Taxing the Soda We Drink

I saw an interesting statistic the other day in the current issue of Time Magazine. The average American drinks 500% more soda today than Americans consumed 60 years ago. In fact Americans drink about a gallon of soda a week. The article also points out that soda seems to have a lot to do with the obesity epidemic in this country. Really? Could it have anything to do with the fact that a large Coke Classic at McDonalds is 32 ounces, as in a half gallon of soda? Are you wondering how many calories in that half gallon? 310.
Worried about the growing obesity epidemic, (more than 34% of Americans are obese) some states are trying to tax soda in an attempt to slow down consumption. Experts believe higher prices will result in people drinking less soda. Of course the soda industry is fighting lawmakers’ efforts with a good deal of success. Not that it matters. Whether it’s an addiction to the caffeine, sweets or just plain old brand loyalty, raising the price of soda isn’t going to change behavior very quickly. The state of Washington recently put a 2 ¢ tax on 12 ounces of soda. Let’s be serious for a moment. Does anyone really believe we can cut the consumption of soda by adding 2 ¢ to the price of a can of pop?
Consider how hard the task and how long it’s taken to change smoking behavior. My friend Bob and I were talking about when a pack of cigarettes cost $.26. Today the average cost of a pack of cigarettes in this country is $5.33. In states with high local and state taxes, the price approaches $10.00 a pack. Yet, about 19% of Americans still smoke, down from about 42% in 1965. In spite of higher prices, comprehensive anti-smoking campaigns, a ban on advertising and warning labels on cigarette packages that pretty much say “smoke this and you’ll die,” it’s taken more than 50 years to get the number of smokers below 20%. Soda might make you fat if you overindulge but if smokers don’t care or don’t believe that cigarette smoking leads to the permanent dirt nap, why would people worry about extra pounds?
Regardless, taxing people to change behavior works best when everyone affected has the same risks or enjoys the same benefits. Taxing cigarettes burdens people that smoke, the vast majority of whom risk serious health problems. It’s not possible to smoke responsibly. That’s not the case when it comes to soda. If I drink bottled water nine times out of ten why do I have to pay extra taxes if I occasionally treat myself to a root beer?
It’s tempting to blame the people that drink too much soda for this problem. It would be easy I suppose to accuse them of being irresponsible. But I think lawmakers are looking through the wrong side of a two-way mirror. I can’t help wondering why makers of soda and retailers offer such large portions of food and drink when it’s clear that too many people are overweight or obese.
When I was a kid the largest bottle of soda you could buy was Royal Crown’s 16 ounce cola. For most of the 1950s Coke came in 6 oz. bottles. A typical soda from a restaurant fountain was 8 ounces. Back then you would have to order four drinks to get the equivalent of today’s large Coke. People didn’t do that sort of thing then but I don’t think it was because they had more discipline. It never would have occurred to them because the size of the item they ordered implied it was an appropriate portion. So if consumers today can buy a 32 ounce drink it must be okay right?
I realize that the availability of larger portions alone doesn’t explain why people overindulge. Obviously, many people don’t overdo it. But I think it is true that restaurants and food service manufacturers back then understood they had responsibilities beyond growing market share and making a profit. While individuals must accept responsibility for their actions, marketers who concoct these so called value meals and relentlessly sell them to the public they supposedly serve, are behaving irresponsibly. Why not tax their profits on irresponsible offerings? If they raise prices to cover those losses hit them harder. Most food and beverage merchants are paying lip service to treating obesity. Maybe it’s time to put them on the kind of diet they understand.

Copyright 2010 Len Serafino. All rights reserved.