Sugar-Sweetened Beverages Tax Act of 2014 or the SWEET Act - Amends the Internal Revenue Code to impose an excise tax on the sale or transfer of any specified sugar-sweetened beverage product by the manufacturer, producer, or importer thereof. Establishes the rate of such tax as 1cent per 4.2 grams of caloric sweetener contained in such product.
Transfers revenues from such tax to the Prevention and Public Health Fund for the sole purpose of funding programs and research to reduce the human and economic costs of diabetes, obesity, dental caries, and other diet-related health conditions in priority populations.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5279 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5279
To amend the Internal Revenue Code of 1986 to impose an excise tax on
sugar-sweetened beverages, to dedicate the revenues from such tax to
the prevention, treatment, and research of diet-related health
conditions in priority populations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2014
Ms. DeLauro (for herself, Mr. Moran, and Ms. Norton) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Energy and Commerce, for a period
to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose an excise tax on
sugar-sweetened beverages, to dedicate the revenues from such tax to
the prevention, treatment, and research of diet-related health
conditions in priority populations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sugar-Sweetened Beverages Tax Act of
2014'' or as the ``SWEET Act''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that:
(1) The prevalence of obesity in the United States has
increased dramatically over the past 30 years. From the 1960s
to the late 1970s, the prevalence was relatively constant, with
about 15 percent of the population classified as obese. After
the 1970s, these rates began to climb. According to the Centers
for Disease Control and Prevention, by 2012 more than one-third
(34.9 percent) of adults and 17 percent of youth in the United
States were obese. Although no group has escaped the epidemic,
low income people and communities of color are
disproportionately affected. In 2012, nearly half (47.8
percent) of African-American adults were obese and 42.5 percent
of Hispanic adults were obese.
(2) The percentage of children who are overweight has also
increased dramatically in recent decades. After being
relatively constant from the 1960s to the 1970s, the prevalence
of overweight children has more than tripled among children
between 6 and 11 years of age and nearly quadrupled among those
between 12 and 19 years of age. Despite significant public and
private investment, childhood obesity rates remain high.
Overall, obesity among our Nation's young people, aged 2-19
years, has not changed significantly since 2004 and remains at
about 17 percent--equaling 12.5 million children and
adolescents.
(3) There are significant racial and age disparities in
obesity prevalence among children and adolescents. In 2011-
2012, obesity prevalence was higher among Hispanics (22.4
percent) and non-Hispanic black youth (20.2 percent) than non-
Hispanic white youth (14.1 percent). The prevalence of obesity
was lower in non-Hispanic Asian youth (8.6 percent) than in
youth who were non-Hispanic white, non-Hispanic black, or
Hispanic.
(4) Overweight and obesity are responsible for an estimated
$190 billion in health care costs nationally, or approximately
5 to 10 percent of all medical spending--with over 20 percent
of these costs paid publicly through the Medicare and Medicaid
programs. The medical costs for people who are obese are
dramatically higher ($2,741 per year) than those of normal
weight.
(5) The obesity epidemic is of particular concern because
obesity increases the risk of diabetes, heart disease, certain
types of cancer, arthritis, asthma, and breathing problems.
Depending on their level of obesity, from 60 percent to over 80
percent of obese adults have type 2 diabetes, high blood
cholesterol, high blood pressure, or other related conditions.
According to the CDC, nearly 60 percent of overweight children
have at least one risk factor for heart disease.
(6) Overweight and obesity increase the risk for several
types of common cancers, including postmenopausal breast,
colorectal, endometrial, kidney, pancreatic, esophageal, and
gall bladder cancer. Up to one in four of all cancer cases and
one in three cancer deaths are due to poor nutrition, physical
inactivity, and overweight and obesity.
(7) There is overwhelming evidence of the link between the
consumption of sugar-sweetened beverages, such as non-diet soft
drinks, energy drinks, sweet teas, and sports drinks, and
obesity and diabetes. Adults who drink one sugar-sweetened
beverage or more per day are 27 percent more likely to be
overweight or obese, regardless of income or ethnicity. After
six months, daily consumption of one liter of sugar-sweetened
beverages increases fat deposits in the liver by 150 percent,
which directly contributes to both diabetes and heart disease.
(8) According to nutrition experts, sugar-sweetened
beverages, such as soft drinks, energy drinks, sweet teas, and
sport drinks, offer little or no nutritional value, but massive
quantities of added sugars. A 20-ounce bottle of soda contains
about 16 teaspoons of sugars. Yet, the American Heart
Association recommends that Americans consume no more than six
to nine teaspoons of sugar per day.
