Impact of Targeted Beverage Taxes on Higher- and Lower-Income Households

BACKGROUND: Sugar-sweetened beverage (SSB) taxes are increasingly being considered as a strategy for addressing the obesity epidemic. We sought to investigate the differential impact of targeted beverage taxes on higher- and lower-income households. METHODS: This analysis relied on data from the 2006 Nielsen Homescan panel, which included a national sample of households that scan and transmit their store-bought food and beverage purchases weekly for a 12-month period. We assessed associations among beverage prices, energy intake, and weight using multivariate regression models. RESULTS: A 20% and 40% tax on carbonated SSBs only would reduce beverage purchases by a mean (SE) of 4. 2 (1. 6) and 7. 8 (2. 8) kcal/d per person, respectively. Extending the tax to all SSBs generates mean (SE) reductions of 7. 0 (1. 9) and 12. 4 (3. 4) kcal/d per person, respectively. Estimated mean (SE) weight losses resulting from a 20% and 40% tax on all SSBs are 0. 32 (0. 09) and 0. 59 (0. 16) kg/y per person, respectively. The 40% tax on SSBs, which costs a mean (SE) of 28. 48 (0. 87) per household per year, would generate 2. 5 billion (77. 5 million) in tax revenue, with the largest share coming from high-income households. CONCLUSIONS: Large taxes on SSBs have the potential to positively influence weight outcomes, especially for middle-income households. These taxes would also generate substantial revenue that could be used to fund obesity prevention programs or for other causes.