Wednesday, October 13, 2010

Effectiveness of SSB taxing

There are doubts as to whether or not the implementation of SSB taxing would affect the overall consumption. Some people assert that they will be unscathed by the tax and it will have no impact on how much they drink. I believe the patterns of consumption due to an SSB tax will follow those of the cigarette tax. Once a tax was instilled per pack of cigarettes, the rate at which consumers purchased them declined sharply. The pattern of decreased consumption should hold true with SSBs as well. The tax would be one cent per ounce which is fairly hefty. That would lead to an increase of 68 cents per two liter bottle, a 12 cent increase for a can, and $1.44 increase for a 12 pack of cans. With the current condition of the economy, the amount of people that will be able to continue purchasing these beverages at these prices will not stay consistent with the amount of people purchasing them currently pre-tax.
We should follow the road the cigarette tax took because SSBs are just as unhealthy as cigarettes and pose an equal threat. The benefits from the tax will also be used in a way to help society, as did the cigarette tax.

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