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In the Governor's 2010-2011 Executive Budget, there is a $1.28 per gallon excise tax on distributors of nonalcoholic beverages. The beverages that would be affected are soda, iced tea, fruit drinks, sports drinks, and any other non-dairy beverage except diet or very low or no calorie drinks. The proposal is a super-sized version of Paterson’s “fat tax” proposed in December 2008. It has a $1 billion pricetag in overall costs, and represents an average cost increase of 23% for the broad range of products the governor wants to tax.
This tax will also hurt jobs in a state already hit hard by the economy. Job losses at the wholesale, retail and transportation levels from this proposal could reach as high as 20,000 jobs statewide.
In expert testimony this year:
· The American Council on Science and Health testified the tax will have no appreciable impact on health.
· The American Beverage Association summarized the idea as follow: “What we are left with is a large new tax that will cost jobs, disproportionately hurt small businesses, and take money out of consumers’ pockets for everyday grocery items.”
· Teamsters Local 812 testified that cuts in the soft drink industry could impact a substantial number of jobs.
While I believe that our state's obesity problem must be addressed, this is not the solution. Join me in voicing your opinion that the Soda Tax is wrong for New York State.
Thank you for helping to keep Albany accountable.
