Flat, falling soda tax revenues have both positive and negative impact

While research shows taxes on sweetened beverages like soda generally achieve their goal of reducing people’s consumption of these unhealthy products, experts say cities should consider the sustainability of such levies.

Only eight U.S. cities impose a tax on sugar-sweetened drinks. Proponents of those taxes say they help improve public health by reducing people’s consumption of sugar.

In large cities like Philadelphia, soda tax revenues may stabilize over time and serve as consistent funding sources, as residents who continue to buy soda are unlikely to leave the city limits to stock up, said Michael Lahr, co-author of the 2021 Rutgers University study.

City and State PA, October 8, 2024