Report: Senate considering soda tax

WASHINGTON, May 12 (UPI) -- The U.S. Senate is considering levying a tax on sugary soft drinks to help pay for the overhaul of the nation's healthcare system, political sources say.

Unnamed Senate aides told Tuesday's Wall Street Journal key lawmakers are weighing the idea behind closed doors, which the Congressional Budget Office has estimated could yield as much as $24 billion in the next four years to help pay for an expansion of health insurance to all Americans.

The measure is reportedly prompting protests from the U.S. beverage industry and could spark a backlash from consumers who would be forced to pay several more cents per 12-ounce bottle or can of soda, fruit drinks, energy drinks, sports drinks and ready-to-drink teas.

Michael Jacobson, executive director of the Center for Science in the Public Interest, told the Journal the tax would be fair because such drinks drive up health costs for everyone by contributing to obesity, diabetes and other illnesses.

"Taxes are not going to teach our children how to have a healthy lifestyle," countered Susan Neely, president of the American Beverage Association, saying it instead backs efforts to limit sugary beverage consumption in schools.