Washington city law makers have become really crazy for funds. They are planning of proposing taxes on sports drinks, teas and soda.
The idea is out of the world but the politicians are supporting it saying it will help get down the obesity rates and diseases like diabetes. But the retailers feel the tax would not work and people would continue to purchase colas and aerated drinks. However if the taxes are high then the retailers and the manufacturers will be worst hit. The beverage industry feels the taxes are baseless and will not work.
This is not the first time the government is planning something like this. Previous year the lawmakers came up with a proposal to use a penny per ounce drink tax which would mean $1.44 extra for a 12-pack soda. They planned to use the tax money to pay for the health care reform legislation but finally dropped the idea.
The proposal will be looked into deeply in Washington next week. The District of Columbia Council is considering extending the city's 6% sales tax to sodas and other sugary drinks of which they are currently exempted because of budget negotiations.
There are around 30 states that are applying taxes on sodas. New York and Rhode Island lawmakers are also thinking about implementing the tax. There are places like Anchorage and Kansas where the law failed to be implemented. 17 states and 3 cities in all have proposed drink tax legislation in 2009-2010.
If the tax comes into force it would reduce health problems on one hand and increase government’s revenue on the other. But the beverage industry is strong enough to oppose it. Whether Washington will adopt the tax rule will be clear only by next week when the voting happens on the budget next week.
