November 29, 2009

SODA-POP TAX - LIVE AMMUNITION

President Barack Obama was sailing along nicely with sweet-talk and proposals until last week.

Then, the House and Senate proposed a  3-cent “excise” tax on 12-ounce soda-water drinks such as Coca-Cola, Pepsi, Nehi and Sprite.

The new tax is said to be capable of raising   $24 billion over 10 years to help pay for “healthcare reform.”

The New England Journal of Medicine first proposed a soda-water tax last April.  Shortly thereafter, Obama nominated one of its authors – New York City public health chief, Thomas Frieden -- as director of the Center For Disease Control and Prevention.

SOFT-DRINK BATTLE

According to the independent, daily, newspaper The Hill -- published expressly for and about congressional representatives – soft-drink companies have been battling state and municipal taxes on their products for years.

“For instance, the industry and its allies beat back New York Gov.  David Patterson’s proposed soda tax this year -- and supported a ballot initiative to repeal a soda tax approved in Maine last year.

“In an interview that appeared in the July issue of Men’s Health, Obama said a soda tax is something that should be explored.  “There’s no doubt that our kids drink way too much soda.

“If you wanted to make a big impact on people’s health in this country, reducing things like soda consumption would be helpful!”

SODA TAX EFFORTS

Soft drink companies have been battling state and municipal taxes on their products for years.

For instance, the industry and its allies beat back New York Gov.  David Paterson’s proposed soda tax this year -- and supported a ballot initiative to repeal a soda tax approved in Maine last year.

Kevin Keane, vice president for public affairs at the Beverage Association, said: “This is the first time we’ve had this serious a threat of an excise tax at the federal level.”

He added that the industry has dialed down is activity this month as it has become clear the tax will not be in a healthcare bill.  We are certainly encouraged that we’re pretty far down the road  -- and we’re not in any major legislation.

SWEET TALK

Obama’s first year in office looms next month, and healthcare certainly will be a major challenge.

However, other major issues also will demand attention and funds – especially Afghanistan, and Iranian threats with nuclear weapons.

Obama will go to Norway to accept a Nobel Peace Prize for sweet talk.  However, he and a Democrat-controlled Congress have done little – so far -- to bolster the American economy struggling with higher-than-world average costs.

RATINGS DROPPING

Polls last week showed President Obama’s approval rating dropping below 50 percent.

Another two or three months without marked improvement in the economy – his approval rating will nose-dive.

Talk that sways voters before elections, will turn to disdain if unemployment hangs in the 10 percent level very long.

World markets -- particularly in India and China -- have great impact on the American economy.

Wages abroad with our trading partners set the economy pace world-wide – without labor unions, elaborate healthcare programs or government subsidized home loans.

They smile, but act only to keep us afloat – not to outpace them.

PARTING SHOT

G.K. Chesterton had good advice for world powers. “My country right or wrong” is like saying, “My mother drunk or sober.”

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist