Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Coca-Cola Company (KO), PepsiCo, Inc. (PEP), And A Taxing Decision for Soda Makers

The Coca-Cola Company (NYSE:KO)It’s a mark of how far the U.S. has fallen that it ranks 10th — 10th! — on the list of countries with the most economic freedom, surpassed by the likes of Singapore, Hong Kong, Australia, and even Denmark. There’s something rotten when Denmark — a country with the highest tax obligation of any country in high-tax Europe — can still otherwise beat out the U.S. economically.

Yet even that bastion of tax-and-spend economics realizes sometimes you need to cut taxes if you want to spur growth. It has proposed repealing its tax on soda, partially as a response to Danes who simply cross the border into Germany to buy their beverages, but also because of the realization that their economy was becoming less competitive because of the imposition. It’s notable that Denmark also repealed its tax on high-fat foods.

The Union of European Soft Drink Associations applauded the move, saying: “Soft drink taxes are on the wane and being voted down by governments and parliaments across Europe. They have not proven to achieve any public health objectives and they destroy jobs and economic value.”

Compare that, however, with the mind-set here in the U.S., where New York’s Nanny Mayor Michael Bloomberg thinks he has the power to limit the size of sodas you can drink in order to protect your health (he’s also waged war on trans fats, smoking, and other individual-choice decisions). Unfortunately, he’s not alone. The Center for Science in the Public Interest reports that 39 states have special taxes on sugary drinks, and lest you think it’s a real concern over health issues and not simply a means to raise more tax revenue, even CSPI laments that despite raking in more than $1 billion annually, the taxes aren’t high enough to actually curb consumption and the states largely don’t earmark the funds for promoting good health.

The Coca-Cola Company (NYSE:KO) has come out with a position paper on obesity that acknowledges the epidemic rampant in the U.S. but goes on to point out no single type of beverage is responsible for it and there are lifestyle choices that are just as much to blame, if not more so.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.