Click to edit Master subtitle style
Click to edit Master title styleKristine Madsen, MD, MPHChildhood Obesity Conference, 2019
What do we know about Sugar-Sweetened Beverage Taxes?
Strategic ResearchHow sugar-sweetened beverage (SSB) taxes work Evidence to date on SSB taxesRevisit strategy
Outline
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Strategic research
0%
5%
10%
15%
20%
25%
30%
35%
40%Adult Obesity and Diabetes in the U.S.
0102030405060708090
100Economic inequity, 2010
The need for a strategy around obesity
OECD Wealth Distribution DatabaseNHANES and CDC data
Industry is far more strategic
“… Instead of imposing regressive taxes, government should work together with industry to help educate people about how to moderate their calories and achieve a balanced lifestyle... ”
Some educational messages from Coca-Cola
“Each morning in the open air, take exercise to help keep fit.” - 1938
Coke’s Chief Health and Science Officer: “Akin to a political
campaign, we will develop, deploy and evolve a powerful and multi-
faceted strategy to counter radical organizations and their
proponents.” 2015
Center for Science in the Public Interest.
Big Soda Lobbying and Ballot Spending, 2009-2016
What’s our long game?
Control of infectious diseasesWidespread vaccinationReductions in smokingMotor-vehicle safety
Learning from public health successes in the U.S.
Highly credible scientific evidence Laws and regulations
Ingredients of success for public health programs
Isaacs SL & Schroeder SA. The American Prospect, 2001.
World map by www.freeworldmaps.net
Passage of Sugared Beverage Taxes Pre-2009
Pre-2009
Passage of Sugared Beverage Taxes 2011
Pre-2009 2011
Passage of Sugared Beverage Taxes 2012
Pre-2009 2011 2012
Passage of Sugared Beverage Taxes 2013
Pre-2009 2011 2012 2013
Passage of Sugared Beverage Taxes 2014
Pre-2009 2011 2012 2013 2014
Passage of Sugared Beverage Taxes 2015
Pre-2009 2011 2012 2013 2014 2015
Passage of Sugared Beverage Taxes 2016
Pre-2009 2011 2012 2013 2014 2015 2016
Passage of Sugared Beverage Taxes 2017
Pre-2009 2011 2012 2013 2014 2015 2016 2017
Passage of Sugared Beverage Taxes 2018
Pre-2009 2011 2012 2013 2014 2015 2016 2017 2018
Berkeley – First city to pass a tax in the U.S.
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How SSB excise taxes work
Presumed mechanism of SSB excise taxes
Retailers Shelf PriceDistributors
$1.50$1.62
TAX PASS-THROUGHConsumer Behaviors
$1.62
Pay tax & raise price for retailers
Raise prices for
consumers
Buy fewer SSBs
Consume fewer SSBs
Presumed mechanism of SSB excise tax
Retailers Shelf PriceDistributors
$1.50$1.62
TAX PASS-THROUGH
Improved public health
$1.62
Consumer Behaviors
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Evidence on SSB taxes
Presumed mechanism of SSB excise tax
Retailers Shelf PriceDistributors
$1.50$1.62
Improved public health
$1.62
TAX PASS-THROUGHConsumer Behaviors
0% 50% 100% 150% 200% 250%
San Francisco
Oakland
Philadelphia
Berkeley
Mexico
Range of tax pass through
Colchero A et al. PLoS One, 2015. Silver L et al. PLoS One, 2017. Cawley J et al. JAMA, 2018. Roberto C et al. JAMA, 2019. Falbe et al. Forthcoming
Presumed mechanism of SSB excise tax
Retailers Shelf PriceDistributors
$1.50$1.62
Improved public health
$1.62
TAX PASS-THROUGHConsumer Behaviors
-60% -50% -40% -30% -20% -10% 0%
Oakland
Philadelphia
Berkeley
Mexico
Relative reduction in sales of SSBs
Colchero A et al. Health Affairs, 2017. Silver L et al. PLoS One, 2017. Roberto C et al. JAMA, 2019. White J et al. Forthcoming.
Presumed mechanism of SSB excise tax
Retailers Shelf PriceDistributors
$1.50$1.62
Improved public health
$1.62
TAX PASS-THROUGHConsumer Behaviors
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Mean change in consumption in low-income neighborhoods over first 3 years of Berkeley’s tax
Total SSBs
v b
4%
-13%
-9%
-18%
17%
5%
0%
29%
-70%
-36%
-51%
-60%
-54%
-52%
Berkeley Oakland/San Francisco
Regular soda
Sports drinks
Energy drinks
Fruit drinks
Sweetened coffee/tea
Water
p < 0.001
p = 0.001
p = 0.001
p = 0.001
p = 0.003
Lee et al. AJPH, 2019.
1-year results from Berkeley showed no decline in consumption
2-month results from Philadelphia suggest 26% decline in consumption
SSB consumption
Silver L. PLoS One, 2017. Zhong Y et al. Am J Prev Med, 2018.
Presumed mechanism of SSB excise tax
Retailers Shelf PriceDistributors
$1.50$1.62
Improved public health
$1.62
TAX PASS-THROUGHConsumer Behaviors
Cross-border shopping
Within Philadelphia, -1.261 billion ounces
In bordering zip codes, +0.308 billion ounces
Estimate 25% of SSB reduction in Philly offset by cross-border shopping
Cross-border shopping
Roberto C et al. JAMA, 2019.
Cross-border shopping
Interviews with over 100 randomly selected retailers in San Francisco, Oakland and Berkeley
53% support a statewide tax Population health benefits Equity for businesses
Geography of taxes and equity
Presumed mechanism of SSB excise tax
Retailers Shelf PriceDistributors
$1.50$1.62
Improved public health
$1.62
Cross-border shopping Substitution
TAX PASS-THROUGHConsumer Behaviors
Robust economic research: no overall loss of jobs due to tobacco taxes
No effect on jobs or economy in Mexico after 2 yearsNo effect on employment in Philadelphia Expected to save $ in health care
Expected overall economic impacts
Guerrero-López CM et al. Prev Med, 2017. Lawman HG et al. PLoS One, 2019. Chaloupka F et al. Annu Rev Public Health, 2019.
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Revisiting strategy
Distributors internalize societal costs of their products Tax is passed through to higher shelf prices People buy fewer sugar-sweetened beveragesNo overall loss of jobsRevenues can create greater health equity (up next!!)
What we know about SSB excise taxes
California’s ban “Alternatives” to excise taxes Education Sales taxes…
Preemption – the next fight
Presumed mechanism of SSB excise taxes
Retailers Shelf PriceDistributors
$1.50$1.62
TAX PASS-THROUGH
Improved public health
ConsumerBehaviors
$1.62
Presumed mechanism of SSB excise taxes
Retailers Shelf PriceDistributors
$1.50$1.62
TAX PASS-THROUGH
Improved public health
ConsumerBehaviors
$1.62
sales
?Important points about sales taxes: 1. Generally smaller than excise taxes2. Small to no impact on behaviors3. Paid directly by consumers
?
Be willing to take action!!
Ana Ibarra-Castro Ben King Christina Becker Hannah Thompson Jen Falbe Jenny Linchey Julián Ponce Karen Sokal-Gutierrez Matt Lee Nadia Rojas Natalya Goode Somanette Rivas Tara Benesch
Thank you
All of our wonderful students and volunteers!
San Francisco Department of Public Health
City of Berkeley Johns Hopkins Global Obesity
Prevention Center The California Endowment NIH/NHLBI
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