In 2017, Cook County, Illinois decided to do
something to hopefully make its residents a little healthier. It implemented a
“soda tax” for four months. This tax applied to any drink sweetened with sugar
or artificially sweetened and was set at a penny per ounce, all in the hopes
that it would sway consumers to make healthier choices. The amazing thing is
that, according to sales data, the tax worked! Soda sales decreased by a
whopping 21% during the taxation period.
A study conducted by the University of Illinois
looked more closely at these results and what they might say about local
government's ability to protect its people against unhealthy lifestyles and
choices.
For accurate tracking, the study looked at the
quantity of drinks purchased before and after the now-repealed tax and also
compared the taxation purchases to the number of purchases made at the same
time last year. What it found was a major decrease in the purchase of taxed
beverages and no real change in the purchase of untaxed beverages, which
indicates that the reduced sales were likely directly tied to a tax avoidance
strategy and that at least some people may have turned to ordering their drinks
of choice online. Also of note is the fact that large-volume purchases, such as
cases of sugary drinks, were affected more than smaller purchases where the tax
was likely not as noticeable.
So, while these results aren’t perfect and
don’t indicate that everyone immediately stopped drinking soda due to taxation,
they do show that a soda tax can help to reduce people’s consumption of
bad-for-them-beverages and, by extension, improve their overall health.
Perhaps, with data like this on the table,
more counties and even states may adopt a similar tax! While only time will
tell whether or not this type of taxation will become a trend, you can prepare
yourself by ditching bad habits that might affect your wallet if a tax were to
come into play. Your body and your wallet will thank you for it!
