Soda Taxes Are A Failed Experiment, Claims New Report
The Daily Caller reports on Michelle Minton's analysis of the impacts of soda taxes.
Soda taxes are a failed experiment and should be scrapped, according to a new report from the Competitive Enterprise Institute (CEI).
Instead of tackling obesity, soda taxes are more likely to hit the budgets of low-income families and have only a slight effect on the amount of soda consumed, says CEI Fellow Michelle Minton.
One of the main arguments favoring a soda tax is that putting up the price will reduce the amount people buy and in turn helps reduce levels of obesity. The problem with this approach, says Minton, is that consumers respond differently to price changes.
“Soda taxes are a stealth tax against middle class and especially lower income people,” said Minton. “Faced with a new tax on soda, some consumers may shift their calorie indulgences to other foods or drinks, some may cut back on other grocery purchases, and others will just pay the tax to get their favorite soda.”
Read the full article at The Daily Caller.