Latest news with #EmilyShetty
Yahoo
07-03-2025
- Health
- Yahoo
Democrats and Republicans take on soda, but they're using different tactics
Mar. 7—Maryland lawmakers may impose the nation's first dedicated statewide tax on soda and other sugary beverages — joining cities including Philadelphia, Seattle and Boulder, Colorado, that have created similar taxes. Advocates say the proposed Maryland legislation would raise much-needed state revenue and incentivize people to avoid sugary beverages that are linked to health problems such as diabetes, obesity and heart disease. "We can promote healthier choices, and we can generate revenue to support essential programs that benefit all Maryland residents, especially those in underserved communities," the bill's co-sponsor, Democratic state Del. Emily Shetty, said during a hearing Thursday. But the proposal drew strong pushback from the soda industry and retailers. Nebraska lawmakers also are considering raising taxes on soft drinks. The proposals come at a time when GOP lawmakers nationwide are lining up to advance the "Make America Healthy Again" agenda promoted by Robert F. Kennedy Jr., the new U.S. health secretary. As part of that broader movement, red states have aimed to remove fluoride from public water sources, roll back vaccination requirements and regulate candy and soda purchases in social welfare programs. GOP lawmakers in several states have introduced bills asking the federal government to allow them to remove candy and soda from the list of eligible products that can be purchased with food stamps, officially known as the Supplemental Nutrition Assistance Program. Like many other states, Maryland is facing a gaping budget hole: Lawmakers are grappling with a $3 billion projected budget deficit. Leaders fear that gap could further widen with declining federal aid. The Maryland bill proposes a 2-cent-per-ounce tax on distributors of sugary beverages, syrups and powders. It would include sports drinks, diet sodas and other beverages with added sugars or sweeteners. The bill would exempt natural fruit juice, natural vegetable juice, milk, infant formula and water that is not flavored with sugar or sweeteners such as aspartame. The Maryland bill is projected to raise nearly half a billion dollars per year. It would earmark $189 million for free breakfast and lunch programs, $50 million for child care subsidies and the remaining revenue to Maryland's general fund. Shetty acknowledged the bill could be viewed as regressive because groceries represent a larger share of budgets for families with lower incomes. "That's a fact. But what is also a fact is if you don't purchase these products, you won't pay this tax," she said during the hearing. "Consumers will make healthier choices when treats cost more than their budget allows." Health experts testified for the measure. But the bill faces staunch opposition from Maryland's soda industry, along with retailers such as grocers and convenience stores. During Thursday's hearing, some Republican lawmakers expressed concerns about increasing costs on consumers and warned that the bill could push residents to buy groceries in neighboring Delaware, Pennsylvania and Virginia. Opponents characterized the bill as an anti-business move that would push employers to cut staff or leave the state. If you don't purchase these products, you won't pay this tax. Consumers will make healthier choices when treats cost more than their budget allows. — Maryland state Del. Emily Shetty, a Democrat The bill would tax distributors, leaving it up to those companies to decide how much of the cost to pass on to customers. But Marshall Klein, who operates a chain of grocery stores in and around Baltimore, said the measure would pinch retailers and consumers alike. He said a $2.99 gallon of iced tea could leap to $5.50 a gallon, if distributors passed along the entire cost to consumers. Some supporters argued the bill would specifically help Black and brown communities and low-income households, whom they say beverage companies target with their marketing of sugary drinks. But Klein, who said he runs two stores in urban food desserts, said raising the costs of products like soda will cut into family grocery budgets, making it harder to pay for healthy foods. "This is a tax on people that don't have any other options," he said. "This is a group of progressive legislators trying to get a revenue option and tell people what they should and what they shouldn't drink and how they should and how they shouldn't live." The Maryland bill has not been scheduled for a committee vote yet. Lawmakers in Nebraska are also targeting sugary beverages as a potential revenue source. Facing a budget hole of at least $100 million over two years, Republican Gov. Jim Pillen proposed new taxes on soft drinks, candy, certain nicotine products and cryptocurrency mining facilities. State Sen. Tom Brandt, a Republican, told Stateline the budget hole has made lawmakers "much more receptive than other years" to his idea to impose sales tax on products such as soda. He proposed legislation to remove sales tax exemptions for candy and soft drinks, part of his wider effort to revisit the state's dozens of sales tax exemptions. Brandt, who expects the bill to raise $50 million per year, said he's approaching it from a revenue standpoint, but acknowledged the health issues. He said colleagues representing urban parts of Nebraska raised concerns about the bill because many residents rely on places such as convenience stores for food purchases. "And my counterargument to that is they're paying $3 for a bottle of pop," he said. "They can pay 15 cents for tax." YOU MAKE OUR WORK POSSIBLE.
