Soda tax does raise prices of sugary drinks

Soda tax does raise prices of sugary drinks

Soda has been shown to increase weight gain, and the high fructose corn syrup and aspartame have both shown detrimental health effects.

New research from Consumer Reports shows that soda is linked to cancer. More research has shown that it can also increase stroke risk, and cause diabetes.

Soda and other sweetened beverages have no redeeming nutritional value, and ditching them from your diet can go a long way toward improving your health,” said Dr. Joseph Mercola, a leading health expert and physician. “One 20-ounce bottle of cola contains the equivalent of about 16 teaspoons of sugar in the form of high fructose corn syrup (HFCS), which will cause your insulin to spike within 20 minutes of drinking it.”

Berkeley, California became the first city in the U.S. to create a tax on soda. After the tax was administered, questions were raised wondering if the tax would in fact increase soda prices. New research from the University of California, Berkeley shows that the soda tax does raise prices of sugary drinks.

The soda tax that was approved was an excise tax. With sales taxes, customers pay the added tax at the register, but with excise taxes, the tax is added to the total before point of purchase.

No one knew how retailers would deal with the added costs of the tax,” said study lead author Jennifer Falbe, a UC Berkeley postdoctoral researcher in public health nutrition. “Increasing the price of sugary drinks is a critical first step in discouraging consumption, so it’s incredibly encouraging that we’re seeing pass-through of the tax to higher retail prices so early after implementation. We expect higher price increases in the future as small business owners learn more about the tax.”

The study showing that soda tax does raise prices of sugary drinks was published in the American Journal of Public Health.

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REFERENCES:
1. “Caramel Color in Soft Drinks and Exposure to 4-Methylimidazole: A Quantitative Risk Assessment.” Plos One. Plos One, 18 Feb. 2015. Web. 12 Oct. 2015.
2. “Diet Soda May Raise Odds of Vascular Events; Salt Linked to Stroke Risk.” EurekAlert! American Heart Association, 9 Feb. 2011. Web. 12 Oct. 2015.
3. “New Studies Link Soda and Diabetes.” Mercola.com. Mercola.com, 5 Aug. 2015. Web. 12 Oct. 2015.
4. “Berkeley’s Soda Tax Boosts Retail Prices of Sugary Drinks, Study Confirms.” Berkeley News. Berkeley News, 07 Oct. 2015. Web. 12 Oct. 2015.
5. “Higher Retail Prices of Sugar-Sweetened Beverages 3 Months After Implementation of an Excise Tax in Berkeley, California.” American Public Health Association. American Public Health Association, n.d. Web. 12 Oct. 2015.

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