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THENOT-SO-EMPTY

CALORIESWE DRINK

Kerry O’Rourke

HPA 430

2.12.13

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POLICY ACTION PLAN OVERVIEW

Position: Illinois should impose an excise tax on sugar-sweetened beverages

Why? Research shows that making soda and other drinks with added sugar more expensive can reduce consumption

End Goal: Reduce rates of obesity in children and adults

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IT’S NOT JUST SODA…GULP!

It’s SSBs (sugar-sweetened beverages) Sports drinks Fruit drinks Teas Flavored/enhanced waters Energy drinks Soda (or pop, as we say in Illinois)

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WHY PICK ON SODA?

Since late 1970s, adult consumption of SSBs has more than doubled.

SSBs provide the largest source of daily calories in the diets of U.S. children ages

2-18.

SSB consumption is highest among the groups that are at greatest risk of obesity and type 2 diabetes.

Source: Friedman RR, Brownell, K. (October 2012). Rudd Report on Sugar-Sweetened Beverage Taxes: An Updated Policy Brief. Yale Rudd Center for Food Policy & Obesity.

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THE SKINNY ON SUGAR

One 12-oz can of soda has about 10 tsp of sugar -- about as much added sugar as the USDA recommends we have each day

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WHY IMPOSE A TAX?

Research shows making these drinks more expensive could reduce consumption

Taxing tobacco has worked to reduce consumption

Revenue can pay for nutrition programs and obesity prevention efforts

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OBESITY AND TAXES

Two complicated topics!

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EXCISE VS. SALES TAXES

What’s the difference? Excise taxes are reflected in the shelf price of an

item Sales taxes are added at the register

Excise taxes can be more effective Consumers notice the higher price when they

reach for the beverage on the shelf

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RESEARCH IS POURING IN

One systematic review reported that a 10% price increase could reduce soft drink consumption by ~8%.

The evidence suggests that a tax of 1 cent or 2 cents per ounce would raise prices enough to reduce consumption.

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BUT MORE RESEARCH IS NEEDED

Experts aren’t yet sure what the impact of taxes will be on actual weight loss.

So, we won’t stop other efforts.

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THE SITUATION IN ILLINOIS

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OBESITY AMONG ADULTS IN ILLINOIS

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OBESITY AMONG YOUTH IN ILLINOIS

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RESEARCH IN ILLINOIS

Ongoing at the Health Policy Center at UIC’s Institute for Health Research and Policy NIH funding for a longitudinal study Testing the hypotheses that higher SSB state and

local taxes will lead to: Lower household SSB purchasing Lower BMIs and obesity rates

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RESEARCH IN ILLINOIS

The IHRP team is looking at numerous outcomes: Beverage consumption Tax revenues Frequency of SSB consumption Diabetes incidence Health care costs of diabetes Obesity prevalence Obesity-related health care costs

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ALTERNATIVE TAX SCENARIOS

No Tax 1 cent All Beverages 1 Cent SSBs Only 2 Cents all Beverages 2 Cents SSBs Only0

100

200

300

400

500

600

700

620.1

522.7

473.9

425.2

327.8

Estimated SSB Consumption,Illinois 2011

(In Millions of Gallons)

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THE “WIN-WIN” FOR ILLINOIS

SSB tax increase↓

New revenues↓

Reduce SSB consumption↓

Reduce obesity and related diseases↓

Lower health care costs and healthier residents

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INCREASING TAX IN ILLINOIS

Illinois has a sales tax of 6.25% now on many beverages

Chicago has an additional 3% tax on bottled and canned soda and an additional 9% tax on fountain soda syrup A resolution was introduced last spring in the

Chicago City Council designed to “start a dialogue” on the subject

The Illinois legislature has enacted a soda tax cap for Chicago

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INCREASING TAX IN ILLINOIS

The path to a tax increase goes through the General Assembly

SB396 was introduced in 2011

1-cent per ounce excise tax on SSBs to be paid by beverage distributors

Creation of Illinois Health Promotion Fund

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POSSIBLE NEXT STEPS

Senator John G. Mulroe (D)10th District in Chicago

Chair of the Public Health Committee

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PUBLIC HEALTH COMMITTEE

Chair: John G. Mulroe-D Vice-Chair: Mattie Hunter-D Members: Napoleon Harris III-D Kwame Raoul-D Heather A. Steans-D Patricia Van Pelt-D Minority Spokesperson: Dave Syverson-R Members: Darin M. LaHood-R Jim Oberweis-R

