Senators Consider “Junk Drink”
Tax to Help Finance Health Reform
Yesterday,
the Chairman and Ranking Republican of the Senate
Finance Committee released their third and final
“policy options” paper for health care
reform. The paper, “Financing Comprehensive
Health Care Reform: Proposed Health System Savings
and Revenue Options,” includes a section on
“Lifestyle Related Revenue Raisers.” In this
section Baucus and Grassley propose a tax on “junk
drinks” that are sweetened with sugar,
high-fructose corn syrup, or similar
sweeteners. The tax would not apply to
beverages sweetened with non-caloric
sweeteners. Sugar-sweetened fountain-drink
syrup would be taxed at a higher rate per ounce,
such that the rate per ounce of fountain drink
would be roughly equivalent to the tax on
ready-to-drink soft drinks.
Because
the anticipated cost of health care reform is so
high, and the financing options are limited, the
Committee may use this option in the legislation
they are currently developing.
**************************************************************
Lend your voice
Get updates and alerts about key
events/developments
Get more information
Click here
to take action.
