The Empire Page

Governor Paterson is trying to resurrect the beverage tax on sugared sweetened drinks which New Yorkers vehemently fought last year, and won.   Last year was bad enough.  The Governor tried to impose an 18-percent tax in 2009 which translated to an additional 55 cents to the cost of a 12-pack of soda. 

Paying Twice for One Product

Now, in 2010, Governor Paterson is trying to sneak through a penny an ounce tax.  That may not sound like a lot until you do the math and realize that a 12-pack of 12-ounce cans of soda equals 144 ounces or $1.44 per pack extra for state taxes!  And, for a 2-liter bottle of soda, that’s an additional 67 cents in taxes.  This state tax would be more than nine times higher on a 12-pack of soft drinks than the state tax on a 12-pack of beer.   And, it’s important to note that this tax is on top of the state tax that New Yorkers already pay for their favorite beverage. This results in paying the state twice -- double taxation – for a single product. 

Impacting Individuals, Hurting the Economy

It is outrageous to think that New Yorkers, who are struggling to make ends meet in this economy should bear the burden of fixing the Governor’s budget problems by paying an exorbitant amount in new taxes on the beverages they love.  This is not just another tax.  This is an unfair tax that will be detrimental to hardworking New Yorkers and businesses alike.

This tax will pose a great hardship to the economy in general.  The beverage industry is one of the largest industries in New York State.  The industry currently supports more than 160,000 good-paying jobs in New York, totaling approximately $6.7 billion in wages.  These statewide jobs are held in manufacturing, distribution and retail.  The non-alcoholic beverage industry in New York State has a direct economic impact of $7 billion per year and supports an additional $18 billion in economic activity. 

Many small supermarkets and bodegas are already struggling in this economy.  One-third of New York’s supermarkets have closed in the past six years and, since 2007, the number of bodegas has decreased by nearly one thousand.  Everyone from distributors to supermarket and bodega owners will be severely impacted by this tax because consumer spending will decrease. 

This is Not About Health

Contrary to what Governor Paterson has stated publicly, this is not a health issue.   Rather, Governor Paterson is using health as a façade when the real issue is grasping at ways to close the serious budget gap. 

Science shows that calorie balance is what matters when it comes to losing weight and maintaining a healthy weight - not focusing on specific foods or abstaining from particular foods and beverages that are enjoyed. 

New Yorkers have the right to their choice of beverage and should never be limited because the state government is making a favorite beverage impossible to afford.

How New Yorkers Can Fight Back

New Yorkers should go to www.nobeveragetax.com where they can send a message directly to their state senator and assembly member.  It’s important for every single voice to be heard. 

In 2009, New Yorkers fought hard, put a lot of pressure on the state government, and stopped the double tax in its tracks.  We all said “no” last year, and the Governor listened.  Let’s make sure everyone sends a message to Albany today and tells them “no” once again in 2010. 

This new tax on sugared drinks is far from being pennywise; as a matter of fact, it’s outrageously foolish.

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Nelson Eusebio is the Chairman of New Yorkers Against Unfair Taxes, a coalition that includes New York citizens and business groups.