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American Focus > Blog > Health and Wellness > Sweetened beverage taxes decrease consumption in lower-income households by nearly 50%, study finds
Health and Wellness

Sweetened beverage taxes decrease consumption in lower-income households by nearly 50%, study finds

Last updated: October 21, 2024 5:53 pm
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Sweetened beverage taxes decrease consumption in lower-income households by nearly 50%, study finds
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The implementation of taxes on sugar-sweetened beverages in eight cities across the United States is proving to be effective in reducing the consumption of these unhealthy drinks, according to a recent study by the University of Washington. These beverages have been linked to health issues such as obesity and Type 2 diabetes, making it crucial to address their consumption.

The study focused on the purchasing behavior of approximately 400 households in Seattle, San Francisco, Oakland, and Philadelphia, all of which recently introduced beverage taxes. Researchers found that lower-income households decreased their purchases of sweetened beverages by nearly 50% after the tax was implemented, while higher-income households saw an 18% reduction. This disparity in response is significant since lower-income individuals tend to consume these beverages at higher rates, leading to health disparities.

Melissa Knox, co-author and UW associate teaching professor of economics, emphasized the health benefits of reducing sugar intake, especially from sweetened beverages. These drinks provide little to no nutritional value and can have detrimental effects on health. The study revealed that lower-income households experienced a 22% increase in sweetened beverage prices post-tax, leading to a 47% decline in purchases. In contrast, higher-income households only saw an 11% price increase and an 18% reduction in purchases.

The research also highlighted that lower-income households were substituting untaxed beverages for sweetened ones, demonstrating a shift towards healthier alternatives. Policymakers are particularly interested in the response of lower-income consumers due to concerns about the regressive nature of these taxes. Previous studies from the UW have shown that lower-income households benefit more from the tax revenue, with annual net benefits ranging from $5.3 million to $16.4 million in lower-income communities.

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Furthermore, the study found that the tax was associated with declines in childhood body mass index in Seattle, indicating positive health outcomes. Jessica Jones-Smith, co-author and UW professor of health systems and population health, emphasized the potential for even greater health benefits for households with lower incomes.

Overall, the research suggests that sweetened beverage taxes are effective in reducing consumption, especially among lower-income households, and can help improve public health outcomes. By promoting healthier beverage choices and reducing the intake of sugary drinks, these taxes play a crucial role in addressing health disparities and promoting population health.

TAGGED:BeverageconsumptiondecreasefindshouseholdslowerincomeStudySweetenedTaxes
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