S. 5086 — Introduced in Senate

II 117th CONGRESS 2d Session S. 5086 IN THE SENATE OF THE UNITED STATES November 15, 2022Mr. 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. 1. Short title This Act may be cited as the Stop Subsidizing Childhood Obesity Act of 2022. 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: 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).