I 

115TH CONGRESS 

2D SESSION H. R. 7341 

To amend the Internal Revenue Code of 1986 to impose an excise tax 

on sugar-sweetened beverages, to dedicate the revenues from such tax 

to the prevention, treatment, and research of diet-related health conditions in priority populations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2018 

Ms. DELAURO introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy 

and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

an excise tax on sugar-sweetened beverages, to dedicate 

the revenues from such tax to the prevention, treatment, 

and research of diet-related health conditions in priority 

populations, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sugar-Sweetened Bev5 erages Tax Act of 2018’’ or as the ‘‘SWEET Act’’. 


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1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—The Congress finds that: 

3 (1) The prevalence of obesity in the United 

4 States has increased dramatically over the past 30 

5 years. From the 1960s to the late 1970s, the preva6 lence was relatively constant, with about 15 percent 

7 of the population classified as obese. After the 

8 1970s, these rates began to climb. According to the 

9 Centers for Disease Control and Prevention, by 

10 2012 more than one-third (34.9 percent) of adults 

11 and 17 percent of youth in the United States were 

12 obese. Although no group has escaped the epidemic, 

13 low income people and communities of color are dis14 proportionately affected. In 2012, nearly half (47.8 

15 percent) of African-American adults were obese and 

16 42.5 percent of Hispanic adults were obese. 

17 (2) The percentage of children who are over18 weight has also increased dramatically in recent dec19 ades. After being relatively constant from the 1960s 

20 to the 1970s, the prevalence of overweight children 

21 has more than tripled among children between 6 and 

22 11 years of age and nearly quadrupled among those 

23 between 12 and 19 years of age. Despite significant 

24 public and private investment, childhood obesity 

25 rates remain high. Overall, obesity among our Na26 tion’s young people, aged 2–19 years, has not 


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1 changed significantly since 2004 and remains at 

2 about 17 percent—equaling 12.5 million children 

3 and adolescents. 

4 (3) There are significant racial and age dispari5 ties in obesity prevalence among children and adoles6 cents. In 2011–2012, obesity prevalence was higher 

7 among Hispanics (22.4 percent) and non-Hispanic 

8 Black youth (20.2 percent) than non-Hispanic White 

9 youth (14.1 percent). The prevalence of obesity was 

10 lower in non-Hispanic Asian youth (8.6 percent) 

11 than in youth who were non-Hispanic White, non12 Hispanic Black, or Hispanic. 

13 (4) Overweight and obesity are responsible for 

14 an estimated $190 billion in health care costs na15 tionally, or approximately 5 to 10 percent of all 

16 medical spending—with over 20 percent of these 

17 costs paid publicly through the Medicare and Med18 icaid programs. The medical costs for people who 

19 are obese are dramatically higher ($2,741 per year) 

20 than those of normal weight. 

21 (5) The obesity epidemic is of particular con22 cern because obesity increases the risk of diabetes, 

23 heart disease, certain types of cancer, arthritis, asth24 ma, and breathing problems. Depending on their 

25 level of obesity, from 60 percent to over 80 percent 


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1 of obese adults have type 2 diabetes, high blood cho2 lesterol, high blood pressure, or other related condi3 tions. According to the CDC, nearly 60 percent of 

4 overweight children have at least one risk factor for 

5 heart disease. 

6 (6) Overweight and obesity increase the risk for 

7 several types of common cancers, including post8 menopausal breast, colorectal, endometrial, kidney, 

9 pancreatic, esophageal, and gall bladder cancer. Up 

10 to one in four of all cancer cases and one in three 

11 cancer deaths are due to poor nutrition, physical in12 activity, and overweight and obesity. 

13 (7) There is overwhelming evidence of the link 

14 between the consumption of sugar-sweetened bev15 erages, such as non-diet soft drinks, energy drinks, 

16 sweet teas, and sports drinks, and obesity and diabe17 tes. Adults who drink one sugar-sweetened beverage 

18 or more per day are 27 percent more likely to be 

19 overweight or obese, regardless of income or eth20 nicity. After six months, daily consumption of one 

21 liter of sugar-sweetened beverages increases fat de22 posits in the liver by 150 percent, which directly 

23 contributes to both diabetes and heart disease. 

