HR0030 101ST GENERAL ASSEMBLY

HR0030 LRB101 04028 ALS 49036 r

HOUSE RESOLUTION

WHEREAS, A proposed tax on sugar-sweetened beverages to generate revenue to balance the State's budget has been contemplated by some policymakers; and

WHEREAS, Adding an additional tax on sugar-sweetened beverages will raise grocery costs for hardworking Illinois families and kill Illinois jobs; and

WHEREAS, Studies have concluded that any obesity-related benefit of decreased sugar-sweetened beverage consumption that comes from a tax is negligible or offset by individual circumstances and environments; for instance, West Virginia has had a sugar-sweetened beverage tax since 1951 and has the second highest obesity rate in the United States at 35.6%; since 1990, the diabetes rate in West Virginia has more than doubled from 6.7% to 14.5%; Arkansas has had a sugar-sweetened beverage tax since 1992; during this time, obesity rates have doubled from 17% to 34.5%, ranking it the sixth-highest rate in the United States; additionally, the diabetes rate has doubled from 5.8% to 12.6%; and

WHEREAS, If the sugar-sweetened beverage tax will reduce consumption as the advocates claim, then it will in turn negatively impact bottlers, manufacturers, agricultural suppliers, distributors, retailers, and labor; with more than 100,000 Illinois residents directly and indirectly employed by the beverage industry, the vast beverage industry could face layoffs if the sugar-sweetened beverage tax is signed into law; and

WHEREAS, Beverage-related jobs create $654 million in wages in Illinois, with an additional $702 million in wages for occupations that rely on beverage sales; passing this soda beverage tax would decrease sales, resulting in a decrease in local and State revenue at a time when governments across Illinois are facing declining revenue; and

WHEREAS, A soda tax will provide additional incentive to the two-thirds of Illinois residents who live within a 40-minute drive of a neighboring state to shop in that neighboring state and therefore further weaken tax receipts and cripple local businesses; specifically, Illinois retailers that border other states will be put at an even greater competitive disadvantage with out-of-state retailers; and

WHEREAS, A recent proposal would impose an unreasonable new State penny-per-ounce tax that would result in 68 cents in new taxes on a typical 99-cent, two-liter bottle of soda; and

WHEREAS, An additional tax on sugar-sweetened beverages goes against the pro-business, pro-jobs, pro-growth policies that should be under careful consideration as Illinois seeks to regain sound financial footing; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we fully support our hardworking citizens and oppose all efforts, on the State or local level, to impose new taxes on beverages and food; and be it further

RESOLVED, That we state our firm opposition to any additional taxes on sugar-sweetened beverages.