Cook County soda tax: August 2, 2017-November 30, 2017 RIP
Soft drinks, especially those made with high-fructose corn syrup, are a great concern to the obesity battle. But this onerous soda tax was not a good weapon for this battle.
Too many other beverages were affected from diet drinks to lemonade. Too many beverages were wrongly taxed. Too many people drove to nearby counties or state lines to get their fix for those who could afford to make that drive.
Chicagoans were paying 3 different taxes on regular soft drinks: federal sales tax, a 3% tax in Chicago, and the 1¢/ounce tax since August 2. As of December 1, Chicagoans will still pay 2 taxes on regular soft drinks.
The Cook County Board's Finance Committee — made up of the entire board — voted 15-1 to repeal the tax on Tuesday. The full board voted 15-2 to repeal the tax on Wednesday. The tax will still be collected through the end of November.
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The Cook County reversal is on the heels of Boulder, CO and its 2¢/ounce tax that kicked in July 1. That tax does not include diet drinks. Details can be found here.
The Seattle City Council approved a 1.75¢/ounce soda tax (not on diet drinks). That tax kicks in January 1, 2018.
San Francisco, Oakland, and Albany (just north of Berkeley in Alameda County) passed soda taxes on November 8, 2016. The taxes have kicked in for Albany and Oakland; the San Francisco tax starts January 1. Each tax is 1¢/ounce.
Santa Fe, NM put a 2¢/ounce tax before the voters in May: 58 percent voted "no." Michigan is considering a bill passed by the Senate to pre-emptively prohibit cities from passing local taxes on food, drinks, and gum. No Michigan city is considering such a law.
For a great chart on soda taxes, click here.
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The TV viewers in the Chicago area were hit with a barrage of ads that were kinder than U.S. political ads but still as annoying. The pro-tax ads were paid for by former New York City mayor Michael Bloomberg. The anti-tax ads came from the American Beverage Association and related interests.
Bloomberg reportedly spent $5 million in ads just on the Cook County soda tax. Factor in a large number for the pro-tax ads. Then take all that combined money and work on those in Congress to get rid of the subsidies for corn products, especially high-fructose corn syrup.
There is a smugness with the soda taxes. They are in predominately liberal areas. As we saw with the Cook County soda tax, those who had cars and the stubbornness to buy the drinks in nearby areas can afford to take a stand. If you don't own a car in Chicago and barely can find a nearby grocery store, you can't afford to take a stand.
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The Michigan action speaks to a larger point. The areas that need help in the obesity battle won't be impacted by soda taxes. The only way they can get help is to have the price of soft drinks reflect their true cost. In a country where vegetables are relatively expensive, soda is cheap. At fast food places, a combo is only slightly more than the cost of a burger and fries. Of course, people are going to drink soda under those circumstances.
Cane-sugar versions are more expensive because sugar prices are artificially high and high-fructose corn syrup prices are artificially low. Until that dynamic changes, no amount of smug soda taxes will make an impact, especially on those who need the most help.
photos credit: me