Drink Taxes to support health care
Recently there was an enacted law which levies a new tax on wine, beer and soda. This new tax is to be used to help both expand and pay for Maines DirigoChoice health insurance programs. Though if the Referendum passes on the 4th of November this could be overturned.
Opponents say that those living in Maine will only be paying four cents more for a soda and one penny more for a glass of wine. As for those who are supporters say untimate costs will be alot higher. They say that Maine should not have their drinks taxed to pay for these health insurance programs along with the expansion of them.
Through a veto people of Maine are getting the opportunity to voice their own opinions on these taxes.
Beverage companies such as Anheuser-Bush as well as Coca-Cola and Pepsi have donated the amount of 1.5 million dollars to overturn the new tax, these donations were made between July and September of this year.
The nation attention which Maine is getting is because, Maines laws has a great deal more significance beyond their state boarders. This was according to Michael Jacobson the director of the think tank center for Science in the Public Intrest in Washington D.C. Across the Nation there are only around twelve states which tax their sodas, though there are none known who use the revenue from these taxes to support health programs. It is believed that Maine is being targeted due to the signifiance of their laws, it is also said that Maine could be a practice in case another state or even Congress attempts to levy a tax on soda, this will prepare all for any arguments which may arise.
Maine Medical Association Officals have said that because this referendum is framed as a tax matter it will lose, though if it were framed as a health care issue it would pass. Physicians say this is a win win tax issue, according to Maine Medical Association Vice President Gordon Smith. Gordon says that along with tobacco, these products should be taxed because they help to contribute to diabetes, obesity and the high cost of health care. Though this is not what those who are trying to overtun the tax are thinking.
The political action committee called Fed Up With Taxes gathered signatures to get on the ballot Question 1, and have also funded a study which shows that this tax would have a completely different impact than what was expected. The study shows that 52 gallons of taxable drinks are drank each year in Maine. This is a much higher figure then the state had used. With these new figures Mainers would pay around 40 million dollars in additional taxes. These higher figures mean that there would most likely be a reduction in sales as well as around 400 part time jobs lost.
I guess only time will tell on this issue as to what is going to happen.
|