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California has banned any new local tax on groceries, including soft drinks, until 2030 in an agreement to avoid a confrontation with the beverage industry.
Taxes already in place on sweetened beverages will remain. Defenders say that these taxes have been successful in combating health problems caused by drinks, such as obesity.
But major beverage companies like Coca-Cola and PepsiCo have used the state's political system as a means of forcing the newly adopted ban. A group of companies supported a vote measure that would have made any further tax or tax increase difficult.
If this voting measure had been passed and passed by the popular vote in November, state and local legislatures would have needed a two-thirds majority vote to raise taxes, rather than the same. 39, just over half. Faced with the decision between the limited ban on soda and groceries or an impediment to new taxes, California lawmakers have agreed to pass the limited ban. In return, the group of companies withdrew its initiative to vote.
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