Study Casts Doubt on Soda Tax Idea

A new report found that beverage taxes won’t cure obesity because people would shift sugar intake to other sources.

March 14, 2014

PRINCETON, N.J. – The idea that obesity rates would fall if sugar-sweetened beverages were taxed has its supporters, but a new report finds that people would simply consume sugar from other sources — and still gain weight, the Washington Examiner reports.

“Our results cast serious doubt on the assumptions that proponents of large soda taxes make on its likely impacts on population weight,” said three economic health experts in the report. “Together with evidence of important substitution patterns in response to soda taxes that offset any caloric reductions in soda consumption, our results suggest that fundamental changes to policy proposals relying on large soda taxes to be a key component in reducing population weight are required.”

The report undermines the basic tenet supporters of soda taxes have, that such a tax would slash obesity, especially in kids. The report considered the impact of soda taxes on obesity at the national and state level, specifically at Arkansas and Ohio, which tax sugary beverages.

Nationally, adding a sugared drink tax would result in adults consuming 27.7 more calories per day with substitutions for soda. “An important conclusion … is that this evidence demonstrates that large increases in soft-drink taxes are unlikely to reduce total caloric intake,” the report found. For the state data, the report showed a drop in obesity in Arkansas with limited data, but no significant weight reduction in Ohio with more data.

In America, soft drink taxes have been popping up around the country. The San Francisco Board of Supervisors is considering a 2-cent-per-ounce tax on energy drinks, sports drinks and soda. If approved by the entire board, voters would have the opportunity to decide its fate in the November election. Meanwhile, an Illinois senator sponsored the bill that would tax sugared beverages at a penny per ounce, while a Connecticut mayor wants the state to consider a statewide tax on soft drinks.

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