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Updated 12/17/2008 06:09 AM

Governor proposes major tax hike on soda, beer

By: Steve Ference

Governor proposes major tax hike on soda, beer
ALBANY, N.Y. -- "I like the bubbles," said Albany resident Bill Rosch.

If you too like drinking soda, then try this on for size. The Governor has proposed an "obesity tax," which would charge 18 percent sales tax for sodas, on top of the eight percent already collected.

Mickey McMullin who had just come from the store, told us, "It's crazy. Why would it just be sugared soda?"

Here's the skinny on the plan. Any soda, except diet, would be taxed at the higher rate. Drinks containing less than 70 percent fruit juice could also be taxed.

"The biggest thing is us taking the brunt of the customer irritation or frustration. With more tax, we get to see it at our level and deal with it," said convenience store owner Christian King.

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King said not only will he hear it from customers who want the soda tax canned, but says it could be a real pain to have to differentiate what's taxed and what's not if the extra cash is collected at the point of sale.

"Let's face it, people who want their Coke or Sprite, they're going to buy it anyway," King said.

But not everyone is against the idea.

John O'Leary, who also just finished grocery shopping, said, "I never drink it, so it doesn't bother me at all."

Then again, it's not only soda. The beer tax would more than double. Malt beverages would be taxed at the higher liquor rate. And cigars would cost an extra 50 cents each.

"There's a lot for convenience store customers not to like," said New York Association of Convenience Stores President James Calvin.

Many critics are wondering where the line is. Does it simply end with soda or could the taxing continue with things like cake or even cookies or coffee?

"One of our concerns is about what happens next," Calvin said. "What's the next product that contains sugar that would be taxed at an exorbitant level?"

Trying to fill the budget gap, the governor is hoping people buy the idea that the tax is good for their health. The money raised would supposedly go to a health fund to fight diabetes and other obesity-related diseases.

Though for critics, it's a sweet irony that the tax on drinks was proposed 235 years to the day after the Boston Tea Party took place.

"New York is already taxed the highest in the nation, right? It's breaking us. So no, enough is enough," McMullin said.

All of this, leaving anyone who wants a soda, whether skinny or obese, to deal with the weight of more taxes and a thinner wallet if the plan is passed.