© 2024 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations
TECHNOTE: Friday Apr 26 Update - TV off the air intermittently

Soda pop: to tax or not to tax

By Laura Weber, Michigan Public Radio Network

EAST LANSING, MI – As the state struggles to balance its budget with declining revenues, old arguments are revisited - such as whether to extend the state's sales tax to soda pop.

Bill Lobenherz is with the Michigan Soft Drink Association. He says the Michigan Constitution does not allow the state to tax soda because soft drinks are food.

"And even if the constitution didn't say it couldn't be done, it's just extremely, extremely bad tax policy," he says. "Good tax policy generally says one, the tax should be constructive and two, it should be equitable. In this case it would be neither."

Lobenherz says a tax on soda would affect sales and hurt bottling businesses in the state. But groups that support a soda tax say the drinks are not nutritionally valuable enough to be considered a food product.

Lobenherz appeared on public television's "Off The Record."

Journalism at this station is made possible by donors who value local reporting. Donate today to keep stories like this one coming. It is thanks to your generosity that we can keep this content free and accessible for everyone. Thanks!