# The SWEET Act: A Tax on Sugary Drinks

This bill would create a federal tax on sugary beverages like soda, energy drinks, sports drinks, and sweet teas. The tax would be imposed on manufacturers and producers when they make or import these drinks, though the bill suggests they pass the cost along to consumers at the store.

The tax uses a tiered system based on how much sugar is in each drink. Beverages with less than 7.5 grams of sugar per 12 ounces wouldn't be taxed at all. Drinks with 7.5 to 30 grams of sugar per 12 ounces would be taxed at 2 cents per ounce, while drinks with more than 30 grams of sugar would be taxed at 3 cents per ounce. To put this in perspective, a typical 20-ounce bottle of regular soda with about 65 grams of sugar would face roughly 60 cents in tax under the higher rate. The bill also covers syrups and powders used to make sugary drinks at home or in restaurants. The tax amounts would increase each year to keep pace with inflation.

The bill exempts several products from the tax, including milk-based drinks, plant-based milk alternatives like almond or oat milk, pure fruit and vegetable juices, infant formula, and medical nutrition products. Alcoholic beverages are also excluded since they're already taxed separately.

All revenue from this tax would go directly to the School Breakfast Program to improve nutrition standards and provide additional funding for schools that meet updated nutrition guidelines. The bill requires the Department of Agriculture to create new nutrition standards for school breakfasts within six months, with a focus on limiting added sugars. Schools that comply with these standards would receive an extra 10-cent reimbursement per breakfast served.

SWEET Act

DeLauro, Rosa L.

Sugary Drinks Tax Act of 2021 or the SWEET Act This bill imposes an excise tax on the sale or transfer of any specified sugary drink product. The bill defines specified sugary drink product as any liquid intended for human consumption that contains a caloric sweetener (i.e., monosaccharides, disaccharides, and high-fructose corn syrup), with specified exceptions. The bill provides for the transfer of revenues from the tax for the benefit of the School Breakfast Program.