Michael F. Jacobson

Michael F. Jacobson

Posted: July 16, 2010 03:30 PM

Big Soda Deserves Taxes, Not Subsidies

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Forty-three million Americans depend on the Supplemental Nutritional Assistance Program, or SNAP, to help provide the foods they need for good health. SNAP (formerly known as Food Stamps) is a critically important part of the government's safety net and has become even more vital to low-income families since the economic downturn.

The program distributes benefits via an Electronic Benefits Card that can be swiped at participating supermarkets and, increasingly, farmer's markets. But the benefits cannot be used to purchase tobacco, alcoholic beverages, supplement pills, hot prepared foods, and non-food items. For those products, SNAP recipients must use their own money.

Unfortunately, huge amounts of SNAP dollars are used to purchase carbonated soft drinks and other sugar-sweetened beverages. Already among the least expensive foods in the supermarket, these drinks are nutritionally worthless and promote obesity, diabetes and other diseases that have a disproportionate impact on low-income Americans.

One supermarket executive shared with me confidentially that carbonated soft drinks accounted for 6.2 percent of the grocery bills of SNAP recipients. Considering that recipients will spend $65 billion of SNAP benefits on groceries in 2010, that works out to around $4 billion taxpayer dollars that go toward the purchase of soda pop. And that sum doesn't include non-carbonated soft drinks, which are just as nutritionally poor, such as Gatorade, fruit-flavored drinks with little or no juice, and so on.

Though excluding sugar-sweetened beverages from SNAP would be controversial, setting nutrition standards for government food programs is hardly new. The school lunch and breakfast programs administered by USDA comply with strict nutrition standards that exclude soda and junk food, as does the Women, Infants and Children (WIC) program, which is limited to foods that have specific health benefits for pregnant and breastfeeding women and young children.

The federal government should be doing everything it can to reduce soda consumption, not encouraging it. In fact, the government's 2010 Dietary Guidelines Advisory Committee bluntly stated, "avoid sugar-sweetened beverages." There would be stiff opposition to eliminating soda from SNAP from several quarters, and the soft drink industry would certainly pull out all the stops. That's what happened when the idea of a penny-per-ounce excise tax on soda was floated in Congress and in the New York State legislature. And Coca-Cola in particular has a long track record of using its "philanthropy" as a way of buying new friends and silencing critics.

A less controversial way to use the SNAP program to promote healthier diets would be to provide recipients with a financial incentive to purchase fruits, vegetables and whole grains. One easy way would be to provide a credit of say, 30 extra cents, for every dollar spent on healthy foods.

The SNAP program also funds a good chunk of the nutrition education that goes on in the United States, in the form of nearly $400 million in matching grants for state and local governments. But incredibly, during the Bush administration, the U.S. Department of Agriculture ruled that SNAP education funds could NOT be spent to mount community-wide campaigns to discourage the consumption of specific foods, such as soda, and the Obama administration has retained that policy. As a result, health officials in the city of California, Maine, Wyoming, and San Francisco have been effectively gagged when they've tried to run campaigns about the health effects of soft drink consumption. We've called on the administration to reverse this gag rule, and let SNAP-Ed funds be spent in this most-cost-effective way. (New York City has been running an ad campaign that should be emulated all over the country.)

I suspect that most people would agree that it makes sense not to allow federal nutrition assistance funds to purchase Budweiser and Marlboros, and reasonable people could disagree on where exactly to draw the line. But Coca-Cola, Pepsi, Mountain Dew, and other soft drinks make no positive contribution to the diet, promote expensive and debilitating diseases, and make our already stark health disparities worse. I would draw the line at soda. This is a product--and an industry--that needs to be taxed, not subsidized.

 
Forty-three million Americans depend on the Supplemental Nutritional Assistance Program, or SNAP, to help provide the foods they need for good health. SNAP (formerly known as Food Stamps) is a critic...
Forty-three million Americans depend on the Supplemental Nutritional Assistance Program, or SNAP, to help provide the foods they need for good health. SNAP (formerly known as Food Stamps) is a critic...
 
