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Candy Execs Rally Against Proposed Tax
Posted By master On January 22, 2010 1:55 PM In | No Comments
Olympia, WA — Candy executives are speaking out today against HB 2388, the proposal to apply Washington state’s 6.5 percent sales tax to candy.
Representatives from Seattle Chocolate Co. and Brown & Haley are urging the state’s House committees on finance and health care to oppose the bill, claiming the tax is discriminatory and will negatively impact jobs.
Chairperson Anne Haley, of Brown & Haley, states that although the legislature has supported local confectionery businesses in the past, this tax would be unfair and detrimental to the industry.
Rising raw material costs coupled with the recession have already forced companies to cut back on spending, and this tax would place additional pressure on the situation, according to Jean Thompson, CEO and owner of Seattle Chocolate.
Both companies noted the tax would be complicated to implement, because under HB 2388, a chocolate- covered strawberry would be considered a candy, while candy bars with wafers would not.
“On behalf of the U.S. candy industry we want to express our appreciation to Anne Haley and Bill Young of Brown & Haley and Jean Thompson of the Seattle Chocolate Company for making it clear to legislators in the state of Washington that a tax on candy in that state will cause irreparable harm to the candy companies located there,” says Susan Smith, NCA senior vice-president of public affairs.
Legislators have argued the tax will help curb the obesity epidemic in the U.S., but the NCA points out: “Although Washington legislators suggest that a candy tax should be used to cover health care funding shortfalls, the fact is candy represents less than two percent of the calories Americans consume; it is a small pleasure which can be enjoyed as part of a healthy, active lifestyle.”
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