24 (8) According to nutrition experts, sugar-sweet25 ened beverages, such as soft drinks, energy drinks, 


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1 sweet teas, and sport drinks, offer little or no nutri2 tional value, but massive quantities of added sugars. 

3 A 20-ounce bottle of soda contains about 16 

4 teaspoons of sugars. Yet, the American Heart Asso5 ciation recommends that Americans consume no 

6 more than six to nine teaspoons of sugar per day. 

7 (9) The 2010 Dietary Guidelines stated that al8 most one-half of the added sugars Americans con9 sume come from sugar-sweetened beverages, with 

10 the average American drinking nearly 45 gallons of 

11 sugar-sweetened beverages a year, the equivalent of 

12 39 pounds of extra sugar every year. 

13 (10) Though sugar-sweetened beverage con14 sumption is declining modestly as people learn about 

15 their harmful health effects, Americans are still con16 suming twice as much of these products as they did 

17 in the 1970s. Five percent of Americans consume at 

18 least 567 kcal from sugar drinks on any given day— 

19 equal to more than four 12-ounce cans of soft drink. 

20 According to the National Center for Health Statis21 tics, one-third of calories from added sugars (33 per22 cent) consumed in the United States were from bev23 erages. In children and adolescents, 40 percent of 

24 the calories from added sugars came from beverages. 

25 Children and adolescents consume 10 to 15 percent 


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1 of their total daily caloric intake from sugar-sweet2 ened beverages. 

3 (11) In a study of more than 50,000 female 

4 nurses, women who increased their sugar-sweetened 

5 beverage consumption from no more than one per 

6 week to at least one per day gained an average of 

7 10 pounds over four years. Research also shows a 

8 significant link between sugar-sweetened beverage 

9 consumption and weight gain in children. In a ran10 domized double-blind controlled trial of roughly 640 

11 children, those who were given one 8-ounce serving 

12 of a sugar-sweetened beverage a day gained more 

weight and body fat over 11 13 ⁄2 years than those who 

14 got one 8-ounce serving of a sugar-free beverage. 

15 (12) Sugar-sweetened beverages are a unique 

16 contributor to excess caloric consumption. A large 

17 body of research shows that calories from sugar18 sweetened beverages do not satisfy hunger the way 

19 calories from solid food or fat or protein-containing 

20 beverages such as those containing milk and plant21 based proteins. As a result, sugar-sweetened bev22 erages tend to add to the calories people consume 

23 rather than replace calories from other foods and 

24 beverages. 


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1 (13) Overweight children have a much greater 

2 chance of being obese as adults, with all the health 

3 risks that entails. 

4 (14) Type 2 diabetes, previously only seen 

5 among adults, is now increasing among children. 

6 Data show that almost a quarter of teens now have 

7 either diabetes or prediabetes. If the current trends 

8 are not reversed, it is predicted that one in three 

9 children and nearly one-half of Latino and African10 American children born in the year 2000 will develop 

11 type 2 diabetes in their lifetime. 

12 (15) People who consume an average amount of 

13 added sugar equivalent to one 20-ounce soda per day 

14 are 30 percent more likely to die from a heart attack 

15 over 15 years. People who consume the added sugar 

16 equivalent of at least 2–3 20-ounce sodas per day 

17 are 2.75 times more likely to die from a heart at18 tack. 

19 (16) Tooth decay (dental caries) is the single 

20 most common chronic childhood disease, experienced 

21 by more than one-fourth of United States children 

22 aged 2–5 years and half of those aged 12–15 years. 