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wvoutlaw2k   07:15 PM on 7/28/2010
But what about the role that aspartame plays in leading to and possibly causing diabetes? To attack sugar as the cause of diabetes while ignoring other factors leads me to question your integrity. It seems like all your criticisms - and justful criticisms which I do agree with - are hyped up in a big WWE-style theatrical manner which does nothing but give companies such as Coca-Cola and McDonald's free publicity. McDonald's and Coca-Cola couldn't ask for a better PR agent. Is that why the American Diatetic Association - a steering committee member on your NANA nutritional advocacy coalition - is a front group for McDonald's AND Coca-Cola?
Js420   09:46 PM on 7/20/2010
Absolutely tax! because they sell a poison & they contaminate the enviroment. but most importantly, FOOD STAMP recipients need to be banned from using them to buy soda and candy. im okay with my tax $$ going to buy whole foods not junk
ThinkingPatriot   02:45 AM on 7/20/2010
We don't have to tax it, but end subsidies for corn and see what happens to the price
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farmilyman   10:05 AM on 7/20/2010
Excellent point! Since most corn is GMO and now sugar beets are GMO, the companies have their people in place in the gov't to write the rules.......so I wouldn't hold my breath.
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beerent   12:13 PM on 7/20/2010
Totally agree. I'm not willing to move it into the "sin" category. But we probably should not be subsidizing it.
degenerate1991   11:44 PM on 7/19/2010
As a libertarian, I once again find myself irritated by the progressive insistence that things either be good or evil, and thus deserving of subsidies or taxation. How about we do neither? HFCS wouldn't exist if not for the combination of corn subsidies and the embargo on Cuba. Soda isn't evil, but it isn't healthy, nor does it have any nutritional value aside from calories. I personally wouldn't call it food, just as I wouldn't consider non-alcoholic beer food, in spite of the fact that it contains calories. Thus, it makes sense to exclude it from a taxpayer-funded program designed to feed people.

That said, just because soda is, in truth, more of a luxury than food, doesn't necessarily mean that it needs to be taxed. That, and progressives really need to give up on taxes as an enforcer of their idea of moral virtue. It serves nothing more than to make them look self-righteous, and alienate the rest of us.
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beerent   01:05 PM on 7/20/2010
It's this good/evil paradigm that reminds me that the prohibition of alcohol was a manifestation of progressive politics and that what started as good intentions led to unexpected results. It also reminds me that there is very little difference between the progressive left and the religious right. They just grind different axes.
docwrite   10:09 PM on 7/19/2010
Studies suggest that beverage consumption is related to body weight and hence offers an attractive target for obesity reduction startegies. http://bit.ly/963iuX
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peskime   06:09 PM on 7/19/2010
Last time I checked corn syrup laden sodas were NOT a food group. Tax all junk food!
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deluxebrand   03:20 PM on 7/19/2010
It's no wonder Americans consume so much soda .... At the grocery store yesterday the cashiers were selling 2 liter Coca Cola bottles. FOUR or them for $2
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beerent   12:14 PM on 7/20/2010
Good point. How much does the same quantity of bottled water cost?
degenerate1991   09:21 PM on 7/20/2010
I know that at Kroger we sell a 24 pack of 16.9 (1/2 liter) ounce bottles for $2.99. So, that's 12 liters of water for $3, which is to say they're the exact same price. I'd wager the larger bottles (like, say a gallon) are cheaper, due to less packaging.
jcdwyer   09:45 AM on 7/19/2010
Dr. Jacobson points to WIC, school meals, and the prohibition against using SNAP to pay for tobacco and alcohol as precedents for this wholesale change in the way low-income Americans would be allowed to eat.

However, programs like WIC and school meals are targeted at children, for whom there is both an established consensus on what constitutes good nutrition and a parental duty to enforce these standards on little people who can't be trusted with their own choices. Neither assumption holds for SNAP.

The SNAP prohibition against tobacco is because it is not a food, and alcohol because it contributes to the much more damaging disease of alcoholism.

Prohibiting the purchase of "sugary" beverages would be *A DE FACTO CUT* in SNAP benefit levels for hungry American families unless offset by a healthy foods subsidy as Dr. Jacobson describes. This is because, as Dr. Jacobson rightly points out, these beverages are extremely cheap, which is likely why they are favored by families with few pennies to spare.

