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The study compared the costs and sales of beverages in Philadelphia – following the application of the 1.5 cents per ounce tax – to Baltimore, which has a similar demographics but does not have the same sales tax. With the tax, the drinks in Philadelphia climbed from 5.43 cents an ounce in 2016 to 6.24 cents in 2017. In Baltimore, drinks went from 5.33 cents to just 5.50 cents.
The researchers found that sales of sweetened beverages had declined in Philadelphia following the imposition of the tax, but that sales of beverages in towns and nearby counties without tax increased. This suggests that people may be traveling for their soda at a discounted price. By adjusting this change, the researchers found that sales had dropped by 38% in total.
"We tried, and failed, to reduce the consumption of sugary drinks through education and individual choices," said Muth, who was the principal author of the policy statement published in the journal Pediatrics. "Just as policy changes were necessary and effective in reducing tobacco and alcohol consumption, we need changes that will help reduce the consumption of sugary drinks in children and adolescents."
Unlike other taxable communities, Philadelphia has not seen an increase in sales of untaxed beverages such as bottled water. The researchers also found that people did not trade their usual soda for liquid and powdered drink concentrates.
This study did not examine changes in the consumption of drinks or the health effects associated with the tax.
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