David Paterson, New York Governor, proposed a way to generate $815 million annually to help close a $9.2 billion budget deficit on Thursday, May 20, 2010.  According to reports the Governor proposed his idea to generate $815 million annually to help close the $9.2 billion budget deficit.  His proposal includes lifting the sales tax on diet soda, and implementing a new “sugar tax” to full calorie drinks.

An older version of the “soda tax” proposal was rejected by the state legislature.  The beverage industries also took a strong stance against it.  The new proposal by the governor would make diet sodas cheaper and unhealthier and sugary drinks would rise in price.

“The new proposal will discourage consumption of high-calorie beverage while simultaneously making lower-calorie beverages more affordable, which will lead to major gains in public health,” stated New York City Mayor Michael Bloomberg.

According to health experts, two thirds of the U.S. population is overweight and considered obese and non-diet sodas are one of the leading causes of excess calories being consumed by Americans.  These excess calories are helping contribute to the obesity epidemic.

The chairman of New Yorkers Against Unfair Taxes, Nelson Eusebio, stated, “The plan was bad for business and bad for consumers. We don’t need another tax to fuel more government spending. No matter how he tries to package it, imposing a new $1 billion tax on already stretched New Yorkers is simply a bad idea.”