Illinois soda tax could cut health costs, raise $561 million in revenue annually

A penny-per-ounce state tax on sugar-sweetened beverages could raise $561 million a year in new revenue for Illinois, while also saving millions in health care costs associated with obesity and diabetes, according to a new study released Tuesday by the Harvard T.H. Chan School of Public Health.

Such a tax would likely would face tremendous opposition from Big Soda, particularly given the recently passed penny-per-ounce tax on both sugar- and artificially-sweetened beverages in Cook County that goes into effect July 1. The Harvard study's revenue projection factors in an expected drop-off in sales once the county's tax kicks in.

A proposal to tax sugary drinks in Illinois was included in a Senate budget plan earlier this year but was stripped out amid opposition from business groups. While the effort has stalled, it's possible the legislation could be revived as lawmakers turn their focus to the ongoing budget impasse over the next several weeks.

"If you're going to make a policy change, you want the best value for the money. And boy, a sugar-sweetened beverage tax is a really good value for the money," said Steven Gortmaker, lead researcher on the study and professor in the Department of Social and Behavioral Sciences at the Harvard T.H. Chan School of Public Health.

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