Soda taxes are meant to discourage people from drinking too much sugar, which is linked to a host of bad health outcomes. Cities that imposed the taxes saw a 33% decrease in the sale of sugary drinks.

Sales of sugary drinks fell dramatically across five U.S. cities, after they implemented taxes targeting those drinks – and those changes were sustained over time. That’s according to a study published Friday in the journal JAMA Health Forum.

Researchers say the findings provide more evidence that these controversial taxes really do work. A claim the beverage industry disputes.

The cities studied were: Philadelphia, Seattle, San Francisco and Oakland, Calif., and Boulder, Colo. Taxes ranged from 1 to 2 cents per ounce. For a 2-liter bottle of soda, that comes out to between 67 cents to $1.30 extra in taxes.

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Kaplan and his colleagues found that, on average, prices for sugar-sweetened drinks went up by 33.1% and purchases went down by basically the same amount – 33%.

  • EatATaco@lemm.eeEnglish
    2·
    10 months ago

    If you’re really pointing to economics 101 supply and demand curve, then yes you absolutely did. The supply and demand curve determines the price based on supply and demand. With the tax, we are talking about the price affecting the demand.