In July, California’s legislature and governor faced an elegant — and legal — extortion threat. The American Beverage Association, funded by Coke and Pepsi, demanded immediate passage of legislation that preempts any soda taxes imposed by county or local governments for the next 12 years. If Gov. Jerry Brown (D) and the Democratic-controlled legislature refused, Big Soda would go forward with a ballot initiative this November that would severely limit any future tax increases at local and county levels.
