Title: Stop Subsidizing Childhood Obesity Act of 2022
Policy area: Taxation

Summary:
Stop Subsidizing Childhood Obesity Act of 2022
This bill denies a tax deduction for advertising or marketing directed at children (age 14 or under) for food of poor nutritional quality or a brand primarily associated with food of poor nutritional quality. The bill also denies a deduction for related expenses, including
The Department of the Treasury must enter into a contract with the National Academy of Medicine to develop procedures to evaluate and identify food of poor nutritional quality and brands that are primarily associated with such food.
The bill authorizes additional funding to carry out the Fresh Fruit and Vegetable Program under the Richard B. Russell National School Lunch Act.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5086 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 5086

To amend the Internal Revenue Code of 1986 to protect children's health 
  by denying any deduction for advertising and marketing directed at 
    children to promote the consumption of food of poor nutritional 
                                quality.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 15, 2022

 Mr. Blumenthal (for himself and Mr. Booker) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to protect children's health 
  by denying any deduction for advertising and marketing directed at 
    children to promote the consumption of food of poor nutritional 
                                quality.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Subsidizing Childhood Obesity 
Act of 2022''.

SEC. 2. STOP SUBSIDIZING CHILDHOOD OBESITY.

    (a) Findings.--Congress finds the following:
            (1) Childhood obesity has more than doubled in children and 
        tripled in adolescents in the past 30 years. Currently, more 
        than \1/3\ of children and adolescents in the United States are 
        overweight or obese, and non-Hispanic Black and Hispanic youth 
        have higher rates of obesity.
            (2) A report by the Robert Wood Johnson Foundation found 
        that if current trends continue, more than half of today's 
        children will be obese by age 35.
            (3) Health-related behaviors, such as eating habits and 
        physical activity patterns, develop early in life and often 
        extend into adulthood. Overall, American children and youth are 
        not achieving basic nutritional goals. The diets of American 
        children and adolescents depart substantially from the Dietary 
        Guidelines for Americans and put their health at risk. They are 
        consuming excess calories and added sugars and have higher than 
        recommended intakes of sodium, total fat, and saturated fats.
            (4) According to a 2012 report from the Federal Trade 
        Commission, the total amount spent on food marketing to 
        children is about $1,800,000,000 per year.
            (5) Companies market food to children through television, 
        radio, internet, magazines, product placement in movies and 
        video games, schools, product packages, toys, clothing and 
        other merchandise, and almost anywhere a logo or product image 
        can be displayed.
            (6) According to a comprehensive review by the National 
        Academy of Medicine, television food advertising affects 
        children's food choices, food purchase requests, diets, and 
        health.
            (7) A 2006 report from the National Academy of Medicine 
        confirmed that marketing high-calorie foods to children and 
        adolescents is one of the major contributors to childhood 
        obesity.
            (8) Nearly all of foods advertised on television 
        programming intended for children are for products high in 
        recommended nutrients to limit, as determined by the Federal 
        Interagency Working Group, including saturated fat, trans fat, 
        sugar, and sodium.
            (9) Food and beverage companies disproportionately target 
        advertising for many of their least nutritious brands to Black 
        and Hispanic youth, which contributes to health disparities. 
        Black children and teens view almost twice as many ads for 
        candy, sugary drinks, and snacks on television compared with 
        White youth, and \2/3\ of the food ads on Spanish-language 
        television promote fast food, candy, sugary drinks, and snacks. 
        Black children and teens viewed 70 percent more food-related TV 
        ads, and 90 percent more ads for snacks and sugary drinks, as 
        compared to their White peers.
            (10) A 2015 study published in the American Journal of 
        Preventative Medicine found that eliminating the tax deduction 
        for these expenses related only to television could reduce 
        childhood obesity and save about $350,000,000 in healthcare 
        costs over 10 years.
    (b) Denial of Deduction for Advertising and Marketing Directed at 
Children To Promote the Consumption of Food of Poor Nutritional 
Quality.--
            (1) In general.--Part IX of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new section:

``SEC. 280I. DENIAL OF DEDUCTION FOR ADVERTISING AND MARKETING DIRECTED 
              AT CHILDREN TO PROMOTE THE CONSUMPTION OF FOOD OF POOR 
              NUTRITIONAL QUALITY.

    ``(a) In General.--No deduction shall be allowed under this chapter 
with respect to--
            ``(1) any advertisement or marketing--
                    ``(A) primarily directed at children for purposes 
                of promoting the consumption by children of any food of 
                poor nutritional quality, or
                    ``(B) of a brand primarily associated with food of 
                poor nutritional quality that is primarily directed at 
                children, and
            ``(2) any of the following which are incurred or provided 
        primarily for purposes described in paragraph (1):
                    ``(A) Travel expenses (including meals and 
                lodging).
                    ``(B) Goods or services of a type generally 
                considered to constitute entertainment, amusement, or 
                recreation or the use of a facility in connection with 
                providing such goods and services.
                    ``(C) Gifts.
                    ``(D) Other promotion expenses.
    ``(b) NAM Study.--
            ``(1) In general.--Not later than 60 days after the date of 
        the enactment of this section, the Secretary shall enter into a 
        contract with the National Academy of Medicine under which the 
        National Academy of Medicine shall develop procedures for the 
        evaluation and identification of--
                    ``(A) food of poor nutritional quality, and
                    ``(B) brands that are primarily associated with 
                food of poor nutritional quality.
            ``(2) NAM report.--Not later than 12 months after the date 
        of the enactment of this section, the National Academy of 
        Medicine shall submit to the Secretary a report that 
        establishes the proposed procedures described in paragraph (1).
    ``(c) Definitions.--In this section:
            ``(1) Brand.--The term `brand' means a corporate or product 
        name, a business image, or a mark, regardless of whether it may 
        legally qualify as a trademark, used by a seller or 
        manufacturer to identify goods or services and to distinguish 
        them from the goods of a competitor.
            ``(2) Child.--The term `child' means an individual who is 
        age 14 or under.
            ``(3) Food.--The term `food' shall include beverages, 
        candy, and chewing gum.
    ``(d) Regulations.--Not later than 18 months after the date of the 
enactment of this section, the Secretary, in consultation with the 
Secretary of Health and Human Services and the Federal Trade Commission 
and based on the report prepared by the National Academy of Medicine 
pursuant to subsection (b)(2), shall promulgate such regulations as may 
be necessary to carry out the purposes of this section, including 
regulations defining the terms `marketing', `directed at children', 
`food of poor nutritional quality', and `brand primarily associated 
with food of poor nutritional quality' for purposes of this section.''.
            (2) Clerical amendment.--The table of sections for such 
        part IX is amended by adding at the end the following new item:

``Sec. 280I. Denial of deduction for advertising and marketing directed 
                            at children to promote the consumption of 
                            food of poor nutritional quality.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred in taxable years 
        beginning 24 months after the date of the enactment of this 
        Act.
    (c) Additional Funding for the Fresh Fruit and Vegetable Program.--
In addition to any other amounts made available to carry out the Fresh 
Fruit and Vegetable Program under section 19 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769a), the Secretary of the 
Treasury (or the Secretary's delegate) shall, on an annual basis, 
transfer to such program, from amounts in the general fund of the 
Treasury of the United States, an amount determined by the Secretary of 
the Treasury (or the Secretary's delegate) to be equal to the increase 
in revenue for the preceding 12-month period by reason of the 
amendments made by subsection (b).
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