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POSSIBLE NEXT STEPS

Revisit SB 396 Strategy Additional supporters Amount of tax Group paying the tax

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FROM A PUBLIC HEALTH PERSPECTIVE

Emphasize the benefits to children Highlight recent research Position it as a population health measure

Success of tobacco taxes

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STAKEHOLDERS LIKELY TO SUPPORT TAX PRO

Government-Related Illinois Department of Public Health Chicago Department of Public Health Cook County Department of Public Health National Conference on Mayors Institute of Medicine United Nations White House Task Force on Childhood Obesity

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STAKEHOLDERS LIKELY TO SUPPORT TAX PRO

Community-Based Organizations/Non-Profits CLOCC (Consortium to Lower Obesity in Chicago

Children) Illinois Alliance to Prevent Obesity

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STAKEHOLDERS LIKELY TO SUPPORT TAX PRO

Professional Groups American Medical Association American Academy of Pediatrics American Public Health Association American Cancer Society American Heart Association

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STAKEHOLDERS LIKELY TO SUPPORT TAX PRO

Universities Institute on Health Research and Policy at UIC Yale Rudd Center for Food Policy & Obesity UC Berkeley’s Center for Health and Public Policy

Studies Think Tanks

Bipartisan Policy Center Brookings Institution Urban Institute

Foundations Robert Wood Johnson Foundation

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STAKEHOLDERS LIKELY TO OPPOSE TAX CON

Business and Industry/Trade Groups Illinois Restaurant Association Illinois Beverage Association (includes

distributors) Illinois Food Retailers Association

Advocacy Groups Chicago Coalition Against Beverage Taxes Americans for Tax Reform

Unions Teamsters

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REFERENCES

Amendment to Senate Bill 396. (2011, April 1). Springfield, IL: Illinois General Assembly. Chaloupka, F. J., Wang, Y. C., Powell, L. M., Andreyeva, T., Chriqui, J. F., & Rimkus, L. M. (October

2011). Estimating the Potential Impact of Sugar-Sweetened and Other Beverage Excise Taxes in Illinois. Cook County Department of Public Health.

Chicago Department of Public Health. (July 2010). Can Taxes on Sugar-Sweetened Beverages Reduce Obesity?

Choucair, B. (May 2012). The Relationship between obesity and sugar-sweetened beverages; testimony from Dr. Bechara Choucair.

Eng, M. (2012, April 30). City set to hear testimony on soda taxes. Chicago Tribune. Friedman RR Brownell, K. (October 2012). Rudd Report on Sugar-Sweetened Beverage Taxes: An

Updated Policy Brief. Yale Rudd Center for Food Policy & Obesity. Lustig, R. H., Schmidt, L. A., & Brindis, C. D. (2012). The toxic truth about sugar. Nature, 27-29. The Urban Institute. (2009, July 24). Reducing Obesity: Policy Strategies from the Tobacco Warsr.

Retrieved from http://www.urban.org/publications/411926.html U.S. Centers for Disease Control and Prevention. (2010, 2011). Behavioral Risk Factor Surveillance

System. Retrieved from http://www.cdc.gov/brfss/index.htm UIC Institute for Health Research and Policy. (n.d.). Association Between Local and State Sugar-

Sweetened Beverage Taxes, Beverage Purchasing Patterns and Weight. Retrieved from http://www.ihrp.uic.edu/study/association-between-local-and-state-sugar-sweetened-beverage-taxes-beverage-purchasing-pattern

Yale Rudd Center for Food Policy & Obesity. (November 2012). Sugar-Sweetened Beverage Taxes and Sugar Intake: Policy Statements, Endorsements, and Recommendations.

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QUESTIONS? Thank you