Fortunately, law enforcement agencies around the world have caught onto this and, last October, the World Customs Organization (WCO) and INTERPOL targeted organized criminal counterfeiting networks across 13 countries in South America resulting in hundreds of arrests and the seizure of fake goods, including counterfeit soft drinks.

As lawmakers seek solutions to this and other serious issues facing our nation, we’d like to remind them that the beverage industry is an important part of America’s economy.  We provide more than 208,000 good-paying jobs across our country – and help to support hundreds of thousands more that depend, in part, on beverage sales for their livelihood – with a direct economic impact of $178.5 billion. In fact, beverage companies, employees, firms and employees indirectly employed by the industry also provide significant tax revenues – nearly $26 billion at the state level and as much as $32 billion at the federal level – and generously contribute at least $1.9 billion to charitable causes in communities across the nation.

The safety of our member companies’ products and their ingredients is our foremost priority.  Counterfeiters undermine consumer confidence and jeopardize American jobs.  And the good-paying jobs that rely on the sale of food, beverages and other non-food products are important, especially as hard-working families are still pushing through a down economy.  We take great pride in the fact that our industry is a long-standing contributor to the economic engine that drives our country.

The American Beverage Association supports the bill, which not only addresses school nutrition and compliments our industry’s School Beverage Guidelines, but provides for physical education in schools, nutrition education and improved access for physical activity in communities across the nation.  Measures such as these take on the challenge of obesity from both sides – addressing both sides of the energy balance equation.

It’s refreshing to see legislation introduced that attempts to tackle the complex problem of obesity in a holistic way.  Healthy communities, where children are taught how to eat right and and get exercise, are a great start.  As Rep. Kind wrote in a recent editorial, “We all know obesity is a concern in every community across our nation.  But by working together with a concerted, strategic policy, we can take better care of ourselves, confront this epidemic, and realize a decline in our healthcare costs.”

The Fly-In provides great opportunities for attendees to be briefed on pressing industry-related legislative issues from political thought leaders.  It also gives our member company representatives valuable face time with their elected officials.  In meetings on Capitol Hill, they will have time to share our industry’s position on how federal policies will impact their businesses, be able to update Members of Congress on pertinent issues and emphasize our leadership in schools, the environment and labeling information.  And this evening, attendees will be able to take in some dynamic and engaging speakers. 

With these unmatchable experiences, our annual Fly-In has become an increasingly popular event for our member companies to make certain their voice is heard with government representatives and those representatives enjoy it too, learning about issues of importance to the non-alcoholic beverage industry.

In a paper published this week by Tax Analysts, authors Chuck O’Toole and Nicola M. White warn lawmakers that such taxes will be a tough sell with the public, thus encouraging policy-makers to learn the recent lessons from two states.

The authors remind federal policy-makers that earlier this year New York’s governor proposed almost the identical tax on sweetened beverages that the Senate Finance Committee will be reviewing today. And just months after proposing the tax, the governor and senior legislative leadership called a news conference to publicly pull back the idea because of the strong public backlash.

Last year, the governor and legislature in Maine proposed a major tax on beverages to pay for the high costs of its state health care program. The people of Maine rebelled by using a provision called the “people’s veto” to overturn the tax by a two-to-one margin on the November 2008 ballot (yes, the same ballot on which Mainers gave overwhelming support to President Obama.)

The Tax Analysts article quotes Verenda Smith of the Federation of Tax Administrators as saying: “When I heard of the federal idea, my first thought was, ‘Good luck,’ and the second was, ‘Did they even think to look at the experience the states have had?’”

Ms. Smith went on to add this about soda tax proposals: “It does seem to offend people’s sense of what it feels like to be an American.”

The bottom line is that the public has shown disdain for soft drink taxes for many reasons, from economic concerns to the illogic of singling out one product for taxation. But the public seems to have allies in many tax professionals in being downright uncomfortable with lawmakers using the tax code to tell people what to eat or drink. This is viewed as an over-reach by government.

Tax Analysts describes itself as “a nonprofit publisher that provides the latest and most in-depth tax information worldwide. By working for the transparency of tax rules, fostering increased dialogue between taxing authorities and taxpayers, and providing forums for education and debate, Tax Analysts encourages the creation of tax systems that are fairer, simpler, and more economically efficient. To further our public-service mission, we supply a variety of information resources for tax professionals.”

It’s good to see a community that is expert at tax policy weighing in with some common sense. Their message is one we hope federal lawmakers pay heed to as they tackle an admittedly tough challenge in improving health care in America. There are better ways at this problem, as this blog has listed before.