This week the Oregon Public Health Division decided to embed government control further into the lives of Oregonians, proposing a 6 cent per 12 ounce bottle "sugary drinks" tax that would apply to most sodas, Gatorade, and ice tea. The regressive tax increase would generate $160 million for one of the most bloated state governments in the country, while further empowering bureaucrats and politicians to make usurp citizens' ability to make their own decisions.
In a letter to the Oregon Legislature, ATR President Grover Norquist wrote:
The expansion of the nanny state, in which government picks winners and losers in the marketplace and makes personal decisions on the public’s behalf, is troubling. Many individuals consume soda and other flavored drinks responsibly. By artificially increasing their price to fund unnecessary public sector largesse, state government is usurping their ability to do so.
But ultimately, this tax increase is about allowing government to continue to grow. It is an effective strategy employed by the tax-and-spend left: By imposing targeted tax hikes on sugary drinks, those who do not consume them have no incentive to vote to check the growth of government. These taxes are easy to increase, as their burden is not equally shared.
To see the letter in full, see below. For a PDF copy, click here.
August 17, 2010
Dear Legislator:
Recent efforts to end Oregon’s budget debacle have been incorrectly focused on revenue, rather than overspending. To that end, January’s $727 million in tax increases failed to solve the problem, as a new $577 million budget hole materialized just months later. Many in government have failed to get the message that government frivolity is to blame, with the Oregon Public Health Division reportedly crafting legislation to raise taxes on “sugary drinks” by $160 million. I urge you to oppose this big government scheme to impose regressive, unstable tax increases on Oregonians.
The Public Health Division proposal would impose a roughly six cent per bottle tax hike on soda and other sweetened drinks, including Gatorade and ice tea. This $160 million expansion of government is particularly regressive in nature, as low-income families will be forced to give up a larger portion of their income.
State government will attempt to sell this proposal as a step toward curbing obesity. While it is true that increasing taxes on a product leads to a decline in its consumption, a strong link between sugary drinks and weight gain has yet to be established. There are a number of factors that cause obesity; singling out sugary drinks is an unfair use of government power to restrict its citizens’ freedom to choose.
The expansion of the nanny state, in which government picks winners and losers in the marketplace and makes personal decisions on the public’s behalf, is troubling. Many individuals consume soda and other flavored drinks responsibly. By artificially increasing their price to fund unnecessary public sector largesse, state government is usurping their ability to do so.
But ultimately, this tax increase is about allowing government to continue to grow. It is an effective strategy employed by the tax-and-spend left: By imposing targeted tax hikes on sugary drinks, those who do not consume them have no incentive to vote to check the growth of government. These taxes are easy to increase, as their burden is not equally shared.
For those of you that have signed the Taxpayer Protection Pledge, a vote in favor of this proposal is a Pledge violation.
In this economic climate, jobs are at a premium. Oregon’s unemployment rate stands at 10.5 percent, and the business community took a serious hit after January’s tax increases. Beverage manufacturers are employers too, and targeting them with higher taxes harms their ability to hire and maintain their workforce. I urge you to oppose this counterproductive tax increase and work instead to slim down government to the benefit of the job-creating private sector.
Onward,
Grover Norquist
CC: Governor Ted Kulongoski