The president of the Cook County Board proposed a 1-cent-per-ounce tax on sugary beverages — soft drinks, sports and energy drinks, and juices that aren’t 100 percent fruit — to close a $174-million budget gap in the county that includes Chicago and 40 percent of Illinoisans. Like Philadelphia Mayor James Kenney, board president Toni Preckwinkle says the levy is fiscal tool.
“We had a gap to fill,” Preckwinkle said on WTTW-TV. There was no support for an increase in county property or sales taxes, so the soda tax was the last of three options. “We needed to raise the revenue and … we knew it was good public policy.”
If approved by the county board, the tax, estimated to raise $74 million a year, would take effect July 1. It would be part of a $4.4 billion county budget. The board is to vote on the proposal on Nov. 16. Three California cities — San Francisco, Oakland and Albany — and Boulder, CO, hold referendums on soda taxes Nov. 8. Berkeley, CA, was the first U.S. city, in 2014, to adopt a soda tax. Philadelphia’s City Council approved a 1.5-cent tax in June. Kenney said the revenue would be used to expand pre-school and overhaul parks, libraries and recreation centers.
Preckwinkle said the soda tax would avert layoffs in Cook County law enforcement, from sheriff’s deputies to prosecutors and public defenders, according to the Chicago Sun-Times. On WTTW, she said, “This is a three-year plan,” so there would be no other tax increases in the near future.
In the California and Colorado referendums, proponents say the soda tax is part of a campaign against obesity, which can lead to chronic diseases such as diabetes, heart disease and cancer. Philadelphia was the first locality where budgetary necessity was the primary argument for a soda tax.
The Illinois Beverage Association said families should not face “a tax on their groceries,” said the Sun-Times. The trade group counted 90,000 jobs in restaurants, grocery and convenience stores, movie theaters and other food outlets, “all of which could be hurt by a proposed tax.” The Teamsters union said its Chicago-area members opposed the tax.
In an essay, two Tax Foundation officials said, “There doesn’t seem to be a tax shortcut for a slimmer America. If we really want citizens to live healthier lives, we will have to continue to educate them on the effects of their nutritional choices, and let people find better ways to control their own health.” In the essay posted by U.S. News and World Report, the Tax Foundation said soda taxes are regressive, affect a small part of the diet and complicate bookkeeping for businesses.
To watch the WTTW interview of Preckwinkle, click here.