February 14, 2011

Testimony in opposition to SB 1179 that establishes a tax on the sale of sugar-sweetened beverages in the State.

Chair Green, Vice Chair Nishihara, and Members of the Committee on Health

The Hawaii Restaurant Association representing over 3,500 locations directly employing over 82,000 dedicated people here in the State of Hawaii respectfully opposes SB 1179 that establishes a tax on the sale of sugar-sweetened beverages.

This bill unfairly creates additional taxes, major reporting requirements and bureaucracy without really addressing the childhood obesity issue.

Various scientific studies, if childhood obesity can be attributed to sugared drinks, are maybe 7 to 15 percent. Therefore the 85 to 93 percent of the causes of obesity have not been addressed. Obesity is a direct result of high calorie intake and low calorie output. We still have no PE in our public schools. If we follow the intent of this bill, we will also need to have special taxes for TV, Video Games, Smart Phones, IPods, and everything else that gets in the way of not exercising or burning calories.

According to a national poll conducted by Rasmussen last year about the soda tax, almost 80 percent of Americans were opposed to this idea. If you listened to the calls into the radio stations because of SB 1289 this past week, Hawaii is also opposed to this idea.

This is just another regressive bill that will hit small business, low and middle income households disproportionally. Singling out sweet beverages is discriminatory but ignores other high calorie products such as candies and snacks. Will special taxes become standard practice in lieu of promoting and rewarding personal responsibility?

The HRA respectfully urges your committee to not pass SB 1179.

Very truly yours,

The Hawaii Restaurant Association

Victor Lim / Bryan P. Andaya / Tom Jones – Government Relations Co-chairs