California has banned all new local taxes on food, including soda, by 2030 to avoid a ballot fight with the beverage industry.
Taxes on sugary drinks are retained. Proponents say these taxes have been successful in combating health problems caused by drinks, such as obesity.
But big beverage companies such as Coca-Cola and PepsiCo used the state's political system to force the newly passed ban. A corporate group supported a voting decision that would have made it harder to impose a new tax hike or increase.
If this referendum had been passed by referendum in November, national and local legislators would have required a two-thirds majority to increase taxes, not just half. In light of the decision between the limited ban on soft drinks and food or a barrier to new taxes, California legislators approved the limited ban. In return, the group withdrew its election initiative.
Trend Stories on Newsy.com