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Study: Soda Tax Would Hurt Low and Middle-Income Americans the Most

Study: Soda Tax Would Hurt Low and Middle-Income Americans the Most
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By    |   Friday, 22 June 2018 11:16 AM

A nationwide tax on sugary drinks would hit low- and middle-income families the hardest, according to a new study.

Key findings in the Tax Foundation report: 

  • 32 percent of households that purchase beverages sweetened with sugar make between $50,000 and $100,000 per year.
  • 30 percent make between $20,000 and $50,000 per year.
  • 13 percent take in less than $20,000 per year.
  • If a nationwide sugary drinks tax were to be instituted, two-thirds of the revenues from that tax would come from households that earn between $20,000 and $100,000.

"Sugar-sweetened beverage taxes theoretically offer the potential for reducing externality health-care costs stemming from excessive sugar consumption, and in this way they may raise the prospect of efficiency gains by signaling to consumers these higher social costs," the report concludes.

"However, these taxes also raise equity concerns to the extent these goods represent a disproportionate share of the consumption among lower-income households."

Several cities have taxes on sugary drinks, including Berkeley, California; Philadelphia; San Francisco; Boulder, Colorado; Seattle; and others.

In April 2017, Coca-Cola said Philadelphia's tax on sugary drinks was hurting its business in the city.

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A nationwide tax on sugary drinks would hit low- and middle-income families the hardest, according to a new study.
nationwide, tax, soda, poor, americans
185
2018-16-22
Friday, 22 June 2018 11:16 AM
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