Senate Republican sours on budget proposal to tax sugary soft drinks 

Albany Times Union
By CATHLEEN F. CROWLEY, Staff writer
February 10, 2010

ALBANY — The soda tax generated the most heated debate Tuesday at a hearing on the proposed health budget.

The health budget cuts state funding to hospitals, nursing homes and medical education, but the soda issue bubbled to the top.

Dr. Richard F. Daines, state health commissioner, argued for the proposed excise tax on sugar-sweetened beverages but found little support among the legislators who attended the hearing. Daines said the average American consumes 46 gallons of sweetened drinks adding 40 pounds of sugar to their diets annually. The tax would reduce obesity and raise $464 million in state revenue in the first year and $1 billion in the second year, Daines said.

Daines testified for two hours Tuesday and faced skepticism about the soda tax. Sen. John DeFrancisco, R-Syracuse, challenged the commissioner point by point.

“Lots of people who drink sugar-sweetened beverages are not obese,” said DeFrancisco, who vowed to fight the tax at a rally last week at a Coca-Cola bottling plant outside of Syracuse.

Daines countered the tax, which adds a penny per an ounce, would hit the heavy users the hardest and change their behavior. When soda prices rise 10 percent, sales drop 8 percent or 9 percent, said Daines, citing beverage industry statistics.

Why not tax supersized burgers? DeFrancisco asked.

Daines said sugared drinks are the single strongest factor associated with the rise of obesity. “A soda is water and sugar. Empty calories,” he said. “It’s a very pure target.”

Daines added subsidies to the corn industry, which produces the sweetener in soda, have resulted in artificially low prices. “The market is failing on soda,” he said.

“Where did you get your doctorate on economics?” DeFrancisco asked.

“I studied it like anyone else,” Daines said.

Why not tax people who don’t exercise? DeFrancisco asked.

Lack of exercise is about 20 percent of the cause of obesity while 80 percent is excess calories, Daines said. “It’s a minor contribution,” he said.

Then get right to the core of problem, DeFrancisco said: tax morbidly obese people.

That would unfairly burden minority children and families who are disproportionately more obese, Daines said.

“Don’t play the minority card with me because it’s not going to work,” the senator said. “The fact of the matter is it offends me to use taxes as a means to try to control behavior.”

Cathleen F. Crowley can be reached at 454-5348 or ccrowley@timesunion.com.

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