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