Sugary drink tax models show health gains, cost reductions, but vary by tax design- Data correction

Sugary Drink

Boston researchers created a nationally representative microsimulation model to test three types of taxation on sugary drinks: a flat “volume tax” by drink volume ($0.01 per ounce), the only type used in U.S. cities to-date; a “tiered sugar content tax” by 3 levels of sugar content (ranging from $0.00 for less than 5 grams of added sugars per 8 ounces, to $0.02 per ounce of added sugars for more than 20 grams of added sugars per 8 ounces); and a “fixed sugar content tax” by absolute sugar content ($0.01 per teaspoon of added sugars, regardless of the number of ounces).  

Under the simulation scenario, the researchers found all three tax structures would generate tax revenue, lower health care costs and prevent cardiovascular disease events and diabetes cases. However, the tiered tax and sugar content tax could generate the largest health gains and cost savings. Any of the tax designs could be effective public health policy tools that may be able to reduce consumption of sugary drinks, and thus improve health and overall well-being, the researchers noted.

Release Date