Latest news with #ForOurKidsAct
CBS News
18-03-2025
- Business
- CBS News
Maryland Gov. Wes Moore says broad business, sugary drink taxes not on final budget
Maryland Gov. Wes Moore told reporters on Monday that lawmakers have had "productive conversations" over the state's final 2026 budget. Moore's proposed budget aims to address a nearly $3 billion deficit through spending cuts and tax increases for residents who earn more than $500,000 annually. The state needs to adopt a balanced plan by April. The governor said that a broad tax on business-to-business services and a tax on sugary drinks would not be included in the budget. Maryland lawmakers had considered a tax proposal, which was a 2.5% business-to-business sales tax . However, the bill was faced with opposition, claiming the bill would hurt the state's efforts to attract businesses. The business-to-business tax was projected to raise nearly $1 billion in the first year. According to the Baltimore Banner , Moore said that he wants Maryland to be "the best place in the country in order for businesses to grow," which is why he rejected the business tax as proposed. Lawmakers were also debating whether to 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. "We have to bring down the cost of what people are seeing inside the grocery stores and supermarkets, and that's why things like the soda tax will not happen in the state of Maryland," Moore said. Gov. Moore made it clear that he would sign the budget that abides by three guidelines -- reforming the tax code, making Maryland more economically competitive and business-friendly and investing in the state's residents. "We've had very productive conversations with the General Assembly, with both the House and the Senate, to ensure that we are going to accomplish and hit every one of those benchmarks by the time we get to the close of the session," Moore said. "In order for any bill that makes it to my desk to get a signature, it has to hit those criteria." Under Moore's proposed tax plan, the state's lowest four tax brackets would be combined and taxed at a 4.7% rate, meaning that two-thirds of state wage earners would see a tax cut. Moore previously stated there would be $750 million in investments made in the state, including $128 million in targeted spending in key industries. He stressed that Maryland needs a strategy to move forward, including investing in life sciences, defense technology, and innovation. This plan would add to the state's prior investments on federal workers, the medical industry, and higher education. Gov. Moore says President Trump's implementing tariffs on steel and aluminum imports , while also targeting Canada and Mexico, is "disastrous" and "an attack on the economy." "The impacts of the Trump administration are real and we have seen it in just eight weeks, on how this has been a direct attack on the state of Maryland, direct attacks on our economy," Moore said. The Trump administration last week increased tariffs on all steel and aluminum imports to 25%, which has raised fears about the economy's impact, including in Maryland and at the Port of Baltimore. And, with 25% tariffs to be imposed on Canada and Mexico starting April 2, Moore said costs on imported goods could skyrocket. The governor echoed what he said on Sunday's "Face the Nation," that the policies, impacts of the tariffs, and layoffs of thousands of federal workers are unprecedented. "The assault that we are seeing right now, the direct assault that we are seeing from the federal government, is unprecedented, but I want the people of our state to know that even in this moment of crisis, this administration is going to meet the moment of crisis with courage and we are going to be OK," Moore said. Moore added that his administration is not going to back down from the federal government. "The thing that we know at this moment is that we are not just going to sit down and be attacked," Moore said. "We are going to make sure that we are going to fight back as a state."
