Soda taxes reduce sales in Philadelphia by sending buyers to neighboring areas.
In prior posts, I have been quite skeptical of sin taxes such as sugar or soda taxes. I personally think that they will hurt those who can barely afford them and drive people to buy them elsewhere. I wrote about it in Sugar Tax: Would it decrease obesity? I also believe that it might reduce sales, and that is supported by my article entitled “Soda Taxes Can Change Behavior.” So what does the new research show?