New York State proposes ‘fat’ tax

Currently bill number A02455 is before the New York Assembly. This bill, dubbed the ‘fat tax’ would add an extra tax to the sales of certain foods, beverages, video games, movies and video game equipment. This bill that, if approved, would implement additional taxes consumers would have to pay on specific products.

The first additional tax is a one-quarter of one percent sales tax on food and beverages (bottled water not included), sale and rental of video and computer games, and video game equipment and the sale and rental of video and DVD movies.

The second additional tax would add a one percent sales tax to admission to movie theaters and food and drink that are defined as sweets or snacks according to the US Department of Agriculture’s National Nutrient Database for Standard Reference.

This bill also prevents corporations from deducting from their income their New York share of expenditures for advertising food, video games and equipment, and movies and videos or DVDs, on television shows primarily watched by children under eighteen.

The reason for this bill is that the country is facing a crisis. Childhood obesity has doubled in the last thirty years. Related to the rise in childhood obesity are the health issues like the increased number of children diagnosed with Type 2 diabetes. The foods, beverages and entertainment avenues are linked to childhood obesity.

Numerous factors have contributed to the rise in childhood obesity, but almost all experts agree that the primary reasons are increased consumption of larger quantities of high calorie goods, snacks and sugar sweetened beverages such as soda and other drinks, and lack of physical activity as vigorous play is replaced by sedentary activities such as watching more television, movies and videos and playing video games.

This revenue for the tax would raise revenue for the New York State Childhood Obesity Prevention Program. The program would create and monitor childhood obesity prevention programs designed to increase physical activity and improve nutrition.

This is an interesting bill. On one side it is true that children are less active and are eating higher calorie, higher fat foods and those are some of the factors that contribute to the higher numbers of obese children we are currently seeing. On the other side should the responsibility really reside with the state to educate the public on the dangers of unhealthy lifestyle habits? Ultimately the taxpayers are the ones funding these educational programs and what proof is there that the programs will be effective and therefore worth the extra taxes? You can lead a child outside but you can’t make them be more active if they don’t want to be.

It will be interesting to see if this bill passes and what the future effects will be. Once one state passes a bill that allows them to add taxes onto certain foods and entertainment other states may follow suit. With many states running on a deficit this could turn into a profit creating bill for others even though New York is not presenting it as such.

Cheerios is a drug....says the FDA

I recently wrote an article for my other online persona (that of the Baltimore Running Fitness blogger for Examiner.com) regarding the recent letter the FDA sent to General Mills company regarding the marketing of Cheerios (click here to read that article, it is much less opinionated). The FDA, based on how General Mills is marketing Cheerios has determined that Cheerios is potentially a drug. Not only a drug, but a new drug and must under go testing for approval to be consumed by people.

Confused yet? So was I until I read the FDA's letter (to read the letter from the FDA to General Mills click here). What I read was rather interesting. Here is my take on the letter:

What the FDA is telling General Mills that due to how, where on the box, the font size and color that General Mills is not following federal regulations regarding health claims. Health claims are allowed in marketing food products but companies still have to abide by certain guidelines. Apparently General Mills has claims that Cheerios can lower cholesterol in other places on the box, making it separate from the health claim. There is also a study that was done, I am assuming by General Mills, to back up their claim that the consumption of Cheerios can lower cholesterol. All of these things, according to the FDA, is why the marketing makes Cheerios appear to be like a drug. It isn't that they really think that Cheerios is a drug. They are simply making a point regarding the marketing and if a consumer really relies on Cheerios to lower their cholesterol enough so that they don't need to seek medical attention and it doesn't, a life could be lost.

Now, maybe I am not a normal consumer but if I read something on a box of cereal I am not necessarily going to believe it. On the other hand if I buy cereal because I want the toy and the toy isn't in the box then there will be retribution. But I digress. Back to Cheerios. I also read the fine print on most things and Cheerios has a disclaimer on their box and in their commercials as well that if Cheerios is consumed along with a healthy diet and exercise that it has been shown to decrease cholesterol. Not only that most consumers aren't going to realize what the regulations are and think that just because a couple of statements are seperate from the authorized health claim that it means something different. To us, the average consumer, it doesn't.

I like the fact that the government is looking out for us. This I think is a bit much. Cheerios has been using the exact same marketing for years and now suddenly it is an issue. I am always a bit skeptical when there is an issue that "suddenly" appears.

Check back either here or at my page with Examiner.com as I keep you updated on this interesting (at least to me) issue.