(9) The 2010 Dietary Guidelines stated that almost one-half
of the added sugars Americans consume come from sugar-sweetened
beverages, with the average American drinking nearly 45 gallons
of sugar-sweetened beverages a year, the equivalent of 39
pounds of extra sugar every year.
(10) Though sugar-sweetened beverage consumption is
declining modestly as people learn about their harmful health
effects, Americans are still consuming twice as much of these
products as they did in the 1970s. Five percent of Americans
consume at least 567 kcal from sugar drinks on any given day--
equal to more than four 12-ounce cans of soft drink. According
to the National Center for Health Statistics, one-third of
calories from added sugars (33 percent) consumed in the United
States were from beverages. In children and adolescents, 40
percent of the calories from added sugars came from beverages.
Children and adolescents consume 10 to 15 percent of their
total daily caloric intake from sugar-sweetened beverages.
(11) In a study of more than 50,000 female nurses, women
who increased their sugar-sweetened beverage consumption from
no more than one per week to at least one per day gained an
average of 10 pounds over four years. Research also shows a
significant link between sugar-sweetened beverage consumption
and weight gain in children. In a randomized double-blind
controlled trial of roughly 640 children, those who were given
one 8-ounce serving sugar-sweetened beverage a day gained more
weight and body fat over 1\1/2\ years than those who got one 8-
ounce serving of a sugar-free beverage.
(12) Sugar-sweetened beverages are a unique contributor to
excess caloric consumption. A large body of research shows that
calories from sugar-sweetened beverages do not satisfy hunger
the way calories from solid food or fat or protein-containing
beverages such as those containing milk and plant-based
proteins. As a result, sugar-sweetened beverages tend to add to
the calories people consume rather than replace calories from
other foods and beverages.
(13) Overweight children have a much greater chance of
being obese as adults, with all the health risks that entails.
(14) Type 2 diabetes, previously only seen among adults, is
now increasing among children. Data show that almost a quarter
of teens now have either diabetes or prediabetes. If the
current trends are not reversed, it is predicted that one in
three children and nearly one-half of Latino and African-
American children born in the year 2000 will develop type 2
diabetes in their lifetime.
(15) People who consume an average amount of added sugar
equivalent to one 20-ounce soda per day are 30 percent more
likely to die from a heart attack over 15 years. People who
consume the added sugar equivalent of at least 2-3 20-ounce
sodas per day are 2.75 times more likely to die from a heart
attack.
(16) Tooth decay (dental caries) is the single most common
chronic childhood disease, experienced by more than one-fourth
of United States children aged 2-5 years and half of those aged
12-15 years. About half of all children and two-thirds of
adolescents aged 12-19 years from lower-income families have
had decay. According to the American Academy of Pediatric
Dentistry, children who frequently or excessively consume
beverages high in sugar are at increased risk for dental
caries. Untreated dental caries can lead to pain, infection,
tooth loss, and in severe cases, even death. It can slow normal
growth and development by restricting nutritional intake.
Children who are missing teeth may have chewing problems that
limit their food choices and result in nutritionally inadequate
diets.
(b) Purposes.--It is the intent of the Congress, by adopting the
Sugar-Sweetened Beverages Tax Act (also known as the SWEET Act), to
diminish the human and economic costs of diabetes, obesity, dental
caries, and other diet-related health conditions. This Act is intended
to discourage excessive consumption of sugar-sweetened beverages by
increasing the price of these products and by creating a dedicated
revenue source for programs and research designed to reduce the human
and economic costs of diabetes, obesity, dental caries, and other diet-
related health conditions in priority populations.
SEC. 3. EXCISE TAX ON CERTAIN SUGAR-SWEETENED BEVERAGES.
(a) In General.--Subchapter D of chapter 32 of the Internal Revenue
Code of 1986 is amended by inserting after part I the following new
part:
``PART II--SUGAR-SWEETENED BEVERAGES
``Sec. 4171. Imposition of tax.
``Sec. 4172. Definitions.
``Sec. 4173. Special rules.
``SEC. 4171. IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed a tax on the sale or
transfer of any specified sugar-sweetened beverage product by the
manufacturer, producer, or importer thereof.
