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New York Gov. Seeks Soda Tax

Posted Jan 20 2010 2:00pm
In his latest budget proposal, New York Gov. David Paterson has proposed a tax on sugared drinks that would amount to about a penny an ounce. According to The Wall Street Journal's Jacob Goldstein, "the basic argument is that taxing soda and other sugared drinks would be a way to fight obesity while raising money to fund health care (the money raised by the proposed tax in New York would go into an existing pool that funds some of the state’s health expenses)."

The proposed tax (explained on  p. 130 of this PDF) would be levied on drinks "that contain more than ten calories per eight ounces, such as soda, sports drinks, ‘energy’ drinks, colas, fruit or vegetable drinks containing less than 70% natural fruit or vegetable juice, and bottled coffee or tea. Milk, milk products, milk substitutes, dietary aids, and infant formula would be exempt."
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