
http://nodcbevtax.com/Sign_the_Petition.html