One year following implementation of the nation’s first large sugar-sweetened beverages (SSB)' tax, prices of SSBs increased in many, but not all, settings, SSB sales declined, and sales of untaxed beverages (especially water) and overall study beverages rose in Berkeley; overall consumer spending per transaction in the stores studied did not rise. Significant declines in SSB sales, even in this r...See More
Economist and Assistant Professor, University of Massachussets
Proponents of soda taxes often reference the success of cigarette taxes in decreasing cigarette use. However, cigarettes and soda differ in a number of ways. First, cigarette taxes increase prices significantly, a tactic that may be unjustifiable for soft drinks given that, unlike cigarette use, moderate soda consumption is considered safe. Second, the many available soda substitutes may render so...See More
Economist and Director of State Projects for the Tax Foundation
Economic evidence shows that they have minimal effects because consumers are likely to substitute other calorie-laden products for soda. In practice, soda taxes just create compliance difficulties as businesses are forced to reclassify new products for different tax treatment.
Media Relations Manager for the Tax Foundation think tank
Philadelphia, which recently enacted a soda tax, is starting to find this out. Their 1.5-cents per ounce sugar-sweetened beverage tax doesn’t sound like much, until you realize that the effective tax rate is about 20 times higher than the excise tax for alcohol. Suffice to say, that led to some sticker shock after the tax went into effect. Thanks to Philly’s new tax, at $9.03, a 12-pack of flavore...See More