NASHVILLE, Tenn. – A bill scheduled to be heard in a House subcommittee this week aims to lower the state's food tax while helping to combat childhood obesity.
The measure, sponsored by Democratic Rep. Mike Stewart, of Nashville, would cut the state's food tax by 1% and increase the tax on sugar sweetened beverages to pay for it.
"Families have to buy food, but they can cut back on non-essential items like soda when times get tough," Rep. Stewart said in a release.
Even with the proposed tax, soda would remain cheaper than it was in the 1970s, when adjusted for inflation.
"With the use of high fructose corn syrup instead of cane sugar, the price of soda has come way down whereas the price of food is going through the roof," Stewart continued, adding, "This is one way to help a young family buy food without imposing a new tax on businesses that might hurt the economic recovery."
Additionally, studies show that much like the cigarette tax, a tax on sugary drinks would help lower consumption and improve overall health.
At 5.5%, Tennessee's food tax is one of the highest in the nation.
The proposed 1% reduction would be entirely paid for by the increased tax on sodas.
Beverages that are not sugar sweetened, such as diet sodas, would be taxed less under the proposed change.
"For most families, this will be a well-deserved tax break," Stewart said.
The Beverage Association of Tennessee is against the measure and told Nashville's News 2, "It is offensive, arrogant and insulting to Tennessee shopper's to argue that they need the government to tell them what is essential or non-essential when it comes to their personal grocery purchases and health."
Raymond Thomassom, the group's president, said while "beverages and food play a role in determining good health" so do other important factors such as exercise and a balanced diet.
He added the soft-drink industry has acted responsibly by providing a wide array of beverages with varying calorie ranges and shouldn't be punished.
Lastly, citing data from the National Cancer Institute, the association said calories from sugar-sweetened beverages, including soft drinks, make up only 7% of the calories in the American diet, meaning 93% of the calories come from other foods and beverages.
The bill is scheduled to be heard in the House Budget Subcommittee at 11 a.m. Wednesday.
