Maryland lawmakers debate imposing taxes on certain sugary drinks
Will Marylanders have to pay more for their favorite drinks like soda?
The House of Delegates Ways and Means Committee heard more than two hours of testimony from those for and against the new measure that would impose taxes on certain sugary drinks.
For Our Kids Act, or House Bill 1469, would tax distributors for selling sugary drinks, syrups and powders to retailers starting in July 2026.
Beverages would be taxed at 2 cents per ounce, and syrups and powders would be taxed at 2 cents per ounce of the beverage that can be produced, according to the instructions.
The rate of the Sugary Beverage Distributor tax would increase in 2027, and each following year based on the consumer price index. If there is a decline or no growth in the index, the tax rate would stay the same for that year.
Drinks sold to the government, sold for resale outside of the U.S., or sold to other distributors rather than retailers would be exempt from the tax.
Revenue for the state
Some of the revenue generated would support programs for students across the state.
The For Our Kids Act defines sugary drinks as non-alcoholic, carbonated, or non-carbonated beverages that contain added sugars or non-nutritive sweeteners, such as soda, some juices, and sports drinks. Natural fruit or vegetable juices, milk, infant formula and beverages for medical use would not be taxed under the bill.
"Excessive consumption of sweetened beverages, this is a really significant public health concern," said Del. Emily Shetty, the bill's sponsor.
Shetty explains that this bill is not only about public health but also about generating much-needed revenue for state programs.
"By imposing a tax on distributors, we can reduce the intake of these harmful drinks," Shetty said. "We can promote healthier choices and we can generate revenue."
Marylanders at an Annapolis gas station questioned if the money really would benefit the state's students. While they support the funds going to students, they aren't sure if the tax is needed, especially during an already challenging time.
"I really don't think they need to do that just think it's another way of taxing people, people are going to buy surgery, no matter what," said Annapolis resident Ken Walter.
Other states with similar taxes
Other municipalities, such as Philadelphia and Seattle, have a similar measure in place.
Philadelphia's tax is 1.5 cents per ounce, and for syrups and powders 1.5 cents per ounce of the final beverage product made.
Those for the bill argued that this is a steady revenue stream for these cities and that Maryland would be the first state to impose this, leading the way for others.
Against the sugary drink tax
Delegates on both sides of the aisle question Shetty and those testifying for the bill, asking them if this bill is truly effective and its projected impact on Marylanders.
Del. Jheanelle Wilkins, a Democrat from Montgomery County and Vice Chair of the committee was concerned that low-income communities would be hurt most by this bill.
"Very same community that we are working to help via the school lunch is, is also the same community that would probably bear the brunt of the cost and the tax," Wilkens said.
Del. Jason Buckel, a Republican from Allegany County, said while the bill targets the distributors to pay the tax, it would likely be passed on to Marylanders, who could simply take their business to neighboring states.
"I guarantee you your profit margin on the $3.49 bottle of soda is probably it's in the maybe the dimes," Buckel said. "That's just economics, they're going to have to pass the costs along."
"They need to find somewhere else to put that, but not on something that everybody likes. They do enough taxing," Edgewater resident William Brown said.
Impact on snowball stands
Others were concerned that snowball stands, a Maryland summer tradition, would be forced to close.
Del. Mike Griffith, a Republican who represents Cecil and Harford counties, said the syrup tax may eliminate this summer tradition.
"Well, snowball is syrup mixed with ice. So would this apply to our kids' Snowball stands?" Griffith questioned.
The syrup's distributor would be taxed.
Distributors and small businesses
People fighting against the bill also argue it will be bad for small businesses across the state, including grocery stores.
"This bill will take $500 million out of the grocery budgets of Marylanders. It will make it harder for grocery stores to continue to operate," said Marshall Klein, president of Klein's Family Markets.
It would also hurt the distributors, which includes a family-owned Pepsi bottling plant in Havre de Grace.
"If you pass this bill, we're looking at a 35% reduction in sales. That's going to translate to a 25% reduction of my workforce," Grant Connolly, owner of Pepsi-Cola Bottling Company of Havre de Grace.
Support programs for students
In the hearing on Thursday, Shetty explained the measure would generate $500 million per year.
At the end of each fiscal year, $189 million in revenue from the Sugary Beverage Distributor Tax would be allocated to the Healthy School Meals for All Fund and $50 million would go to the Child Care Scholarship Program.
