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Title : Philadelphia's soda tax flop
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Philadelphia's soda tax flop

The results are in from much vaunted soda tax in Philadelphia and it's the same old story...

We analyze the impact of a tax on sweetened beverages, often referred to as a “soda tax,” using a unique data-set of prices, quantities sold and nutritional information across several thousand taxed and untaxed beverages for a large set of stores in Philadelphia and its surrounding area. We find that the tax is passed through at a rate of 75-115%, leading to a 30-40% price increase. Demand in the taxed area decreases dramatically by 42% in response to the tax. There is no significant substitution to untaxed beverages (water and natural juices), but cross-shopping at stores outside of Philadelphia completely offsets the reduction in sales within the taxed area. As a consequence, we find no significant reduction in calorie and sugar intake.

This is exactly what happened in Berkeley, California.

Five dollars to the first person who spots a 'public health' lobbyist citing this study.

thus Article Philadelphia's soda tax flop

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