Amid budget deficit, Illinois considers taxing sodas and sugary drinks | WFLD
"SPRINGFIELD, Ill. (AP) - Lawmakers scrambling to find money to fix Illinois' multibillion dollar deficit are looking to sugary drinks as one potential source of revenue.
Taxing distributors of sodas, energy drinks and other sugary beverages was among the revenue-generating ideas a group of lawmakers proposed to Gov. Bruce Rauner and other legislative leaders last week to try to finally end a nearly yearlong impasse that's left the state without a budget."
"The proposal in Illinois would impose a penny-per-ounce tax on distributors of bottled sugar-sweetened beverages, syrups or powders. Estimates vary on how much the tax would bring in, from $375 million to $600 million a year.
Health advocates concerned about obesity rates and related illnesses like diabetes welcome the tax, while businesses say it would lead to job losses and pricier drinks.
"This is a regressive proposal that will increase grocery costs for hundreds of everyday products and hit those who can least afford it, and it will also do nothing to improve public health outcomes," said Jim Soreng, executive director of the Illinois Beverage Association.
Arkansas, Tennessee, Virginia and West Virginia also tax sugary-drink distributors, according The Council of State Governments. In Philadelphia, Mayor Jim Kenny is proposing a 3-cents-per-ounce tax on sugary-drink distributors to help pay for preschool programs, park renovations, and other initiatives. Health advocates in Boulder, Colorado are also trying to ask voters in November to tax distributors.
With the tax in Illinois, the additional cost to distributors would be passed on to consumers and Soreng said the price of three 12-packs of soda would jump from about $11 to nearly $17."
"SPRINGFIELD, Ill. (AP) - Lawmakers scrambling to find money to fix Illinois' multibillion dollar deficit are looking to sugary drinks as one potential source of revenue.
Taxing distributors of sodas, energy drinks and other sugary beverages was among the revenue-generating ideas a group of lawmakers proposed to Gov. Bruce Rauner and other legislative leaders last week to try to finally end a nearly yearlong impasse that's left the state without a budget."
"The proposal in Illinois would impose a penny-per-ounce tax on distributors of bottled sugar-sweetened beverages, syrups or powders. Estimates vary on how much the tax would bring in, from $375 million to $600 million a year.
Health advocates concerned about obesity rates and related illnesses like diabetes welcome the tax, while businesses say it would lead to job losses and pricier drinks.
"This is a regressive proposal that will increase grocery costs for hundreds of everyday products and hit those who can least afford it, and it will also do nothing to improve public health outcomes," said Jim Soreng, executive director of the Illinois Beverage Association.
Arkansas, Tennessee, Virginia and West Virginia also tax sugary-drink distributors, according The Council of State Governments. In Philadelphia, Mayor Jim Kenny is proposing a 3-cents-per-ounce tax on sugary-drink distributors to help pay for preschool programs, park renovations, and other initiatives. Health advocates in Boulder, Colorado are also trying to ask voters in November to tax distributors.
With the tax in Illinois, the additional cost to distributors would be passed on to consumers and Soreng said the price of three 12-packs of soda would jump from about $11 to nearly $17."
