Soda taxes create complicated rules

Transcription

1 Soda taxes create complicated rules By Stateline.org, adapted by Newsela staff on Word Count 594 Level 840L Beverages for sale at Fresh Market Place on North Western Avenue are pictured on August 10, Sweetened beverages got hit with a tax of a penny per ounce in Cook County, Illinois. Photo by:terrence Antonio James/Chicago Tribune/TNS WASHINGTON, D.C. This year, three regions in the United States decided to tax certain drinks. They were Seattle, Washington, Philadelphia, Pennsylvania, and Cook County, Illinois. This kind of tax is sometimes called a "soda tax." The governments in these places added taxes to some types of drinks. This means it now costs more to buy them. That extra money goes to the government. The government can use it for all kinds of things, such as after-school programs or parks. Officials said they are trying to keep people from becoming obese. This is when someone is overweight to the point that it is harmful to his or her health. The governments also want to save money that is spent when people are sick from being overweight. Also, raising taxes is also a way for governments to collect more money. These taxes are confusing for shoppers, though. This article is available at 5 reading levels at 1

2 Affecting Other Drinks Besides Soda The taxes are known as soda taxes, but other drinks are taxed, too. In some places, diet sodas, iced coffee and juices are taxed in addition to regular soda. The rules for taxing beverages are different in each place. That's what can make the taxes so confusing. Meg Wiehe works for the Institute on Taxation and Economic Policy. She said it is difficult to determine what should be included in "soda taxes." "It creates all sorts of crazy rules," Wiehe said. "You have to draw the line somewhere. Still, many places in the United States are in favor of these "soda taxes." Different Approaches To Taxes Some studies show the taxes keep people from buying sugary drinks. For example, Berkeley, California added taxes to certain drinks. In time, fewer people there were drinking the sugary drinks. At the same time, more people were drinking water, which is not taxed in Berkeley. Cook County is in Illinois and includes the city of Chicago. The tax there includes regular soda, diet soda, sports drinks and energy drinks. It also includes juice that isn't 100 percent fruit or vegetable juice. Seattle took a slightly different approach. Starting in 2018, the city will apply a new 1.75-centper-ounce tax on sweetened drinks. This is about $1.18 for a 2-liter bottle of soda. The tax covers sports drinks, energy drinks, fruit drinks and syrups used in fountain sodas. It does not include diet sodas. The city pointed out higher rates of health problems like obesity and diabetes. City officials debated whether to also add the tax to diet drinks. Seattle officials decided that diet soda is less harmful than regular sodas. As a result, it was not included in the tax. In Philadelphia, a soda tax went into effect January 1. It includes sweetened and diet beverages. The syrups used in soda fountain machines are also taxed. Almost every kind of drink that comes in a bottle or can is taxed. Milk, water and pure juices without added sugar are not taxed, though. Philadelphia does not tax bottled water, even if it is flavored. Beverage companies say the taxes are unfair. They don't think drinks should be taxed. This article is available at 5 reading levels at 2

3 Taxes Going Toward Special Programs Money collected from these taxes will help education programs. So, many people like the idea of taxing sugary drinks. In Philadelphia, the beverage tax collected $6.5 million in July. The city is hoping to collect $90 million in one year. This means it will need to collect more money each month to reach this goal. City officials say they aren t worried. They say the new money is still paying for education programs that didn't have money before. This article is available at 5 reading levels at 3

4 Quiz 1 What is the MAIN idea of the section "Different Approaches To Taxes"? Beverage companies feel the taxes are unjust. The regions with the most obesity are enforcing the highest taxes. The regions that are taxing drinks are doing it in their own ways. Seattle has come up with the best tax policy for sweetened drinks. 2 Read the sentences summarizing the MAIN ideas of the article. Some regions of the United States are taxing certain drinks to keep people healthy. However, these taxes are very confusing since different areas are taxing different beverages. Which answer choice would complete this summary? As a result, some citizens are joining forces with beverage companies to fight this kind of tax. Consequently, the federal government plans to meet to make these taxes more clear for citizens. Regardless, the proceeds from these taxes will be used to pay for education programs. Nevertheless, studies will soon follow to see if these taxes are helping the obesity problem in the United States. 3 Read the sentence from the section "Different Approaches To Taxes." City officials debated whether to also add the tax to diet drinks. What is the meaning of the word "debated" as it is used in the sentence above? discussed presented demanded questioned This article is available at 5 reading levels at 4

5 4 The word "complicated" is essential to understanding the drink tax. Which sentence from the article BEST explains what "complicated" means? The governments in these places added taxes to some types of drinks. Officials said they are trying to keep people from becoming obese. The rules for taxing beverages are different in each place. Beverage companies say the taxes are unfair. This article is available at 5 reading levels at 5

6 Answer Key 1 What is the MAIN idea of the section "Different Approaches To Taxes"? Beverage companies feel the taxes are unjust. The regions with the most obesity are enforcing the highest taxes. The regions that are taxing drinks are doing it in their own ways. Seattle has come up with the best tax policy for sweetened drinks. 2 Read the sentences summarizing the MAIN ideas of the article. Some regions of the United States are taxing certain drinks to keep people healthy. However, these taxes are very confusing since different areas are taxing different beverages. Which answer choice would complete this summary? As a result, some citizens are joining forces with beverage companies to fight this kind of tax. Consequently, the federal government plans to meet to make these taxes more clear for citizens. Regardless, the proceeds from these taxes will be used to pay for education programs. Nevertheless, studies will soon follow to see if these taxes are helping the obesity problem in the United States. 3 Read the sentence from the section "Different Approaches To Taxes." City officials debated whether to also add the tax to diet drinks. What is the meaning of the word "debated" as it is used in the sentence above? discussed presented demanded questioned This article is available at 5 reading levels at 6

7 4 The word "complicated" is essential to understanding the drink tax. Which sentence from the article BEST explains what "complicated" means? The governments in these places added taxes to some types of drinks. Officials said they are trying to keep people from becoming obese. The rules for taxing beverages are different in each place. Beverage companies say the taxes are unfair. This article is available at 5 reading levels at 7