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In an effort to close the $13.3bn state budget gap, New York Governor David Paterson is calling for a 15% 'obesity tax' on non-diet soft drinks.
Mr Paterson has said he will not raise state income tax, but added: "You can't tax $50bn on New York's wealthiest residents. You're going to have to take it from other places and, hopefully, if there were to be an income tax, it would be at the end of the process, not the beginning."
A spokesman for the American Beverage Association (ABA) said: "It looks like a money grab. Paterson is trying to grab money anywhere he can find it. This is a time when the government, just like families, needs to tighten its belt."
According to The New York Times, the Democrat governor is also expected to impose higher taxes on luxury items, from furs to boats.
A number of US states have sales taxes on soft drinks, sweets and snacks, while most other foods are tax-exempt. But New York’s proposals would be the first to distinguish between 'diet' and 'non-diet' products. It would also double the existing 7.5% sales tax, already one of the highest in the US, potentially raising over $400m.
The proposal follows previous efforts by state legislators in New York and California to pass a 'fat tax' on high-calorie foods. It's expected to face opposition from The Coca-Cola Company and also PepsiCo, which has its corporate headquarters in New York State.
The sugar debate Sugared soft drinks have become a particular target for anti-obesity campaigners, with a 2005 study from the Center for Science in the Public Interest saying they are the single largest source of calories consumed by Americans.
A review of 88 nutritional studies published last year in the American Journal of Public Health also found “clear associations” between the consumption of non-diet soft drinks and increased calorie intake and body weight.
But a rival review of 12 studies published this year in the American Journal of Clinical Nutrition said there was “virtually no association” between drinking sugary sodas and weight gain in children and adolescents.
The American Beverage Association argues that lack of exercise, genetics and other factors need to be taken into consideration in considering the causes of rising obesity rates.
Susan Neely, ABA President, said the idea of taxing a single category in response to obesity concerns was “misguided” and “ridiculous”.
“We think there will be strong opposition to this kind of tax, given the economic conditions,” she said.
Coke and Pepsi have responded to concerns over obesity by committing to voluntary guidelines that eliminate advertising and marketing of the sugary drinks to children under 12.