Kelly D. Brownell and Thomas R. Freiden, “Ounces of Prevention – The Public Policy Case for Taxes on Sugared Beverages,” The New England Journal of Medicine, April 30, 2009

“Because excess consumption of unhealthful foods underlies many leading causes of death, food taxes at the local, state and national levels are likely to remain part of political and public discourse,” claims this editorial co-authored by Yale University’s Rudd Center for Food Policy and Obesity Director Kelly Brownell and New York City Health Commissioner Thomas Freiden, who write in favor of a penny-per-ounce
excise tax on sugar-sweetened beverages. Describing these products as “the single largest driver of the obesity epidemic,” the article compares a soft drink tax to similar taxes on tobacco “that have been highly effective in reducing consumption.”

The authors specifically argue that an excise tax would help (i) reduce health care and other societal costs for obesity and diet-related diseases; (ii) correct an “informational asymmetry” between marketers and younger audiences, “who often cannot distinguish a television program from an advertisement”; and (iii) generate revenue, “which can further increase the societal benefits of a tax on soft drinks.” They also note that while a regressive sales tax would merely prompt consumers to switch to cheaper brands, “excise taxes structured as a fixed cost per ounce provide an incentive to buy less and hence would be much more effective in reducing consumption and improving health.” According to Brownell and Freiden, their proposed penny-per-ounce tax would ultimately “reduce consumption of sugared beverages by
more than 10 percent,” leading them to conclude that such government intervention is preferable to “education alone.”

Meanwhile, the legitimacy of taxing food items has drawn criticism from the public, politicians and industry stakeholders. American Beverage Association President Susan Neely reportedly questioned the impact of sugar-sweetened beverages on obesity rates, which continue to rise despite a decline in soft drink sales. “We agree that obesity is a serious and complex problem. It defies both science and common sense, however, to think singling out one product as a unique contributor to obesity will make a dent in the problem,” Neely was quoted as saying. See The New York Times, April 9, 2009.