Yahoo
07-03-2025
- Health
- Yahoo
Democrats and Republicans take on soda, but they're using different tactics
Soda is displayed in a grocery store. Lawmakers in Maryland are considering a new tax on sugary drinks like soda. (Bryan P. Sears/Maryland Matters) Maryland lawmakers may impose the nation's first dedicated statewide tax on soda and other sugary beverages — joining cities including Philadelphia, Seattle and Boulder, Colorado, that have created similar taxes. Advocates say the proposed Maryland legislation would raise much-needed state revenue and incentivize people to avoid sugary beverages that are linked to health problems such as diabetes, obesity and heart disease. 'We can promote healthier choices, and we can generate revenue to support essential programs that benefit all Maryland residents, especially those in underserved communities,' the bill's co-sponsor, Democratic state Del. Emily Shetty, said during a hearing Thursday. But the proposal drew strong pushback from the soda industry and retailers. Nebraska lawmakers also are considering raising taxes on soft drinks. The proposals come at a time when GOP lawmakers nationwide are lining up to advance the 'Make America Healthy Again' agenda promoted by Robert F. Kennedy Jr., the new U.S. health secretary. As part of that broader movement, red states have aimed to remove fluoride from public water sources, roll back vaccination requirements and regulate candy and soda purchases in social welfare programs. GOP lawmakers in several states have introduced bills asking the federal government to allow them to remove candy and soda from the list of eligible products that can be purchased with food stamps, officially known as the Supplemental Nutrition Assistance Program. State lawmakers embrace RFK Jr.'s health policies Like many other states, Maryland is facing a gaping budget hole: Lawmakers are grappling with a $3 billion projected budget deficit. Leaders fear that gap could further widen with declining federal aid. The Maryland bill proposes a 2-cent-per-ounce tax on distributors of sugary beverages, syrups and powders. It would include sports drinks, diet sodas and other beverages with added sugars or sweeteners. The bill would exempt natural fruit juice, natural vegetable juice, milk, infant formula and water that is not flavored with sugar or sweeteners such as aspartame. The Maryland bill is projected to raise nearly half a billion dollars per year. It would earmark $189 million for free breakfast and lunch programs, $50 million for child care subsidies and the remaining revenue to Maryland's general fund. Shetty acknowledged the bill could be viewed as regressive because groceries represent a larger share of budgets for families with lower incomes. 'That's a fact. But what is also a fact is if you don't purchase these products, you won't pay this tax,' she said during the hearing. 'Consumers will make healthier choices when treats cost more than their budget allows.' Health experts testified for the measure. But the bill faces staunch opposition from Maryland's soda industry, along with retailers such as grocers and convenience stores. During Thursday's hearing, some Republican lawmakers expressed concerns about increasing costs on consumers and warned that the bill could push residents to buy groceries in neighboring Delaware, Pennsylvania and Virginia. Opponents characterized the bill as an anti-business move that would push employers to cut staff or leave the state. If you don't purchase these products, you won't pay this tax. Consumers will make healthier choices when treats cost more than their budget allows. – Maryland state Del. Emily Shetty, a Democrat The bill would tax distributors, leaving it up to those companies to decide how much of the cost to pass on to customers. But Marshall Klein, who operates a chain of grocery stores in and around Baltimore, said the measure would pinch retailers and consumers alike. He said a $2.99 gallon of iced tea could leap to $5.50 a gallon, if distributors passed along the entire cost to consumers. Some supporters argued the bill would specifically help Black and brown communities and low-income households, whom they say beverage companies target with their marketing of sugary drinks. But Klein, who said he runs two stores in urban food desserts, said raising the costs of products like soda will cut into family grocery budgets, making it harder to pay for healthy foods. 'This is a tax on people that don't have any other options,' he said. 'This is a group of progressive legislators trying to get a revenue option and tell people what they should and what they shouldn't drink and how they should and how they shouldn't live.' The Maryland bill has not been scheduled for a committee vote yet. Cutting services or raising taxes: State lawmakers weigh how to fill big budget gaps Lawmakers in Nebraska are also targeting sugary beverages as a potential revenue source. Facing a budget hole of at least $100 million over two years, Republican Gov. Jim Pillen proposed new taxes on soft drinks, candy, certain nicotine products and cryptocurrency mining facilities. State Sen. Tom Brandt, a Republican, told Stateline the budget hole has made lawmakers 'much more receptive than other years' to his idea to impose sales tax on products such as soda. He proposed legislation to remove sales tax exemptions for candy and soft drinks, part of his wider effort to revisit the state's dozens of sales tax exemptions. Brandt, who expects the bill to raise $50 million per year, said he's approaching it from a revenue standpoint, but acknowledged the health issues. He said colleagues representing urban parts of Nebraska raised concerns about the bill because many residents rely on places such as convenience stores for food purchases. 'And my counterargument to that is they're paying $3 for a bottle of pop,' he said. 'They can pay 15 cents for tax.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
