2013-05-28

Cato: Sugar Taxes Are Unfair And Unhealthy


If the regulatory discussion about sugar is going to be based on science, rather than science fiction, it needs to move beyond kicking the soda can.
Conventional wisdom says draconian regulation—specifically, a high tax—on sugary drinks and snacks reduces unhealthy consumption, and thereby improves public health. There are many reasons, however, why high sugar taxes are at best unsuccessful, and at worst economically and socially harmful.
Research finds that higher prices don’t reduce soda consumption, for example. No scientific studies demonstrate a difference either in aggregate soda consumption or in child and adolescent Body Mass Index between the two thirds of states with soda taxes and those without such taxes.
The study that did find taxes might lead to a moderate reduction in soda consumption also found this had no effect on adolescent obesity, as the reduction was completely offset by increases in consumption of other calorific drinks.

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