``(b) Rate of Tax.--The rate of tax imposed under subsection (a)
shall be equal to one cent per 4.2 grams of caloric sweetener contained
in such specified sugar-sweetened beverage product.
``(c) Persons Liable for Tax.--The manufacturer, producer, or
importer referred to in subsection (a) shall be liable for the tax
imposed by such subsection.
``SEC. 4172. DEFINITIONS.
``(a) Specified Sugar-Sweetened Beverage Product.--For purposes of
this part--
``(1) In general.--For purposes of this part, the term
`specified sugar-sweetened beverage product' means--
``(A) any liquid intended for human consumption
which contains a caloric sweetener, and
``(B) any liquid, or solid mixture of ingredients,
which--
``(i) contains a caloric sweetener, and
``(ii) is intended for use as an ingredient
in a liquid described in subparagraph (A).
``(2) Exceptions.--The following shall not be treated as
liquids described in paragraph (1)(A):
``(A) Any liquid the primary ingredients of which
are milk or soy, rice, or similar plant-based milk
substitute.
``(B) Any liquid composed entirely of one or more
of the following:
``(i) The original liquid resulting from
the pressing of fruit or vegetables.
``(ii) The liquid resulting from the
reconstitution of fruit or vegetable juice
concentrate.
``(iii) The liquid resulting from the
restoration of water to dehydrated fruit or
vegetable juice.
``(C) Infant formula.
``(D) Any liquid products manufactured for use as--
``(i) an oral nutritional therapy for
persons who cannot absorb or metabolize dietary
nutrients from food or beverages,
``(ii) a source of necessary nutrition used
due to a medical condition, or
``(iii) an oral electrolyte solution for
infants and children formulated to prevent
dehydration due to illness.
``(E) Any liquid with respect to which tax is
imposed under chapter 51 (relating to distilled
spirits, wines, and beer) or under section 7652 by
reason of the tax imposed under chapter 51 being
imposed on like articles of domestic manufacture.
``(b) Caloric Sweetener.--For purposes of this part, the term
`caloric sweetener' means monosaccharides, disaccharides, and high-
fructose corn syrup.
``SEC. 4173. SPECIAL RULES.
``(a) Sweetener Taxed Only Once.--In the case of any specified
sugar-sweetened beverage product which is manufactured or produced by
including one or more other specified sugar-sweetened beverage
products, no tax shall be imposed under this section on any caloric
sweetener contained in the resulting specified sugar-sweetened beverage
product if tax was previously imposed under this section on such
caloric sweetener when contained in the specified sugar-sweetened
beverage product so included.
``(b) Inflation Adjustment.--In the case of any sale after December
31, 2015, the one cent amount in section 4171(b) shall be increased by
an amount equal to--
``(1) such amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which such sale
occurs, determined by substituting `calendar year 2014' for
`calendar year 1992' in subparagraph (B) thereof.
Any increase determined under this subsection shall be rounded to the
nearest multiple of one-tenth of a cent.''.
(b) Conforming Amendments.--
(1) Section 4221(a) is amended by adding at the end the
following: ``Paragraphs (1), (4), (5), and (6) shall not apply
to the tax imposed under section 4171.''.
(2) The table of parts for subchapter D of chapter 32 of
such Code is amended by inserting after the item relating to
part I the following new item:
``Part II--Sugar-Sweetened Beverages''.
(c) Revenues Used for Prevention, Treatment, and Research of Diet-
Related Health Conditions in Priority Populations.--
(1) Transfer to prevention and public health fund.--There
are hereby appropriated to the Prevention and Public Health
Fund created under section 4002 of the Patient Protection and
Affordable Care Act (in addition to any other amounts
appropriated to such Fund) amounts equivalent to taxes received
in the Treasury under part II of subchapter D of chapter 32.
Rules similar to the rules of section 9601 of the Internal
Revenue Code of 1986 shall apply with respect to amounts
appropriated under this paragraph.
(2) Restriction on use of funds.--Notwithstanding
subsections (c) and (d) of section 4002 of the Patient
Protection and Affordable Care Act, amounts appropriated to the
Prevention and Public Health Fund under paragraph (1) may be
transferred to accounts in the Department of Health and Human
Services only for the purpose of making expenditures for
programs and research designed to reduce the human and economic
costs of diabetes, obesity, dental caries, and other diet-
related health conditions in priority populations (within the
meaning of section 901(c) of the Public Health Service Act).
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Excise tax.--The amendments made by subsections (a) and
(b) shall apply to sales after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line