About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


1 Justin Ross & Felipe Lozano-Rojas, Are Sugar-Sweetened Beverage Taxes Regressive: Evidence from Household Retail Purchases 1 (2018)

handle is hein.taxfoundation/asgswbv0001 and id is 1 raw text is: Are Sugar-Sweetened Beverage Taxes Regressive? Evidence from Household Retail Purchases FISCAL Justin Ross FACT Associate Professor of Public Finance and Economics, School of Public and Environmental No. 592 Affairs, Indiana University, Bloomington, IN June 2018 Felipe Lozano-Rojas School of Public and Environmental Affairs, Indiana University, Bloomington, IN Key Findings: * Taxes on sugar-sweetened beverages are proposed with the promise to improve public health outcomes, but they come with equity concerns because of their regressive nature. * We use Nielsen consumption data to explore the relationship between household income and measures of sugar-sweetened beverage consumption by expenditures and fluid ounces. * If a nationwide tax were levied on sugar-sweetened beverages, about two- thirds of the revenues would be derived from middle-income households between $20,000 and $100,000, assuming these income groups would have similar behavioral adjustments to such a tax. * For an excise tax based on fluid ounces, 78 percent of the tax collections would come from households with income under $100,000. * The share of household income devoted to expenditures on sugar-sweetened drinks decreases by about 0.01 percent for every 1 percent increase in The Tax Foundation is the nation's income, implying a regressive expenditure pattern. leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) nonprofit organization. @2018 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org