A new Illinois Tax may lead to diabetes and tooth decay.
Nothing motivates government more than money and power. If there is a scheme that can increase revenue and exert control over human behavior, it will fly into the law books quicker than a yellow jacket to a concession stand. If that law can be sold to the public as being good for humanity it may endanger people on its way over.
Which is why, in today’s landscape of cash strapped municipalities, soda taxes have become as popular as fidget spinners. Seven cities already have a soda tax in place. Kudos to the shrewd entrepreneurs who opened their convenience stores just outside city limits, where most customers now shop for soda.
Next in line is Cook County, Illinois; who passed a penny an ounce tax, that will go into effect July 1st. (A more cynical person may suggest that Cook County, the birthplace of corruption, is just trying to extract bribes from Big Soda.)
But they’ve run into a bit of a snag. Other cities were able to pass the tax onto distributors, hiding their chicanery behind a veil of inflation. But Illinois decided that would be wrong, since sales tax would be charged on the beverage tax. In an unprecedented display of government generosity, the State decided that would be overtaxing citizens cruelly. So the beverage tax must be added after the sales tax is assessed.
Other purchases are often separated like that. When you buy Cigarettes and Liquor, you’ll see the excise and state taxes apart from the sales tax you were charged for the milk.
Here’s where it gets interesting: outside a few crooked grocery stores on the bad side of town, you can’t pay for Liquor and Cigarettes with Food Stamps. So the Federal law prohibiting taxation of purchases made with SNAP cards does not apply. But you can buy soda. So people on Food Stamps won’t have to pay the new tax. According to the Chicago Tribune:
Cook County’s sweetened beverage tax will not apply to purchases made with food stamp benefits, county officials said this week, marking the second reversal on the matter since the tax was approved in November. (full story)
Despite the apologists, who claim the program only exists to fight hunger, people on food stamps spend a lot of money on soda. According to a New York Times article, more than 9% of SNAP purchase are for soda. That’s close to 25% more than people spend when their groceries are self-paid. This amounts to 6.7 billion dollars going straight to Big Soda, more than 10% of their annual sales. It’s a big chunk of corporate welfare for the industry that brought you diabetes and tooth decay.
Perhaps it’s part of the reason why the risk of diabetes for people living in poverty is almost double the national rate, and they have twice the number of cavities.
Now while I’m not the type to tell anybody what they should and should not drink, it does seem that a program focused on nutrition, should discourage spending on nutritionally derelict food items. Contrarily, by making it cheaper for people on nutritional assistance, Cook County will be encouraging it.
If we eliminated soda purchases, the Federal Government could cut the SNAP program by almost 10% and promote better health. Rather than being accused of starving children, Republicans can say they’re just trying to help them to keep their teeth. And help their grandparents keep their feet.
With Republicans firmly in control of the federal government, there is no chance SNAP rules will change. The legislators would lose far too much in campaign donations to even consider it. http://thehill.com/policy/healthcare/300512-soda-companies-health-lobbying-habits-raise-questions
Gag