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Institute of Economic Affairs disagrees: Soda taxes

The Institute of Economic Affairs is the UK's original free-market think-tank, founded in 1955.

Early evidence casts serious doubt on whether sugary drink taxes have ‘progressive’ health benefits either. Low-income consumers do not seem to have particularly elastic demand for sugary drinks. Even if they enjoyed disproportionate health gains from sin taxes, they would still suffer a net loss to their welfare and the tax would remain regressive in the traditional sense.


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