Voices in Healthcare

Massachusetts has a very real - and achievable - opportunity to improve the overall health of our residents and lower healthcare costs at the same time, and we should move forward with this effort as soon as possible. With today's intense focus on the costs of healthcare, and the pressures being exerted on providers to bring those costs down, MHA and our member hospitals are working hard on the downstream side of the equation and making real progress. But the issue needs to be addressed on the prevention side as well, and we should start with one really obvious tactic - ending the state sales tax exemption on sweetened beverages and candy.

Numerous scientific studies have shown that consumption of soft drinks is associated with poor diet, increasing rates of obesity and risk for diabetes. One study found that for children, each extra can or glass of sugar-sweetened beverage consumed per day increases their chance of becoming obese by 60 percent.

Massachusetts state law exempts certain food products from the sales tax. This includes essential items like fruits, vegetables and milk, but it also currently includes soft drinks, sugar and sugar products, and candies. In the last decade, the percentage of calories consumed by 2- to-8-year-olds from sweetened beverages has increased, while the percentage from milk has decreased.

What's wrong with this picture?

Over 40 states now have sales tax on soft drinks and Massachusetts remains one of only a handful of states that does not tax these items at all. HB1697 eliminates the sales tax exemption for candy, confectionary and soft drinks. The Massachusetts Department of Revenue estimates that lifting the sales tax exemption for soft drinks and candy could generate $52 million in annual revenue that could be used for proven public health prevention efforts. A recent poll showed 69 percent of Massachusetts residents would support ending the sales tax exemption on sweetened beverages and candy if the revenues generated went to local schools to help combat childhood obesity.

Opponents of HB1697argue that it amounts to a penalty tax on sugary drinks and candy, but this argument misses the mark. The current exemption is actually a taxpayer subsidy of items that have little nutritional value and have been linked to the growing epidemic of overweight and obesity.

This week MHA joined our fellow members of the Healthy People/Healthy Economy Coalition at the State House to call for an end to the state sales tax exemption for soft drinks and candy. To further educate the public on the dangers of consuming large quantities of sweetened beverages, pediatricians will be handing out "prescriptions" to patients and their parents that describe the negative health effects of consuming too many sugary drinks. MHA will be supporting this education campaign as well.

If we want to lower healthcare costs, we need to support prevention efforts along with payment and care delivery reform. There are a number of ways to support improvements to our residents' public health - Ending what amounts to our Commonwealth’s taxpayer subsidy on sugary beverages and candy would be a concrete step in the right direction.