We can talk about the health benefits of limiting soda consumption, but let's be honest about the fact that this policy change would amount to a paternalistic and regressive new tax on low-income families.
degenerate1991   11:30 PM on 7/19/2010
As someone who works in a grocery store, I have to disagree. SNAP customers aren't living on soda, and aren't going to starve without it. The only thing soda provides is calories, and, given that obesity is more of an issue among our poor than starvation, I don't think those soda calories will be missed. More to the point, SNAP customers tend to buy expensive prepackaged food (mostly junk), because they're getting it for free.

I'm sorry, but sprite and skittles aren't "food" any more than beer is. Quite frankly, they're luxuries. Nobody is going to go hungry because the government didn't give them free soda.
sachazg   01:06 AM on 7/19/2010
Tax soda! Plus, anyone who is upset should learn to give their kids water
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rougebaisers   06:32 AM on 7/18/2010
Who in their right mind actually puts this stuff in their system NOW that it is loaded with high fructose corn syrup? The mindless fattening of America.
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deluxebrand   03:21 PM on 7/19/2010
it's funny. I haven't had a soda in a long time, but the other day I had a Coca Cola at a restaurant.. I couldn't believe how sickly sweet it was, disgusting.
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Salty 2   11:16 PM on 7/17/2010
And theb Gov once again wants to intrude on our private lives and choises. And some say we are not loseing our liberties.
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deluxebrand   03:24 PM on 7/19/2010
Your poor choices cause healthcare costs to balloon to hundreds of billions each year.
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peskime   06:10 PM on 7/19/2010
No just our ability to spell and fit into airline seats
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MiHi   08:14 PM on 7/17/2010
You say you want a food revolution. Well you know, I think we want to eat better.
You say you want dining evolution. Well you know, many options are around.

But when you want to tax up my soda.

That is when you all have gone too far.
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TaxpayingVoter   07:18 PM on 7/19/2010
As a diet cola addicted member of a supposedly free country, I salute you....lol
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Joey NY   08:03 PM on 7/17/2010
NY has been trying to pass legislation to tax soda and other sugary drinks, which I agree with 100%. Not only is soda unhealthy it is a luxury. When I say luxury, I mean something that is not necessary for your diet or life. As a country we should be promoting healthier options and should subsidize produce instead of meat and junk food.
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Janine547   11:09 PM on 7/17/2010
People make those choices of their health, it's not the responsibility of the government to decide what is and what isn't healthy for me.
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Joey NY   10:30 AM on 7/18/2010
You still have the choice to drink the soda, no one has taken that option away from you !! But every doctor and nutritionist will tell you that high fructose corn syrup is something people should not consume (unless they work for the corn lobby). It could make an otherwise healthy person become insulin resistant among several other damaging things to ones body. Then when you are diabetic and do not have health care who are you going to turn for, for help? A private insurance company who will deny you because of a pre-existing condition of your making? Think real hard how that cycle works. Go ahead and smoke and drink, but your health care cost will come out of someone else's pocket other than yours at some point, even with private health care!!
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deluxebrand   03:26 PM on 7/19/2010
I disagree. When the poor choices of some people cause our healthcare system to be overburdened to the tune of hundreds of billions $$ a year, then it IS the responsibility of our ELECTED government to do something about it. Obesity is the leading cause of preventable deaths in the US and is the most expensive part of our healthcare costs... and it is escalating at a dramatic rate.
RizePosta   06:08 PM on 7/17/2010
Soda may be nutritionally worthless and have as many calories as orange juice, but why is the focus here on soda, when there are larger more impactful issues occurring?How many people do you know that wear cotton? I think so. And cancer levels are at all time highs right? So why aren't we discussing the need to tax and diminish the production of cotton?
http://health-actuary.blogspot.com
flashblitzen   12:28 PM on 7/17/2010
Please don't say anything bad about my sugary master.
I don't want to go back to alcohol and I really need this to wake up in the morning.
Raise the price and I will pay - oh lords of sweet carbonation.
BTW - please bring back the original coke with the "cane" in it.
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Janine547   11:05 PM on 7/17/2010
Agreed ! I've been able to find the Coke made with cane at a local retailer, in glass bottles. I

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