07-03-2025
- Business
- Yahoo
Some Maryland lawmakers want to tax sugary beverages. Businesses aren't so sweet on it
BALTIMORE — In an effort to address Maryland's growing budget deficit, two Democratic lawmakers are considering a tax on sugary beverage distributors — a proposal that has sparked controversy among Republicans and retailers. House Bill 1469, sponsored by Montgomery County Delegate Emily Shetty and Delegate Joseline Peña-Melnyk, who represents Prince George's and Anne Arundel counties, would add a 2-cent-per-ounce excise tax on the distributors of sugary beverages, powders or syrups. Revenue from the proposed sugary beverage distributor tax is projected to generate $500 million in fiscal 2027, nearly half of which would be distributed to funds for healthy school meals and child care scholarships. Most of the remaining portion would go to the state's general fund, though a new amendment could provide a health equity fund with about $15 million. 'This bill is a public health bill,' Shetty said at a House Ways and Means Committee hearing on Thursday. 'It will decrease consumption of sweetened beverages while investing in universal school meals for children, boosting our child care scholarship program and making a sizable dent in our structural budget deficit.' Under the bill, a sugary beverage is defined as a drink that contains added sugars or artificial sweeteners. It does not include natural fruit or vegetable juices, milk, infant formula, beverages for medical use or alcoholic beverages. At the bill's hearing, House Republicans raised numerous questions about the proposed tax. However, they have also balked at additional tax proposals as a whole. In a statement Thursday, House Republicans called the bill a 'Slush Tax.' 'The Democratic leadership feels morally justified to move forward with sweeping tax increases, and unfortunately, Maryland's families and small businesses will not know what hit them,' said House Minority Whip Jesse Pippy, who represents Carroll and Frederick counties. Distributors or retailers would not have to pass the entire 2-cents-per-ounce tax on to consumers, Shetty said. 'But if they do pass it on, it will give that opportunity for that point of reflection in the consumer aisle, or by the consumer, rather, that will say, is this a treat or is this something that I need for daily consumption?' she said. Proponents pointed to the health benefits of reducing sugar consumption, which could include lower rates of childhood obesity and heart disease, among other things. Ricarra Jones, political action chair for the Maryland State Conference of the NAACP, said the legislation also could have a positive impact on communities of color, which have long been targeted by sugary drink advertising and plagued with resulting health issues. 'I believe that this is intentional,' she said of the targeted promotions. 'There is a deliberate lack of healthy options in our corner stores and our grocery stores. Our kids and our families deserve to walk in a store just like any other family in this state and be able to choose water and other healthy drinks.' Maryland would be the first state to levy such a tax, though some cities, including Washington, D.C., Philadelphia and Seattle, already have taxes on sweetened beverages. Marisa Waxman served as Philadelphia's first deputy revenue commissioner when the city implemented its sweetened beverage tax in 2017. From the outset, she said, concerns were raised about the tax being difficult to implement, causing job losses or failing to generate adequate revenue. Those concerns did not materialize though. 'From a fiscal standpoint, all taxes have some impact on underlying activity, and new taxes can be difficult to predict. Even with these challenges, the Philadelphia beverage tax has been a reliable source of revenue,' she said. The city's tax generated about $78 million in its first full year and has remained 'relatively stable' since then, Waxman added, saying it's one of Philadelphia's 'most accurately predicted revenue streams.' Opponents, however, argued that the proposed tax was anti-business and could prompt some Marylanders to drive to different jurisdictions to purchase sugary beverages instead. Sarah Price, vice president of communications and government affairs for the Maryland Retailers Alliance, said the sugary beverage distributor tax, as well as other bills up for deliberation by the legislature, don't present Maryland as an 'economically viable option for expansion.' 