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Penny-Per-Ounce Tax on SSBs Would Cut Health and Cost Burdens of Diabetes

2012

Sugar-sweetened beverages are a major contributor to the U.S. obesity and diabetes epidemics. This analyses leveraged a published simulation model to examine the potential impact on health and health spending of a nationwide penny-per-ounce excise tax on these beverages. 

The analysis found that the tax would reduce consumption of these beverages by 15 percent among adults ages 25-64. Over the period 2010-20, the tax was estimated to prevent 2.4 million diabetes person-years, 95,000 coronary heart events, 8,000 strokes, and 26,000 premature deaths, while avoiding more than $17 billion in medical costs.

The authors concluded that in addition to generating approximately $13 billion in annual tax revenue, a modest tax on sugar-sweetened beverages could reduce the adverse health and cost burdens of obesity, diabetes, and cardiovascular diseases.

 

Source:

Wang YC, Coxson P, Shen Y-M et al. A Penny-Per-Ounce Tax on Sugar-Sweetened Beverages Would Cut Health and Cost Burdens of Diabetes. Health Affairs 2012; 31 (1): 199-207. https://doi.org/10.1377/hlthaff.2011.0410