Soda taxes made sugary drink prices rise and sales fall in cities that tried them, study finds Fox Business

Image for article Soda taxes made sugary drink prices rise and sales fall in cities that tried them, study finds  Fox Business
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  • (Paul Chinn/The San Francisco Chronicle via Getty Images / Getty Images)Previous studies on the impact of soda taxes have looked at one taxed city compared to a control city with no taxes, researchers said..
  • This study differed by analyzing the composite effect of SSB taxes in multiple cities to paint a picture of what could happen if soda taxes were more widespread, lead author Scott Kaplan, an economics professor at the U.S..
  • The American Beverage Association, an industry trade group, has said taxes limit consumer choice and that, over time, free market forces have incentivized companies to offer reduced sugar or sugar-free options to consumers..
  • "SSB excise taxes were associated with large, consistent declines in SSB purchases across 5 US taxed cities following tax-driven price changes," the study said..
  • The authors noted that previous studies have found that a 15% to 20% increase in price or decrease in consumption of sugary drinks led to significant health benefits, including reductions in heart disease, strokes, diabetes and obesity..
  • (Justin Sullivan/Getty Images / Getty Images)"The results show shelf prices of SSB products increased by an average of 33.1% (1.3¢ per oz) in the years following SSB tax implementation, corresponding to a 92% price pass-through rate from distributors to consumers..
Sales of sugary drinks plummeted by about onethird across five U.S. cities after they started taxing those products, a study published Friday found.Soda taxes adopted in each city pushed sugarswe [+3586 chars]

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