Tax & Accounting Blog

Soda Tax Wars

Indirect Tax, ONESOURCE, Sales and Use Tax September 21, 2012

Richmond and Monterey, California, are the latest battlegrounds in the $111 billion soda industry’s fight to defend their near-perfect record of defeating proposed taxes on sugary drinks. In November, voters in these cash-strapped cities will decide whether to pass penny-per-ounce taxes on sugar-sweetened drinks to bolster municipal coffers and “fight obesity.” Approval of this type of tax on a local level could open the floodgates to similar taxes around the country. A few decades ago, cigarette taxes were originally passed in several small California cities.  This paved the way for high taxes being added to tobacco products accross the country. The soda industry does not want to suffer a similar fate.

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