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The Associated Press February 17, 2010, 5:30PM ET

Proposed soda tax falls flat in Mississippi House

A potential soda tax is losing its fizz at the Mississippi Capitol.

Democratic Rep. John Mayo of Clarksdale proposed a tax of 2 cents per ounce for sweetened bottled or canned drinks, saying Mississippi needs money to battle one of the highest obesity rates in the nation.

House Ways and Means Chairman Percy Watson, D-Hattiesburg, said he doesn't expect to bring Mayo's bill up for a vote, so the issue will die this session. Still, Watson held a nearly two-hour hearing Wednesday to give supporters and opponents a chance to speak.

Health advocates said a tax could deter some people from buying sugary drinks. Business groups said the tax would hurt the economy and would unfairly target one product in a state where people enjoy fried chicken and other fatty foods.

Bill Brown, president of Ridgeland-based Brown Bottling Group Inc., said his company employs 425 people in Mississippi, with a payroll of about $30 million a year. In November, it opened a $50 million production facility in Hattiesburg to bottle about 350,000 cases of Pepsi and Dr Pepper products a week. The Hattiesburg plant has 60 workers.

"I would hate like heck to go tell those employees now their jobs are being eliminated because of a tax in the state of Mississippi," Brown said.

Andrew Hysall, associate vice president of advocacy and public policy for the Washington-based Campaign for Healthy Kids, said sweetened drinks are adding to the problem of childhood obesity. He said a soda tax, alone, would not solve the problem, but parents might consider spending money on nutritious foods or drinks if soft drinks are more expensive.

"Common sense, as well as science, tells that the consumption of empty calories leads to weight gain," Hysall said.

Republican Gov. Haley Barbour has been saying for weeks that he would veto a soda tax if it reaches his desk. Pushing the bill through the House and Senate would be difficult because it would require a three-fifths vote in each chamber, and many lawmakers say they're against increasing taxes on specific products.

Mayo said he was not surprised his bill will die, but he wanted to create a discussion about fighting obesity, which adds millions of dollars a year to Mississippi's Medicaid tab. He challenged opponents of his bill to come up with a plan.

"If not the soda tax, then what?" Mayo said. "What are you putting forth?"


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