Pro-tax: Soda taxes then and now

And now for a brief, nostalgic look into the past and present of the soda tax...

1776 | Adam Smith, in his landmark Wealth of Nations, states:

Sugar, rum, and tobacco are commodities which are nowhere necessities of life, which are become objects of almost universal consumption, and which are therefore extremely proper subjects of taxation. [An Inquiry into the Nature of Causes of the Wealth of Nations (1776); New York: E. P. Dutton & Co., 1910; available on Google Books.]

July 2009 | President Obama tells Men’s Health magazine that taxing soda is “an idea that we should be exploring.” This quote is taken from pages 7–8 of the article:

Would the president consider so-called sin taxes, on soda and other sugar-laden products, or on activities that sabotage the health of the masses? (When I suggest this, I’m picturing tollbooths on every point of access to Vegas.)

“I actually think it’s an idea that we should be exploring,” the president says. There’s no doubt that our kids drink way too much soda. And every study that’s been done about obesity shows that there is as high a correlation between increased soda consumption and obesity as just about anything else. Obviously it’s not the only factor, but it is a major factor.”

But even the most powerful man on the planet needs to keep an eye on what’s politically feasible: “Obviously there is resistance on Capitol Hill to those kinds of sin taxes,” he says. “Legislators from certain states that produce sugar or corn syrup are sensitive to anything that might reduce demand for those products. And look, people’s attitude is that they don’t necessarily want Big Brother telling them what to eat or drink, and I understand that. It is true, though, that if you wanted to make a big impact on people’s health in this country, reducing things like soda consumption would be helpful.”

Not bad when the father of modern economics supports your cause.