Fat tax on sugary drinks

New York City plans to tax non-diet soft drinks

Drinking cans of Coca-Cola is about to get a whole lot more expensive for New Yorkers.

The city’s governor, David Paterson, wants individuals to pay more for non-diet soft drinks in an effort to boost the state’s general health, but also to help a massive budget deficit of that runs into the billions.

Unsurprisingly, makers of the drinks are up in arms, although Paterson says better they lose out than everyone have to start paying more income tax.

‘You can’t tax $50 billion on New York’s wealthiest residents,’ he’s quoted as saying in the New York Times. ‘You are going to have to take it from other places and hopefully, if there were to be an income tax, it would be at the end of the process, not the beginning.’

Other places being soft drinks, but also luxury items such as furs and boats.

The American Beverage Association is fighting back, telling reporters: ‘It looks like a money grab. [Mr Patterson] is trying to grab money anywhere he can find it. This is a time when the government, just like families, needs to tighten its belt.’

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