The remaining revenue would go to the state's general fund.
The revenue sent to the Healthy School Meals fund would provide funding for the State Free Feeding Program and In-Classroom Breakfast program.
Both programs, created in a partnership between the Department of Education and county boards, would distribute funding to eligible non-public schools.
Health impacts of sugary drinks
The bill has gained support from the American Heart Association. In a statement, the organization said the bill would provide the revenue needed to address educational needs and food security while also curbing the health impacts of sugary drinks.
According to the American Heart Association, nearly two-thirds of youth consume at least one sugary drink per day, contributing to health risks like tooth decay, type 2 diabetes and heart disease.
"The For Our Kids Act represents a critical advancement in our mission to safeguard the health of children in Maryland," said cardiovascular nurse epidemiologist Yvonne Commodore-Mensah. "By taking strong action to curb the overconsumption of sugary drinks, while providing critical revenue to programs that benefit all families, we are making a powerful statement about prioritizing our children's well-being."
The organization said 40,000 deaths in the U.S. are linked to excessive consumption of sugary drinks.
Similar policies in the U.S. have led to more investments in public health and education, healthier choices for families and revenue that benefits children, the American Heart Association said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Trump news at a glance: President praises attacks on Iran as lawmakers divided on US involvement
Washington was in a flurry late on Saturday as Donald Trump announced that the US had completed strikes on three nuclear sites in Iran, directly joining Israel's effort to destroy the country's nuclear program. American politicians reacted to the news of the US bombing of nuclear targets in Iran with a mix of cheering support and instant condemnation, reflecting deep divisions in the country, as Washington grapples with yet another military intervention overseas. The strikes hit uranium enrichment sites at Fordow, Natanz, and Isfahan, Trump said. He warned Iran away from retaliating against US targets in the region, promising that further US strikes would be even more deadly. Here are the key stories at a glance: The US directly joined Israel's effort to destroy the country's nuclear program in a risky gambit to weaken a longtime foe amid Tehran's threat of reprisals that could spark a wider regional conflict. The strikes hit uranium enrichment sites at Fordow, Natanz, and Isfahan, Trump said. Later, Iran's atomic agency said that the country will carry on with its nuclear activities despite the US attacks on key facilities. Read the full story American politicians displayed a mixed reaction to the news of the US bombing of nuclear targets in Iran. Many democrat denounced the decision, while most Republicans praised the action. US Senate minority leader Chuck Schumer, a Democrat of New York, demanded of Senate majority leader and South Dakota Republican John Thune that he should immediately call a vote on the matter. Schumer said the US Congress must enforce the War Powers Act – intended as a check on the US president's power to devote the United States to armed conflict without the consent of the US Congress. Read the full story Mahmoud Khalil – the Palestinian rights activist, Columbia University graduate and legal permanent resident of the US who had been held by federal immigration authorities for more than three months – has been reunited with his wife and infant son. Read the full story The man charged in connection with the recent shootings of two Minnesota lawmakers and their spouses was a doomsday 'prepper' who instructed his family to 'prepare for war' as he tried to evade capture, according to new court filings. Read the full story Thousands of Afghans who fled to the US as the Taliban grabbed power again in Afghanistan are in mortal dread of being deported back to danger in the coming weeks amid the Trump administration's anti-immigration crackdown. Read the full story Texas will require all public school classrooms to display the Ten Commandments under a new law that will make the state the nation's largest to attempt to impose such a mandate. Pakistan nominated Donald Trump for Nobel peace prize, for his work in helping to resolve the recent conflict between India and Pakistan. Federal health officials are seeking to launch a 'bold, edgy' public service campaign to warn Americans of the dangers of ultra-processed foods in social media, transit ads, billboards and even text messages. And they potentially stand to profit off the results. Catching up? Here's what happened on
Yahoo
an hour ago
- Yahoo
Rep. Jim Himes warns Iran strike could lead to ‘dead soldiers and sailors'
