Sugary soft drinks are not helping the global obesity pandemic. In fact, they may be exacerbating it. That’s why taxing sugary beverages is something being contemplated by governments across the globe.
An experiment conducted by Dutch scientists used 3D simulation of a supermarket simulate a shopping experience and measure it. A group of 100 volunteers was randomly divided into 2. One half saw sodas with 6% sales tax (standard Dutch tax), the others saw prices which included a 19% tax. Both groups were allotted the same total budget.
The group with the higher tax rate bought one quart less soft drinks per week. Interestingly, they did not spend the difference buying more of other “vices” such as candy or alcohol.
Evidently the economic laws of pricing still work.
What are the chances of a serious sugar tax here in America?