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Are Soda Taxes Good Public The Economics of a Soda Tax

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Are Soda Taxes Good Public Policy?
Even if soda taxes work, are they good public policy? According to a
thorough study by Donald Marron and others at the Tax Policy Center:
 Well-designed taxes can encourage people to make healthier eating and
drinking choices and can encourage businesses to develop and market
healthier products.
 However, soda taxes are regressive—they place a relatively greater burden on
people with lower incomes
 Unlike smoking, many people consume moderate amounts of SSBs without
harm to their health
 The bottom line: Taxes are an imperfect instrument for addressing nutrition and
health concerns, but they may make sense as part of larger policy efforts
related to obesity and excess sugar consumption
Updated Mar. 23, 2016 Ed Dolan’s Econ Blog
Donald Marron et al., “Should We Tax Unhealthy Food and Drinks?” Tax Policy Center Dec. 2015

Published in: Economy & Finance
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