Sugary Drink Taxes

Sugary drinks, including sodas, fruit drinks, sports drinks, ready-to-drink tea and coffee, enhanced water, and energy drinks, are beverages with added caloric sweeteners. These drinks are a leading source of added sugars in the American diet and contribute significantly to "empty" calorie intake. Excessive consumption of sugary drinks has been linked to weight gain,  type 2 diabetes, cardiovascular disease, dental caries, and osteoporosis. To address these public health concerns, many policymakers have advocated for targeted taxes on sugary drinks. . Such taxes, now implemented in more than 60 countries and 8 localities across the U.S., aim to discourage consumption by increasing prices. Evaluations of these policies consistently demonstrate reductions in sugary drink purchases, alongside the generation of significant tax revenue that can support additional public health initiatives. 

Tax Policies and Sugary Drinks

Taxation has emerged as a promising strategy to promote healthier food and beverage choices by raising the relative prices of unhealthy products. Current policy proposals focus on two primary approaches. 

  1. Nutrient-Based Taxes: These target foods with poor nutrient profiles, such as those high in saturated fat, sodium, or added sugars. 
  2. Category-Based Taxes: These focus on specific product categories, such as sugary drinks, energy-dense foods, or snacks. 

Both approaches rely on evidence linking food prices to consumer behavior. Research indicates that higher prices on unhealthy products can lead to reduced purchases and improved dietary patterns. 

The Rudd Center is dedicated to advancing understanding of how food pricing influences consumer choices, providing evidence to guide effective policy design. For instance, our team conducted one of the earliest systematic literature reviews on the impact of food prices on consumption patterns, laying the groundwork for future research and policy development. 

Resources


Tax Revenue Calculator

The Revenue Calculator for Sugary Drink Taxes estimate potential national or state revenue from a volume-based excise tax on sugary drinks- beverages with added caloric sweeteners. The calculator does not include zero-calorie or reduced-calorie beverages, such as diet drinks, were not in its estimation. Note the calculator is provided with archived estimates from prior years. Estimates for future years are under consideration. 

Centering Sugary Drink Taxes in Equity

In October 2019, more than 20 national experts in sugary drink taxes and equity came together as the Sugary Drink Tax Equity Workgroup to develop recommendations on how to design equitable sugary drink tax policy. Sugary drink taxes are effective in raising revenues to promote health equity and address important needs in communities disproportionately affected by diabetes and other health conditions caused by sugary drinks. They reduce sales of sugary drinks. They need to promote equity.

After engaging in a year-long participatory process, the Workgroup has released its policy recommendations in the form of a full report, brief, and one-page infographic. The recommendations will help sugary drink tax advocates and policymakers design sugary drink taxes that are centered in equity and benefit communities most negatively impacted by the beverage industry and sugary drink products.

Drafting Sugary Drink Tax Legislation: Investing Revenues to Advance Equity

Sugary Drink FACTS

Explore this website to learn all about children’s drinks - including sweetened fruit drinks and waters and unsweetened 100% juice - and other sugary drinks, such as soda, sports drinks, iced teas, and energy drinks. You’ll find a comprehensive analysis of the ingredients in these drinks and how they are marketed, including on-package claims and advertising.

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Howard County Unsweetened

Howard County parents are concerned about sugary drinks — all that sugar, the empty calories, and the potential for severe chronic health problems. Things are changing. Soda sales in the County are down 20%. Howard County Unsweetened wants to make it easier for parents to serve the best stuff to their kids. Their Better Beverage Finder lets you find beverages any parent can love. The Better Choices Coalition works to make healthy food and drink more available. Check out their videos, too.

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