Sugar Tax Will Save American Kids

November 4, 2015 Taxation in USA

WASHINGTON D.C. – Implementing a tax on sugary drinks and removing tax deductions available to food makers in the USA could prevent 706 000 cases of obesity, while also saving billions in healthcare costs.

A tax on sugary beverages in the USA could prevent more than half a million cases of obesity among children, and could save more than 30 times what it would cost to implement, according to the results of a new study published in the academic journal Health Affairs.

It was found that a one-cent-per-ounce tax on sugar laden beverages would raise the price of an average soda by approximately 16 percent, resulting in reduced consumption.

The reduced consumption will result in 576 000 less cases of childhood obesity, and, for each dollar spent implementing the policy approximately USD 30.78 would be saved in medical costs, a total of approximately USD 14.2 billion over the following 10 years.

Further it was proposed that disallowing food makers from deducting their advertising costs from their corporate tax obligations would reduce the instance of obesity by 130 000, and would save USD 32.53 per dollar that it would cost to implement.

Photo By: Melissa Wiese