'This bill would not only incentivize customers to leave the state to shop but also disincentivizes businesses from investing here when they know that they can make more and save more money by locating directly across the border in our neighboring states,' she said. Marshall Klein, president of Klein ShopRite of Maryland, which owns and operates nine grocery stores in Baltimore City, Baltimore County and Harford County, said Shetty's legislation was not a soda bill — it's a tax on people who don't have other options. 'This is a group of progressive legislators trying to get a revenue option and tell people what they should and what they shouldn't drink and how they should and how they shouldn't live,' he said. 'And what that's going to do is take money out of the mouths of these families and impact their ability to continue to shop and provide for their families by purchasing other healthy foods.' ---------
CBS News
06-03-2025
- Health
- CBS News
Maryland lawmakers debate imposing taxes on certain sugary drinks
Will Marylanders have to pay more for their favorite drinks like soda? The House of Delegates Ways and Means Committee heard more than two hours of testimony from those for and against the new measure that would impose taxes on certain sugary drinks. For Our Kids Act, or House Bill 1469, would tax distributors for selling sugary drinks, syrups and powders to retailers starting in July 2026. Beverages would be taxed at 2 cents per ounce, and syrups and powders would be taxed at 2 cents per ounce of the beverage that can be produced, according to the instructions. The rate of the Sugary Beverage Distributor tax would increase in 2027, and each following year based on the consumer price index. If there is a decline or no growth in the index, the tax rate would stay the same for that year. Drinks sold to the government, sold for resale outside of the U.S., or sold to other distributors rather than retailers would be exempt from the tax. Revenue for the state Some of the revenue generated would support programs for students across the state. The For Our Kids Act defines sugary drinks as non-alcoholic, carbonated, or non-carbonated beverages that contain added sugars or non-nutritive sweeteners, such as soda, some juices, and sports drinks. Natural fruit or vegetable juices, milk, infant formula and beverages for medical use would not be taxed under the bill. "Excessive consumption of sweetened beverages, this is a really significant public health concern," said Del. Emily Shetty, the bill's sponsor. Shetty explains that this bill is not only about public health but also about generating much-needed revenue for state programs. "By imposing a tax on distributors, we can reduce the intake of these harmful drinks," Shetty said. "We can promote healthier choices and we can generate revenue." Marylanders at an Annapolis gas station questioned if the money really would benefit the state's students. While they support the funds going to students, they aren't sure if the tax is needed, especially during an already challenging time. "I really don't think they need to do that just think it's another way of taxing people, people are going to buy surgery, no matter what," said Annapolis resident Ken Walter. Other states with similar taxes Other municipalities, such as Philadelphia and Seattle, have a similar measure in place. Philadelphia's tax is 1.5 cents per ounce, and for syrups and powders 1.5 cents per ounce of the final beverage product made. Those for the bill argued that this is a steady revenue stream for these cities and that Maryland would be the first state to impose this, leading the way for others. Against the sugary drink tax Delegates on both sides of the aisle question Shetty and those testifying for the bill, asking them if this bill is truly effective and its projected impact on Marylanders. Del. Jheanelle Wilkins, a Democrat from Montgomery County and Vice Chair of the committee was concerned that low-income communities would be hurt most by this bill. "Very same community that we are working to help via the school lunch is, is also the same community that would probably bear the brunt of the cost and the tax," Wilkens said. Del. Jason Buckel, a Republican from Allegany County, said while the bill targets the distributors to pay the tax, it would likely be passed on to Marylanders, who could simply take their business to neighboring states. "I guarantee you your profit margin on the $3.49 bottle of soda is probably it's in the maybe the dimes," Buckel said. "That's just economics, they're going to have to pass the costs along." "They need to find somewhere else to put that, but not on something that everybody likes. They do enough taxing," Edgewater resident William Brown said. Impact on snowball stands Others were concerned that snowball stands, a Maryland summer tradition, would be forced to close. Del. Mike Griffith, a Republican who represents Cecil and Harford counties, said the syrup tax may eliminate this summer tradition. "Well, snowball is syrup mixed with ice. So would this apply to our kids' Snowball stands?" Griffith questioned. The syrup's distributor would be taxed. Distributors and small businesses People fighting against the bill also argue it will be bad for small businesses across the state, including grocery