Categories: News

It Turns Out That Taxing Soda Makes People Drink Less Soda

[ad_1]

Justin Sullivan / Getty Images

It's too soon to tell whether a so-called “soda tax” can improve public health. But early data shows it certainly seems to lead to people drinking less soda.

Consumption of sugary drinks has declined in three places that recently started taxing soda: two cities (Berkeley, CA and Philadelphia, PA) and a country (Mexico.)

Grocers and beverage distributors in Philadelphia, which implemented a 1.5-cents-per-ounce tax on soda on this year, recently told Bloomberg that in the first few weeks their sales have slid by as much as 50%. Results in Philadelphia, the country's fifth most populous city, could provide feedback on what impact these taxes would have on soda consumption in a major urban market.

In Berkeley, the first US city to adopt a soda tax, a 2016 survey by UC Berkeley found consumption of soda and other sugary beverages in low-income neighborhoods fell 21% after a 1-cent-per-ounce tax was rolled out in 2015.

In Mexico, where a soda tax went into effect in 2014, purchases of taxed sugar-sweetened beverages beverages decreased by 5.5% in 2014 and 9.7% in 2015, according to a new study in Health Affairs that used Nielsen survey data.

More soda taxes are planned: two more Californian cities, San Francisco and Oakland; the New York state capital, Albany; Boulder, Colorado; and Cook County, Illinois, home to more than 5 million people including residents of Chicago, the country's third-largest city.

A penny or so per ounce may not sound like a lot, but it adds up. Philadelphia raised $5.7 million in January from the tax. In Chicago, the price of a $10 pack of soda is estimated to rise to $15.76 when the tax kicks in this summer.

This Philly restaurant paid a sugary beverage tax of $58.95 on a $321 purchase, increasing its cost by 18%.

Instagram: @wellreadchef

Health groups, like the American Heart Association, support the tax as a way to reduce sugar intake, but there's a catch: the soda tax in both Berkeley and Philadelphia is imposed on distributors, not as a sales tax to consumers. People begin drinking less soda once the tax is passed on in the form of higher prices in stores and on menus — but theres a risk that grocery stores and restaurants may choose to increase prices on other products instead.

California City Passes First-In-The-Nation Tax On Soda

Soda Taxes Pass In Four Cities, Dealing Blow To Big Soda

[ad_2]

techfeatured

Recent Posts

The Benefits of Partnering with an IT-Managed Service Provider for Your Business

Table of Contents Introduction to IT Managed Service Providers Why Outsource IT Management? Cost-Effective Solutions…

2 months ago

Choosing the Right Thresholds for Your Home: A Comprehensive Guide

Key Takeaways: The importance of selecting the correct thresholds for different areas in your home…

4 months ago

Innovative Railing Gate Solutions for Modern Homes

Key Takeaways: The variety of railing gate designs can significantly enhance the aesthetic appeal of…

4 months ago

How To Choose the Perfect Vehicle for Extended Commutes

For many, commuting is an unavoidable part of daily life. But when that commute extends…

4 months ago

The Future of Mobility: Innovations in Automotive Technology

When you're on the road, you want to feel safe, comfortable, and like you have…

5 months ago

Clean Air Starts at Home: Tips for Maintaining Indoor Air Quality

Key Takeaways: Understanding the significance of indoor air quality. Identifying common pollutants in your home.…

5 months ago