Connecticut Rep. Jim Himes, the ranking member on the House Intelligence Committee, warned on Sunday that President Donald Trump's decision to strike Iran could lead to a 'worst-case scenario' that draws the U.S. into another prolonged conflict in the Middle East. Himes, a Democrat, told host Jonathan Karl on ABC's 'This Week' the Iran strike is a 'massive, massive gamble' that could embroil the nation in an overseas conflict similar to previous U.S. military operations in Iraq, Afghanistan and Libya. 'We've seen this movie before,' Himes said, referencing the ascension of the Taliban in Afghanistan following the U.S. withdrawal in 2021 after maintaining a military presence in the country for 20 years. Himes outlined the 'worst-case scenario' as the possibility that Iran suffered minimal damage to its nuclear facilities and strikes back at U.S. military personnel leading to 'dead soldiers and sailors in the region.' On Sunday, Chair of the Joint Chiefs of Staff Gen. Dan Caine said the U.S. inflicted 'severe damage' on the three Iranian nuclear sites it targeted, but added it was too soon to determine whether Iran still possessed nuclear capabilities. When asked if it's possible that Trump's strike on Iran would result in a best-case scenario, Himes conceded there is 'some chance' of a positive outcome. 'But if you look at the history — and again, all we have is history to go on, if you look at the history of our military involvements in the region, they almost never end with the best-case scenario,' Himes said. 'In fact, they usually end in something approximating the worst-case scenario.' Himes also expressed concern that the strike on Iran could destabilize other nations in the region, inciting further danger to U.S. allies. He highlighted Jordan as an example, citing popular unrest in the country. 'It's not inconceivable that his people may decide, 'Hey, we've had it with you being allied with the Israelis and the United States,'' he said. 'And now we have chaos in Jordan.' Himes reiterated that it may take 'months or years' to determine whether Trump made the right decision in striking Iran, but said it would be 'crazy' to expect the best-case scenario to play out. 'Looking at history, you would be sort of crazy to put all your chips on the best outcome anytime we enter into military conflict in the Middle East,' he said.
Yahoo
an hour ago
- Yahoo
Republican representative's ectopic pregnancy clashes with Florida abortion law
A Florida Republican congresswoman is blaming fearmongering on the left for the reluctance of hospital staff to give her the drugs she needed to end an ectopic pregnancy that threatened her life. Kat Cammack went to the emergency room in May 2024 where it was estimated she was five weeks into an ectopic pregnancy, there was no heartbeat and her life was at risk. Doctors determined she needed a shot of methotrexate to help expel her pregnancy but since Florida's six week abortion ban had just taken effect medical staff were worried about losing their licenses or going to jail if they did. Cammack looked up the state law on her phone to show staff and even attempted to contact the governor's office. Hours later, doctors eventually agreed to give her the medication. Related: Women and men diverge more than ever on support for abortion rights, poll shows But Cammack, who opposes abortion and co-chairs the House pro-life caucus, told the Wall Street Journal she blames messaging from pro-abortion groups for delaying her treatment, which is not banned under Florida's restrictive statutes, who have created fear of criminal charges. Over a year later and once again pregnant and due to give birth soon, Cammack says the politics of the incident have stuck with her. 'It was absolute fearmongering at its worst,' Cammack told the publication, but acknowledged that abortion rights groups might interpret her experience differently and blame Republican-led, restrictive anti-abortion laws for the issue. 'There will be some comments like, 'Well, thank God we have abortion services,' even though what I went through wasn't an abortion,' she told the outlet. Florida's strict abortion ban, which took effect on 1 May 2024, makes abortions illegal after six weeks, when most people aren't even aware yet that they are pregnant. After months in which medical staff were concerned that the law's wording made emergency procedures illegal, the state's healthcare agency issued official guidance to 'address misinformation' on permitting an abortion in instances where the pregnant person's life and health are in danger. Cammack said she hoped that going public with her experience would help opposing political groups find common ground. Related: Democrats introduce bill that aims to protect reproductive health data 'I would stand with any woman – Republican or Democrat – and fight for them to be able to get care in a situation where they are experiencing a miscarriage and an ectopic' pregnancy, she said. Abortion rights activists say the law created problems. Florida regulators say ectopic pregnancies aren't abortions and are exempt from restrictions, but Molly Duane, with the Center for Reproductive Rights, told the Wall Street Journal the law doesn't define ectopic pregnancy, which can be difficult to diagnose. Alison Haddock, the president of the American College of Emergency Physicians, told the outlet care in early pregnancy is a 'medically complicated space' and that doctors in abortion-restricted states worry 'whether their clinical judgment will stand should there be any prosecution'.
