News Releases & Statements

American Beverage Association Statement in response to the New York Governor's Proposal to Raise Taxes

FOR IMMEDIATE RELEASE
December 15, 2008

Contact: ABA Press Office
(202) 463-6770

AMERICAN BEVERAGE ASSOCIATION STATEMENT IN RESPONSE TO THE
NEW YORK GOVERNOR'S PROPOSAL TO RAISE TAXES

In an economy like this, the last thing government should do is raise taxes on the middle class. But that is exactly what Gov. Paterson is proposing to do in his 2009 budget. This is purely a money grab that would be paid for by hardworking New York families.

Many New York families are already struggling to keep their homes, pay their bills, and maybe buy some presents for Christmas - all while hoping that the recession doesn't take their jobs. Now, the governor is talking about raising taxes on everything in the shopping cart - from clothing to shoes to regular soft drinks - and on other everyday items like health care, DMV and state park fees, as well as college tuition. The call to raise taxes now is simply out of touch with the plight of middle-class families.

The beverage industry supports 160,000 jobs in communities across the Empire State that pay $6.7 billion in wages and support $25 billion in economic activity. These are tax hikes that will further burden the checkbooks of New York families and also jeopardize the paychecks of many hardworking people.

We know these kinds of taxes aren't supported by the public. Earlier this year, the Maine governor and legislature imposed a large tax on alcoholic and non-alcoholic beverages, and the people of Maine rejected them outright with more than 64 percent of the vote - a clear sign that, in these troubling times, people can't afford the burden of higher taxes.

Furthermore, the governor's rationale for the tax is flawed; it makes no sense to single out one food product as the cause for obesity. There is no science or logic that justifies it. Rather, we need to focus on promoting balanced eating habits and more physical activity. Until we get our kids exercising more the scales will be tipped against our next generation.

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The American Beverage Association is the trade association representing the broad spectrum of companies that manufacture and distribute non-alcoholic beverages in the United States.