stores. "This bill will take $500 million out of the grocery budgets of Marylanders. It will make it harder for grocery stores to continue to operate," said Marshall Klein, president of Klein's Family Markets. It would also hurt the distributors, which includes a family-owned Pepsi bottling plant in Havre de Grace. "If you pass this bill, we're looking at a 35% reduction in sales. That's going to translate to a 25% reduction of my workforce," Grant Connolly, owner of Pepsi-Cola Bottling Company of Havre de Grace. Support programs for students In the hearing on Thursday, Shetty explained the measure would generate $500 million per year. At the end of each fiscal year, $189 million in revenue from the Sugary Beverage Distributor Tax would be allocated to the Healthy School Meals for All Fund and $50 million would go to the Child Care Scholarship Program. The remaining revenue would go to the state's general fund. The revenue sent to the Healthy School Meals fund would provide funding for the State Free Feeding Program and In-Classroom Breakfast program. Both programs, created in a partnership between the Department of Education and county boards, would distribute funding to eligible non-public schools. Health impacts of sugary drinks The bill has gained support from the American Heart Association. In a statement, the organization said the bill would provide the revenue needed to address educational needs and food security while also curbing the health impacts of sugary drinks. According to the American Heart Association, nearly two-thirds of youth consume at least one sugary drink per day, contributing to health risks like tooth decay, type 2 diabetes and heart disease. "The For Our Kids Act represents a critical advancement in our mission to safeguard the health of children in Maryland," said cardiovascular nurse epidemiologist Yvonne Commodore-Mensah. "By taking strong action to curb the overconsumption of sugary drinks, while providing critical revenue to programs that benefit all families, we are making a powerful statement about prioritizing our children's well-being." The organization said 40,000 deaths in the U.S. are linked to excessive consumption of sugary drinks. Similar policies in the U.S. have led to more investments in public health and education, healthier choices for families and revenue that benefits children, the American Heart Association said.
Yahoo
13-02-2025
- Health
- Yahoo
Maryland lawmakers consider 2-cent tax on sugary drinks
The Brief Maryland lawmakers are considering a 2-cents-per-ounce tax on sugary drinks. If enacted, it's expected to generate up to $500 million annually. The money would go towards expanding access to free school meals, childcare subsidies, and the state's general fund. The next time you sip a Coke or a Kool-Aid, it could cost you. Maryland lawmakers are considering what's called the For Our Kids Act, which would impose a tax of 2-cents-per-ounce on sugary drinks, syrups, and powders. That includes artificially sweetened drinks, like a Diet Coke. It does not include products like natural juice. What they're saying "In aggregate, we're anticipating bringing in $500 million dollars a year," said Del. Emily Shetty (D – Montgomery County), adding that the money would go towards expanding access to free school meals, childcare subsidies, and the state's general fund – helping to shore up a $3 billion budget deficit. "We want to improve public health in our communities and really address the root cause of why our healthcare is starting to cost a lot more money, right? Like, as we have increases in consumption of sugary beverages, you see increased rates of cardiovascular disease, of dental issues, of cancers," Shetty explained. The legislation is similar to a law that was previously passed in Philadelphia, but Shetty said Maryland would be the first jurisdiction to enact a measure like this statewide. The other side There is opposition to the bill. House Minority Leader Del. Jason Buckel (R – Allegany County) sent FOX 5 a statement, saying, "It is disappointing that some in the General Assembly seem to pay no attention to the financial struggles many Maryland families are facing. This is a significant tax on items that are a staple in many households – not just sodas but on sugared drink mixes for lemonade and tea, Hi-C drink boxes, even Gatorade. This is not about making Marylanders healthier, it is about raising revenue because of our failed economic and spending policies here in Annapolis." Del. Kathy Szeliga (R – Baltimore County) also weighed-in, writing, "I fully support making Maryland healthy again, including efforts to reduce sugary drink consumption. If this new $500,000 tax proposed on sugary drinks was used to lower our total sales tax burden, it would be a win-win by improving health while lowering taxes. Unfortunately, this new tax will go into Maryland's general fund and create a new program which looks like government taxation disguised as health policy." What's next The bill still has a long way to go before becoming law. Shetty said that if everything goes as planned, the earliest the sugary drink tax could go into effect would be in about a year and a half. The Source For Our Kids Act, Del. Shetty, Del. Buckel, Del. Szeliga