23 About half of all children and two-thirds of adoles24 cents aged 12–19 years from lower-income families 

25 have had decay. According to the American Academy 


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1 of Pediatric Dentistry, children who frequently or 

2 excessively consume beverages high in sugar are at 

3 increased risk for dental caries. Untreated dental 

4 caries can lead to pain, infection, tooth loss, and in 

5 severe cases, even death. It can slow normal growth 

6 and development by restricting nutritional intake. 

7 Children who are missing teeth may have chewing 

8 problems that limit their food choices and result in 

9 nutritionally inadequate diets. 

10 (b) PURPOSES.—It is the intent of the Congress, by 

11 adopting the Sugar-Sweetened Beverages Tax Act (also 

12 known as the SWEET Act), to diminish the human and 

13 economic costs of diabetes, obesity, dental caries, and 

14 other diet-related health conditions. This Act is intended 

15 to discourage excessive consumption of sugar-sweetened 

16 beverages by increasing the price of these products and 

17 by creating a dedicated revenue source for programs and 

18 research designed to reduce the human and economic costs 

19 of diabetes, obesity, dental caries, and other diet-related 

20 health conditions in priority populations. 

21 SEC. 3. EXCISE TAX ON CERTAIN SUGAR-SWEETENED BEV22 ERAGES. 

23 (a) IN GENERAL.—Subchapter D of chapter 32 of the 

24 Internal Revenue Code of 1986 is amended by inserting 

25 after part I the following new part: 


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1 ‘‘PART II—SUGAR-SWEETENED BEVERAGES 

‘‘Sec. 4171. Imposition of tax. 

‘‘Sec. 4172. Definitions. 

‘‘Sec. 4173. Special rules. 

2 ‘‘SEC. 4171. IMPOSITION OF TAX. 

3 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

4 on the sale or transfer of any specified sugar-sweetened 

5 beverage product by the manufacturer, producer, or im6 porter thereof. 

7 ‘‘(b) RATE OF TAX.—The rate of tax imposed under 

8 subsection (a) shall be equal to one cent per 4.2 grams 

9 of caloric sweetener contained in such specified sugar10 sweetened beverage product. 

11 ‘‘(c) PERSONS LIABLE FOR TAX.—The manufac12 turer, producer, or importer referred to in subsection (a) 

13 shall be liable for the tax imposed by such subsection. 

14 ‘‘SEC. 4172. DEFINITIONS. 

15 ‘‘(a) SPECIFIED SUGAR-SWEETENED BEVERAGE

16 PRODUCT.—For purposes of this part— 

17 ‘‘(1) IN GENERAL.—For purposes of this part, 

18 the term ‘specified sugar-sweetened beverage prod19 uct’ means— 

20 ‘‘(A) any liquid intended for human con21 sumption which contains a caloric sweetener, 

22 and 

23 ‘‘(B) any liquid, or solid mixture of ingre24 dients, which— 


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1 ‘‘(i) contains a caloric sweetener, and 

2 ‘‘(ii) is intended for use as an ingre3 dient in a liquid described in subparagraph 

4 (A). 

5 ‘‘(2) EXCEPTIONS.—The following shall not be 

6 treated as liquids described in paragraph (1)(A): 

7 ‘‘(A) Any liquid the primary ingredients of 

8 which are milk or soy, rice, or similar plant9 based milk substitute. 

10 ‘‘(B) Any liquid composed entirely of one 

11 or more of the following: 

12 ‘‘(i) The original liquid resulting from 

13 the pressing of fruit or vegetables. 

14 ‘‘(ii) The liquid resulting from the re15 constitution of fruit or vegetable juice con16 centrate. 

17 ‘‘(iii) The liquid resulting from the 

18 restoration of water to dehydrated fruit or 

19 vegetable juice. 

20 ‘‘(C) Infant formula. 

21 ‘‘(D) Any liquid products manufactured for 

22 use as— 

23 ‘‘(i) an oral nutritional therapy for 

24 persons who cannot absorb or metabolize 

25 dietary nutrients from food or beverages, 


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1 ‘‘(ii) a source of necessary nutrition 

2 used due to a medical condition, or 

3 ‘‘(iii) an oral electrolyte solution for 

4 infants and children formulated to prevent 

5 dehydration due to illness. 

