“Soda taxes don’t help people slim down or improve their diet, they just fatten government coffers,” according to the Competitive Enterprise Institute (CEI).
This conclusion was reached by a study that was conducted as Philadelphia lawmakers weigh taxing sugar and other sweetened drinks. Many believe taxing these unhealthy beverages will prevent people from buying them, and improve public health. But CEI is skeptical of this theory.
CEI consumer policy expert Michelle Minton explains why the tax is unnecessary:
“Soda taxes are a stealth tax against middle class and especially lower-income people. Faced with a new tax on soda, some consumers may shift their calorie indulgences to other foods or drinks, some may cut back on other grocery purchases, and others will just pay the tax to get their favorite soda.”
Mexico imposed a 10 percent tax on their soda, but it turns out low-income families are still buying them. After a short-term cutback in consumption, people returned to their old habits in spite of the extra cost.
For more info go to the Competitive Enterprise Institute (CEI).
McCall is an intern at Bold. She graduated with her Bachelor's degree in Broadcast Journalism and loves all things media and communications. As a San Diego native, she thrives in the sun and enjoys being outdoors.