Soda Taxes: a Failed Experiment that Needs to End
They Harm the Poor without Reducing Obesity
Sin taxes have existed since at least the reign of Queen Cleopatra VII of Egypt, who legend has it enacted a tax on beer to reduce public drunkenness and raise money to war against Rome. Also known as “lifestyle taxes,” sin taxes are placed on goods based on the notion that increasing the price will discourage individual behaviors perceived as unhealthy—like smoking—or dangerous when consumed irresponsibly—like drinking—and as having negative effects on society. At the same time, these taxes raise revenue to offset the supposed public costs of the supposedly harmful products being taxed, or to fund other government programs. Today, public health advocates champion taxing sugary foods and drinks, like soda, as a way to fight obesity.
While most U.S. states have food taxes that encompass products like soda, few—apart from Berkeley, California—have soda taxes specifically aimed at reducing obesity. Past efforts to implement these “fat taxes” have largely failed to gain support due to opposition from consumers, economists, and the industry, but the recent apparent “success” in Mexico, which enacted a soda tax in 2014, has reinvigorated efforts in the states. Most recently, Philadelphia is considering a three cent per ounce soda tax aimed at raising $400 million for a universal pre-K program and “other” programs. But do soda taxes work?