Should there be a tax on soda?

Why People Support Soda Taxes Supporters of soda taxes argue that they can discourage people from wanting to buy sugary drinks and reduce the number of Americans who are obese. Besides diabetes, soft drink consumption has been linked to other health problems like liver disease and tooth decay.

Why is the soda tax bad?

Research also indicates that soda taxes are highly regressive, causing low-income households to pay nearly twice as much as the wealthy. A two-cents-per-ounce tax on soft drinks in the U.S. would cost the typical consumer more than $100 over the course of a year, a hefty expense for poor families.

What is the purpose of the soda tax?

Soda taxes are sometimes called a corrective or “sin tax” because, unlike a general sales tax, they are used in part to discourage the purchase of soda because the choice to consume it has costs both to the user and to other people (such as increased health care costs).

Why should sugar be taxed?

Taxation on sugary drinks is an effective intervention to reduce sugar consumption (8). Evidence shows that a tax on sugary drinks that rises prices by 20\% can lead to a reduction in consumption of around 20\%, thus preventing obesity and diabetes(9).

Why should soda and junk food be taxed?

With obesity and diabetes at record levels, many public health experts believe governments should tax soda, sweets, junk food, and other unhealthy foods and drinks. By increasing the price of products that contain sugar, taxes can get people to consume less of them and thus improve nutrition and health.

Is the soda tax ethical?

Available evidence suggests there is a strong ethical case for levying SSB excise taxes on manufacturers and distributors. SSB excise taxes reduce consumption and purchasing of SSBs and are expected to meaningfully reduce obesity and diet-related morbidity and mortality.

Should there be a tax on soda and junk food?

Is a sugar tax effective?

A 25\% increase in the price of sugar-sweetened beverages resulting from higher excise taxes would likely lead to a 34\% reduction in consumption of these drinks, the study shows. She said that effective policies such as taxation of sugar-sweetened beverages have become even more urgent amid the COVID-19 pandemic.

Are sugary drinks taxed?

There would be no tax on beverages containing less than 7.5 grams of sugar per 12 ounces, but a tax of 1 cent per ounce on beverages containing between 7.5 grams and 30 grams of sugar per 12 ounces, and a tax of 2 cents per ounce on beverages containing more than 30 grams of sugar per 12 ounces.

Will a soda tax reduce obesity?

As more countries and cities consider taxes on sugary beverages, some experts are beginning to look beyond drinks. In the study, researchers conclude that a 20 percent price increase on high-sugar snacks could lead to a 2 percent decrease in obesity in a year.

What country drinks the most soda?

In 2019, Mexico was the country with the highest carbonated soft drink consumption, namely over 630 8-ounce servings per capita per year. The United States stood in second place, with almost the same quantity, while Brazil, which ranked third, consumed less than half the soft drinks Mexicans drank that year.

Should we tax unhealthy food and drinks?

Beyond data relating their consumption to ill health, sugary drinks are an appealing target for taxation because they contain no nutritional benefit beyond calories….Table 1.

Country	Kiribati
Date Introduced	2014
Products Taxed	Soft drinks including those containing artificial sweeteners
Tax Rate	40\% excise duty