New York State is considering a tax on sugary soft drinks, and the American Beverage Association (you can guess who funds them) is running television ads opposing the tax. The ads have a man described as a New York minimarket owner saying that the tax will hurt his customers and his business. In fact, he says, his customers are on such tight budgets that "the majority of them" come into his shop with "notepads and calculators." Really?
Actually, it doesn't matter if he's exaggerating. The state is considering the tax because some politicians think that sugary soft drinks contribute to obesity, which ends up costing taxpayers money through higher costs in government health insurance. If the politicians are right, sugary soft drinks are like cigarettes and alcohol; consuming them makes other people worse off, so it's better for society if you don't consume as many of them as you'd like. That's the argument that the American Beverage Association should be trying to disprove, with scientific research and budgetary studies. But they're not - they're talking about notepads and calculators instead.
Friday, March 5, 2010
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Daniel Altman is a Harvard-trained economist who has been an economics columnist for The Economist, The New York Times and The International Herald Tribune. He is the author of three books and teaches a course on the future of the global economy at New York University's Stern School of Business.
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