Do you drink soda or any other sugary drink

What if the cost of your favorite sugary treat went up by a few cents? Would this alter your buying habits?

I read last week that one strategy being considered to fund Obama's health care expansion is to tax soda and other sweetened drinks. As reported in the Wall Street Journal, a 3 cent hike/tax for any super sweet beverage could net $24 billion -- a literal drop in the estimated $1.2 trillion bucket needed for Obama's plan.

Arguing for the tax:
Proponents claim that higher prices will reduce consumption and therefore improve American's health. Hmmm, if that's true, there goes some of that estimated $24 billion. That's okay because healthier Americans mean lower health care costs over the long-haul.

Another problem, recent studies have also linked DIET soda to obesity, diabetes and other health problems!

Against any tax:
Will the beverage lobby allow this to happen? Unlikely. A spokesperson for the American Beverage Association argues that limiting availability in schools is the best way to improve the health of children...NOT increase the price. Sounds like an admission to me: Soda is bad for kids. No argument there.

And how will government decide which drinks to tax? Athletic-Minded Traveler recently posted about the amount of sugar in Orange Juice. And while OJ's sugars may occur naturally, it is still sugar. So should OJ be taxed?

Athletic-Minded Traveler's Take
For those who love their Coke, a few cents won't change a thing. People will keep buying. Just look at coffee pricing. Only recently have prices actually come down. Previous price increases did little to dampen demand. As a drinker of Hansen's Calorie-Free Soda, I'm in the clear. But if the price did go up, I'd still buy it.

As to the debate on improving the health of our children, the best thing anyone can do is set the right example. Kids learn from their parents. If mom/dad chow down on cheetos and guzzle sugary drinks, so will the kids. Studies have proven this parent to kid eating habit link. Helping parents eat well is a necessary first step to help combat childhood obesity.

On a positive note, it is nice to see funding strategies that are directly related to the policy program. In this case leaning heavy on a known health risk (soda consumption) to fund healthcare "improvements". However, the jury is still WAY out on what these improvements may be.