Yahoo
07-03-2025
- Business
- Yahoo
Business owners aren't too sweet on proposed tax on sugary drinks
Dozens of people attended a House Ways and Means Committee hearing on a bill that would impose a tax on sugary drinks. (Photo by William J. Ford/Maryland Matters) Supporters of a bill to tax sugary drinks told a House committee Thursday that the bill would raise $500 million a year for healthy school lunches, child care scholarships and to bring down a looming state budget deficit. And it would make us healthier in the process, they said. To make that last point, Del. Emily Shetty (D-Montgomery) brought a 30-ounce soft drink, a bag of sugar cookies and a two-layer devil's food chocolate cake for her testimony to the House Ways and Means Committee. She counted out 11 cookies and cut a slice off the cake, and said the cookies and the rest of the cake had the same 110 grams of sugar as the Pepsi inside the Big Gulp. 'That's what we're talking about when we're thinking about the equivalent amount of sugar in this amount of soda,' Shetty testified. 'These beverages actually offer no health benefit. It's really easy to consume this quantity of sugar without actually feeling satiated.' Opponents agreed with the need to provide healthy options for people, but said Shetty's proposed 2-cents-per-ounce tax on sugary drinks, syrups and powders is not the way to do it. Besides increasing prices for consumers, they said, the tax could cost people their jobs in the beverage industry. 'This bill will take $500 million out of the grocery budgets of Marylanders,' said Marshall Klein, president of Klein's ShopRite with nine grocery stores in Baltimore and Harford counties and Baltimore City. 'It will make it harder for grocery stores operate. It will significantly impact the ability to address food desert issues,' Klein said to applause from the packed hearing room. The testimony came during more than two hours of debate on House Bill 1469, also called the 'For Our Kids Act.' The bill has also been assigned to the House Economic Matters Committee, some members of which attended Thursday's hearing. The bill proposes a tax on distributors of sweetened drinks including those with artificial sugar substitutes. Powders and syrups would also be taxed based on the total ounces of drink that each container could make. According to the bill's fiscal note, the tax would increase annually tied to inflation starting July 1, 2027. In years when the cost of living is flat or declines, the tax rate would not decrease but would remain the same. The proposal is similar to how the state calculates gas tax rates each year. The tax is based on a drink's volume rather than its sugar content. Of the revenue raised, about $189 million would fund free breakfast and lunch programs in the state Department of Education. Another $50 million would go to the department's child care scholarship program, which pays child care for working parents in some situations. State Superintendent Carey Wright said in December that the child care program costs could exceed $700 million a year on its current trajectory. The balance of money raised by the tax would go to the state's general fund. During the hearing, House Minority Leader Jason Buckel (R-Allegany) asked Shetty, with a can of Sprite in front of him, what other drinks the tax might apply to, pointing to protein drinks and artificial sweeteners. 'Artificial sweeteners are not actually healthier, right? That was the big reason for why we included them as part of this bill,' Shetty said. Del. Steven Arentz (R-Upper Shore), a member of the Economic Matters Committee, asked if everyone would be taxed. 'No, it's not tax increase on everyone sir,' Shetty said. 'It's a tax increase on those who choose to buy the beverages.' SUPPORT: YOU MAKE OUR WORK POSSIBLE If approved, Shetty said Maryland would be the first state to impose such a tax. Several cities approved a beverage tax, including Philadelphia, which the Maryland bill is modeled after. But business owners and beverage industry representatives testified that the Philadelphia tax, implemented in 2017, led to job losses, reduced work hours for employees and forced some customers to shop outside the city. Jim Pica, an attorney representing Royal Farms, said Cook County, Illinois, implemented a 1-cent-per-ounce tax in August 2017. Three months later, the county repealed it. But supporters such as Riccara Jones, political action chair for the Maryland State Conference of the NAACP, said the tax would ensure underserved communities receive healthier food options. 'For too long, sugary drink companies have targeted Black and brown communities with ads and promotions for soda, fruit drinks and sweet tea products that have proven to lead to serious health problems,' Jones said in virtual testimony. 'Outside of the positive impact that this would have on communities of color, it comes in a time when the state really needs the funding to cover programs that support working families like early childhood education, like child care and healthy school meals.' Del. Jheanelle Wilkins (D-Montgomery), who serves as vice chair of the Ways and Means Committee, said a Coca-Cola bottling facility is in her district. She complimented the business and the diversity of the workforce. 'Part of my concern…about this bill is the impact on the workers there. A lot of them have been there for at least 15 years,' said Wilkins, chair of the Legislative Black Caucus of Maryland. 'I'm going to unpack further the impact when it comes to workers, if this bill were to be implemented.'
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.
CBS News
18-02-2025
- Health
- CBS News
Proposed bill would tax sugary drinks in Maryland, allocate revenue to student meal programs
A bill introduced in Maryland could impose taxes on certain sugary drinks with some of the revenue going to support programs for students across the state. The For Our Kids Act, or House Bill 1469, defines sugary drinks as non-alcoholic, carbonated or non-carbonated beverages that contain added sugars or non-nutritive sweeteners. Natural fruit or vegetable juices, milk, infant formula and beverages for medical use would not be taxed under the bill. The bill 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 would support programs for children 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. 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," said cardiovascular nurse epidemiologist Yvonne Commodore-Mensah. The organization said 40,000 deaths in the U.S. are linked to excessive consumption of sugary drinks.
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
