Senate Drafts Solution to Increasing Obesity and Healthcare Cost – Taxing Sodas and Sugary Energy Drinks
May 20, 2009
What started as a state-level proposal from New York Governor David Patterson has become a national idea among U.S. lawmakers as a means to cover the rising costs of the nation’s healthcare.
The proposal seeks to implement a tax on beverages high in sugar, including soda and energy drinks – those deemed unhealthy and a possible cause for the rising obesity rates among Americans - 5-Hour Energy shots contain no sugar and would be free from this tax. We first looked at the proposal in our February blog post titled Sugary Beverages May Carry "Obesity Tax." At the time the Gov. Patterson unveiled arrangements to add an "obesity tax" of about 15 percent on the sale of unhealthy beverages as part of the state’s new budget plan.
That same idea has been outlined by the Senate Finance Committee during a closed-door meeting to reevaluate the aims to provide affordable healthcare to all Americans. Simply put, if implemented the taxes collected on the sale of these beverages would help finance affordable healthcare for all, including the 46 million without medical insurance.
According to an article from Reuters, President Obama would like to see a $635 billion "reserve fund" as foundation to expand medical coverage to the uninsured. Others believe that the final costs could be upwards of $2.5 trillion in order to control the rising medical costs. The committee is expected to have a draft of the legislation passed through the Senate by August.
The committee is considering the correlation between sugary beverages and increased obesity, which in turn increases healthcare costs. Beverages that would be exempt from the tax would include sugar-free drinks like 5-Hour Energy shots and artificially sweetened beverages, both of which would be categorized under healthier choices like milk, juice and water.
Sources:
http://www.medpagetoday.com/Washington-Watch/Washington-Watch/14280
http://health.yahoo.com/news/reuters/us_usa_healthcare_financing.html
http://cityroom.blogs.nytimes.com/2008/12/15/would-an-obesity-tax-curb-calorie-filled-drinks/?apage=1
http://www.nydailynews.com/ny_local/2008/12/14/2008-12-14_governor_paterson_proposes_obesity_tax_a-1.html
What started as a state-level proposal from New York Governor David Patterson has become a national idea among U.S. lawmakers as a means to cover the rising costs of the nation’s healthcare.
The proposal seeks to implement a tax on beverages high in sugar, including soda and energy drinks – those deemed unhealthy and a possible cause for the rising obesity rates among Americans - 5-Hour Energy shots contain no sugar and would be free from this tax. We first looked at the proposal in our February blog post titled Sugary Beverages May Carry "Obesity Tax." At the time the Gov. Patterson unveiled arrangements to add an "obesity tax" of about 15 percent on the sale of unhealthy beverages as part of the state’s new budget plan.
That same idea has been outlined by the Senate Finance Committee during a closed-door meeting to reevaluate the aims to provide affordable healthcare to all Americans. Simply put, if implemented the taxes collected on the sale of these beverages would help finance affordable healthcare for all, including the 46 million without medical insurance.
According to an article from Reuters, President Obama would like to see a $635 billion "reserve fund" as foundation to expand medical coverage to the uninsured. Others believe that the final costs could be upwards of $2.5 trillion in order to control the rising medical costs. The committee is expected to have a draft of the legislation passed through the Senate by August.
The committee is considering the correlation between sugary beverages and increased obesity, which in turn increases healthcare costs. Beverages that would be exempt from the tax would include sugar-free drinks like 5-Hour Energy shots and artificially sweetened beverages, both of which would be categorized under healthier choices like milk, juice and water.
Sources:
http://www.medpagetoday.com/Washington-Watch/Washington-Watch/14280
http://health.yahoo.com/news/reuters/us_usa_healthcare_financing.html
http://cityroom.blogs.nytimes.com/2008/12/15/would-an-obesity-tax-curb-calorie-filled-drinks/?apage=1
http://www.nydailynews.com/ny_local/2008/12/14/2008-12-14_governor_paterson_proposes_obesity_tax_a-1.html
Labels: energy drinks, energy shots
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