Saturday, July 26, 2014         

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Senate committee rejects Abercrombie-proposed soda tax

By Derrick DePledge


The state Senate Health Committee advanced a bill today that would increase the tax on alcoholic beverages but removed a provision that would have created a new soda tax.

The alcohol tax, which has not been increased since 1998, would rise by 50 percent under the bill and would generate $23.4 million a year to help with the state's budget deficit and for programs to discourage alcohol abuse.

With the tax on soda and other sugary drinks -- which would have generated about $44 million a year -- deleted from the bill, it is unlikely such a proposal will pass this session. The state House has yet to hear the idea.

Gov. Neil Abercrombie proposed raising alcohol and soda taxes to promote healthy lifestyles and to bring in new revenue to help with a projected two-year budget deficit of $700 million.

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