State's "Sin Taxes" Spark Familiar Debate
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In an effort to help close New York's budget gap, Governor Paterson wants to once again increase the tobacco sales tax and impose a new tax on sugary sodas -- a proposal that is no stranger to debate. NY1's Kafi Drexel filed the following report.When taxes pushed the average price of cigarettes to about $10 a pack in 2008, more than 4,000 New Yorkers called the city's quit hotline for help with kicking the habit. Health officials say while higher taxes may not have been the only reason for that version of a great smokeout, it certainly had an impact.
"A 10 percent increase in the price of cigarettes induces about a seven percent reduction in cigarette consumption. We've mapped that over decades, states, countries, different populations. It quite obviously works very effectively," said New York State Health Commissioner Dr. Richard Daines.
Now to generate more revenue for the state, Governor David Paterson wants an additional one dollar tax on cigarettes and a one cent per ounce tax on non-diet sodas. Commonly referred to as "sin taxes" elected officials say they're often a win-win, bringing in money and getting people to change unhealthy behaviors at the same time.
"Sugared beverages have turned out to be the single biggest cause of the obesity problem that we've got," Daines said. "We've got kids that are getting 10 to 15 percent of their total calories from sugared beverages."
Some experts, however, aren't so certain a tax on sugary sodas will play the same role higher cigarette taxes have had keeping smokers from lighting up.
"The cigarette taxes stopped a lot of young people from smoking. That's great. Will these taxes stop a lot of young people from drinking soft drinks? I wish that were true, but the tax really is too small to discourage anybody from drinking soft drinks," said New York University nutrition professor Marion Nestle. "I think if they are going to tax it, they should tax it really a lot and that would discourage use."
Other experts argue targeting just one product isn't the most effective way to fight obesity, and that there should be no tax at all.
"I have no problem with cigarette taxes. If you tax cigarettes the smoker has two choices: pay more or quit. If you tax sugary sodas or french fries or orange juice, there's thousands of other options to choose from. You can't force people not to consume more calories by taxing one particular tiny little segment of the food spectrum," said American Council on Science and Health Medical Director Dr. Gilbert Ross.
Leaving the decision to the consumer is something the beverage industry agrees with, but it may not hold water with government officials intent on proving their point.
"Beverage Digest, which is sort of their trade magazine will tell you when Coke or Pepsi raises their prices 12 percent or 14 percent they get a 12 or 14 percent decrease in consumption. If it didn't decrease consumption ask yourself why they would oppose it," Daines said.
As state legislators hash out a budget in the coming months, it will be up to that body to grabble with that question.