6 ‘‘(E) Any liquid with respect to which tax 

7 is imposed under chapter 51 (relating to dis8 tilled spirits, wines, and beer) or under section 

9 7652 by reason of the tax imposed under chap10 ter 51 being imposed on like articles of domes11 tic manufacture. 

12 ‘‘(b) CALORIC SWEETENER.—For purposes of this 

13 part, the term ‘caloric sweetener’ means monosaccharides, 

14 disaccharides, and high-fructose corn syrup. 

15 ‘‘SEC. 4173. SPECIAL RULES. 

16 ‘‘(a) SWEETENER TAXED ONLY ONCE.—In the case 

17 of any specified sugar-sweetened beverage product which 

18 is manufactured or produced by including one or more 

19 other specified sugar-sweetened beverage products, no tax 

20 shall be imposed under this section on any caloric sweet21 ener contained in the resulting specified sugar-sweetened 

22 beverage product if tax was previously imposed under this 

23 section on such caloric sweetener when contained in the 

24 specified sugar-sweetened beverage product so included. 


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1 ‘‘(b) INFLATION ADJUSTMENT.—In the case of any 

2 sale after December 31, 2015, the one cent amount in sec3 tion 4171(b) shall be increased by an amount equal to— 

4 ‘‘(1) such amount, multiplied by 

5 ‘‘(2) the cost-of-living adjustment determined 

6 under section 1(f)(3) for the calendar year in which 

7 such sale occurs, determined by substituting ‘cal8 endar year 2014’ for ‘calendar year 1992’ in sub9 paragraph (B) thereof. 

10 Any increase determined under this subsection shall be 

11 rounded to the nearest multiple of one-tenth of a cent.’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) Section 4221(a) is amended by adding at 

14 the end the following: ‘‘Paragraphs (1), (4), (5), and 

15 (6) shall not apply to the tax imposed under section 

16 4171.’’. 

17 (2) The table of parts for subchapter D of 

18 chapter 32 of such Code is amended by inserting 

19 after the item relating to part I the following new 

20 item: 

21 ‘‘Part II. Sugar-Sweetened Beverages.’’. 

22 (c) REVENUES USED FOR PREVENTION, TREAT23 MENT, AND RESEARCH OF DIET-RELATED HEALTH CON24 DITIONS IN PRIORITY POPULATIONS.— 


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1 (1) TRANSFER TO PREVENTION AND PUBLIC

2 HEALTH FUND.—There are hereby appropriated to 

3 the Prevention and Public Health Fund created 

4 under section 4002 of the Patient Protection and 

5 Affordable Care Act (in addition to any other 

6 amounts appropriated to such Fund) amounts equiv7 alent to taxes received in the Treasury under part 

8 II of subchapter D of chapter 32. Rules similar to 

9 the rules of section 9601 of the Internal Revenue 

10 Code of 1986 shall apply with respect to amounts 

11 appropriated under this paragraph. 

12 (2) RESTRICTION ON USE OF FUNDS.—Not13 withstanding subsections (c) and (d) of section 4002 

14 of the Patient Protection and Affordable Care Act, 

15 amounts appropriated to the Prevention and Public 

16 Health Fund under paragraph (1) may be trans17 ferred to accounts in the Department of Health and 

18 Human Services only for the purpose of making ex19 penditures for programs and research designed to 

20 reduce the human and economic costs of diabetes, 

21 obesity, dental caries, and other diet-related health 

22 conditions in priority populations (within the mean23 ing of section 901(c) of the Public Health Service 

24 Act). 

25 (d) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this section 

3 shall take effect on the date of the enactment of this 

4 Act. 

5 (2) EXCISE TAX.—The amendments made by 

6 subsections (a) and (b) shall apply to sales after the 

7 date of the enactment of this Act. 

Æ 


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