Daily Archives: July 30, 2014

Sweet deals, or no deals?

The 2015 legislative session looks to be big and contentious, including the likely rollout of Governor Shumlin’s single-payer health care plan and a serious debate over public-school organization and financing. We can also expect a new battle over campaign finance reform, VPIRG’s #1 issue for the year.

And there will be a new fight over taxing sugar-sweetened beverages, a measure that has failed twice in recent years. But a new year, a new push, and a new guy taking leadership: Anthony Iarrapino is leaving the Conservation Law Foundation to head the Alliance for a Healthier Vermont, the coalition that spearheaded the sugar-tax fight in 2013. Iarrapino told VTDigger, in the words of Bullwinkle T. Moose, This time for sure.

“We’re going to have the resources this time around to really mobilize and educate the public and policy makers on the wisdom of Vermont once again leading the nation in an important policy area,” he said.

The Alliance claims to have $200,000 to bankroll its campaign and counter the efforts of Big Food and the ever-vigilant Vermont Retail and Grocers’ Association. It also seeks to piggy-back on health care reform, by offering a short-term revenue boost from the tax and the longer-term cost reductions from lower rates of sugar-induced illnesses.

It’ll be interesting to see how Governor Shumlin plays this. (Yes, I’m assuming his re-election. Aren’t you?) He can surely use every bit of money he can find for single-payer; but he’s opposed this tax in the past, and his campaign is getting heavy support from the likes of Coca-Cola.

But I would be Shocked, Shocked, if there were any quid pro quo involved.

Jim Harrison of the Retail Association is dusting off his talking points, including the hardy perennial “a tax would hurt retailers near New Hampshire.” Yeah, well, it might hurt big supermarkets within shouting distance of the border, since a 2-cent-per-ounce tax adds up if you’re buying a 30-pack of Mr. Pibb. I doubt it’ll impact our cherished Mom and Pop enterprises; hard to see too many folks driving across the border if they’re just stopping in for a quick Gatorade fix.

But Harrison’s biggest laugh line was this:

Nothing has changed since previous efforts to pass the tax, adding that it’s still regressive and “goes down the path of government trying to decide what’s best for consumers through tax policy,” Harrison said.

Bwahahahaha. Stop it, Jim, you’re making me shoot coffee out my nose.

You kiddin’ me? Government uses tax policy ALL THE TIME to “decide what’s best for consumers.” Take the mortgage interest rate deduction or the charitable contributions deduction. Take any stinkin’ tax deduction, break, subsidy, or exception. Take the capital gains tax rate, which decides it’s better to be a rich investor than a working stiff.

And if you just want to talk about sweeteners, well, that’s the mother lode of government using tax policy to “decide what’s best for consumers.” Agribusinesses that produce sugar and corn benefit from extremely generous subsidies, price supports, and free “insurance.” The result is lost tax revenue for the public till, a farm system that’s heavily skewed toward the biggest producers and commodity crops that go into junk food of all kinds, and — pay attention, Jim — higher cost for consumers because of artificially high sugar, corn, and soy prices.

So please don’t insult our intelligence with that “government shouldn’t decide what’s best for consumers” nonsense. That ship sailed a very long time ago.

Anyway, it should be an interesting battle. I expect legislative leaders to trot out the old reliable “too many other issues on our plate” line, in an effort to put off consideration of the sugar tax. It’ll be up to the likes of Iarrapino to make it a fight they can’t postpone. As we saw with the GMO labeling bill this year, it’s possible to build momentum behind an issue that lawmakers might prefer to duck, but it takes a concerted effort.

And it’ll require a softening of Shumlin’s hard-line stance. Not an easy thing to accomplish.

Advertisements