To Tax or Not to Tax?

Sofia Giaritelli

In Santa Fe, a law has been proposed that, if passed, will place a 2-cents-per-ounce tax on soda and other sweetened beverages. The revenue raised from this tax would be used to fund early childhood education, something that is an unmet need in Santa Fe. City residents will vote on the measure on May 2.

People who support the soda-tax claim that this is the morally superior choice because it encourages people to drink healthier beverages and supports pre-kindergarten education. Those who oppose it argue that it is an unfair burden on consumers. For many people, this election is more of a concern about unsteady government funding for education.

There is also an underlying question about whether or not this tax will raise enough money to meet enrollment demands. Still, supporters argue that the need for public pre-K in Santa Fe needs to be addressed and supported somehow.

Many pre-kindergarten aged kids come from low-income families and require some form of childcare, according to an American Community survey done in 2015 by the U.S. Census Bureau. The survey showed that, in Santa Fe, 65 percent of 3- to 4-year- olds enrolled in pre-K and 59 percent of un-enrolled children live in families where both parents work; 40 percent of un-enrolled preschoolers are from single-parent families; and approximately three-quarters of un-enrolled preschoolers are Hispanic.

Even though some of these un-enrolled pre-K families may have higher incomes that don’t qualify them for Head Start or state subsidized childcare, it can be extremely difficult to pay for childcare in pricey Santa Fe. The high cost prevents many families from sending their children to preschool.

The soda tax is aimed at providing public funds for pre-K programs that are more convenient, high quality, and affordable for families with un-enrolled 3- and 4-year-olds. All 3- and 4-year-old children living within the boundaries of the city of Santa Fe would qualify for these services.

Mayor Gonzales calls the proposed tax “both a moral imperative and a sound public investment,” according to ABC News, citing evidence that children who attend pre-school and enter kindergarten prepared are less likely to fall behind, less likely to drop out, and less likely to get involved in crime.

The 2 cents-per-ounce tax would apply not only to sodas but also sports drinks such as Gatorade, many caffeinated energy drinks, sweetened teas, lemonade and some coffee drinks that contain sweetened syrups.

According to “U.S. News and World Report,” the soda industry claims that prices will climb by $1.36 for a two-liter soda and $2.88 for a 12-pack of canned soda. However, Gonzales says the proposal includes an incentive for the beverage industry to come up with healthier products by exempting lightly sweetened beverages, or those containing 10 grams of sugar or less per eight-ounce serving.

According to an independent study done by the City of Santa Fe, this tax on sugary beverages is estimated to raise approximately $7.7 million in the first year, create 196 jobs, and serve 966 previously un-enrolled preschoolers, 72 percent of whom are Hispanic.

Michael Bloomberg, the former mayor of New York City, has invested $1.1 million in the pre-K political committee in Santa Fe to support this law. In an attempt to defeat this measure, the American Beverage Association has contributed nearly $1 million in lobbying for the soda industry.

Local restaurant owners are also opposed to the tax, saying it will do away with free refills and cheap soda drinks for customers and staff.

“In my opinion, soda shouldn’t be taxed,” Ellis Potkin, a Santa Fe High sophomore said. “I believe that funding for pre-K should come from somewhere else. Food is already so expensive. I mean I care about the preschoolers, but the funding shouldn’t come from the soda tax.”

“I think that the soda tax is a great idea” disagreed sophomore Vivienne Harris. “People who buy soda are choosing to drink something unhealthy. This tax will not only stop these unhealthy habits, but the money will go to a good cause.”

According to the National Institutes of Health, people who consume sugary drinks regularly — one to two cans a day or more — have a 26 percent greater risk of developing Type 2 diabetes than people who rarely have such drinks. The rationale for the tax is that by raising the price of soda, fewer people will buy it, reducing obesity and diabetes in Santa Fe.

“This soda tax seems like a great idea that will be useful in the future,” said junior Cassie Hoskisson.