Home > ADVOCACY > Where We Stand > Sodas and Sport Drinks Tax

January 21, 2010


Hon. Thomas Duane
Chairman, NYS Senate Standing Committee on Health
c/o Alison Jacobs
New York State Senate
433 Capitol, Albany, NY 12247

Dear Senator Duane:

On behalf of the 2,500 employer members of the Buffalo Niagara Partnership, I write in firm opposition increased NYS taxes on sodas and sport drinks. The Partnership and the Unshackle Upstate coalition stand firm that the state’s approach to dealing with its budget deficit be through government spending reductions, and not through any new or increased taxes.

This particular tax proposal is especially counterproductive. Loss of revenues to the beverage industry due to consumers looking elsewhere (i.e. other states and Indian reservations) to purchase soft drinks will result in a further decline in that industry’s employment in New York. Bottling plants in Binghamton and Rochester have recently closed, eliminating over 500 jobs – at a time when Upstate jobs are at a premium.

While many argue that there is a public health benefit associated with such a tax, experts say that the key to fighting obesity is reducing overall caloric intake and increasing physical activity. Singling out one industry as the cause for the public’s health issues is clinically inaccurate. While we support the state’s efforts to educate consumers on health dietary choices, it is inappropriate for Albany to attempt to dictate behavior through tax policy – particularly policy that will cost Upstate jobs.

Overall, raising taxes to support Albany’s spending as a “habit” is a failed concept – as evidenced by the state’s growing budget deficit. Unchecked, the state’s deficit will continue to grow to over $30 billion within five years. Nickel-and-dime taxes such as the proposed soft drink tax will not mitigate that hole in the budget. Reducing spending is the only avenue to righting the state’s fiscal ship.

New or increased taxes – including the proposed tax on sodas and sport drinks as a revenue item in Governor Paterson’s Executive Budget – are unacceptable.

Sincerely,

Andrew J. Rudnick