May 15, 2019

TAX WHAT YOU DON'T WANT:

Association of a Beverage Tax on Sugar-Sweetened and Artificially Sweetened Beverages With Changes in Beverage Prices and Sales at Chain Retailers in a Large Urban Setting (Christina A. Roberto, PhD1; Hannah G. Lawman, PhD2; Michael T. LeVasseur, PhD, MPH1; et al Nandita Mitra, PhD3; Ana Peterhans, MPH1; Bradley Herring, PhD4; Sara N. Bleich, PhD5, 5/14/19, JAMA)

Question  What was the association between a beverage excise tax on sugar-sweetened and artificially sweetened beverages implemented in Philadelphia in 2017 with changes in beverage prices and volume of sales?

Findings  In this difference-in-differences analysis of retailer sales data in the year before and the year after implementation of an excise tax of 1.5 cents per ounce on sugar-sweetened and artificially sweetened beverages, the tax was associated with significant increases in price-per-ounce of 0.65 cents at supermarkets, 0.87 cents by mass merchandise stores, and 1.56 cents at pharmacies. Total volume sales of taxed beverages in Philadelphia decreased by 1.3 billion ounces after tax implementation (51%), but sales in Pennsylvania border zip codes increased by 308.2 million ounces, partially offsetting the decrease in Philadelphia's volume sales by 24.4%.

Meaning  A beverage excise tax on sugar-sweetened and artificially sweetened beverages in a large urban setting was associated with a significant increase in beverage prices and a significant reduction in volume sales of taxed beverages, although changes in sales volume were partially offset by purchases in neighboring areas.

Posted by at May 15, 2019 12:41 PM

  

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