Soft Drink Manufacturers' Hit Back Against 'Soda Tax'

Spokesman says: “This paper is nothing more than another attempt by researchers and their supporters who have long advocated discriminatory taxes on beverages to promote a beverage tax, which will have no impact on public health."

Jan 11 2012 --- In response to "A Penny-Per-Ounce Tax on Sugar-Sweetened Beverages Would Cut Health and Cost Burdens of Diabetes," a paper published in the January issue of the journal Health Affairs, the American Beverage Association issued the following statement:

"Taxing sugar-sweetened beverages will not reduce obesity, nor will it have a truly meaningful impact on obesity-related health conditions such as diabetes or coronary disease. In fact, using assumptions based on ‘lacking or inconclusive' evidence, the authors estimate their proposed tax would result in an average weight loss of less than one pound per year - an insignificant amount for an obese person. Importantly, a wide range of factors contribute to these health conditions and singling out one set of products in such an overly simplistic manner only undermines efforts to combat them.

“This paper is nothing more than another attempt by researchers and their supporters who have long advocated discriminatory taxes on beverages to promote a beverage tax, which will have no impact on public health. Consumers do not support these taxes and recognize them for what they truly are - a money grab to raise revenue, as noted by the authors themselves."

In a study conducted at Columbia University Medical Center and the University of California, San Francisco, researchers estimated that if a higher, penny-per-ounce tax were imposed on sugar-sweetened beverages, it would result in an approximately 15% reduction in consumption and reduce the prevalence of obesity, diabetes, and cardiovascular disease.

The researchers estimated that, over a ten year period (2010-2020), the penny-per-ounce tax could reduce new cases of diabetes by 2.6%, as many as 95,000 coronary heart events, 8,000 strokes, and 26,000 premature deaths. These health benefits represent more than $17 billion over a decade in medical costs avoided for adults aged 25+, in addition to generating approximately $13 billion in annual tax revenue.