Taxing sugar levels in carbonated drinks can prevent 2 million cases of diabetes and heart disease in the United States, as well as premature deaths from these diseases.
At various levels in the United States, sugar tax is a potential way to improve public health. A new study showed that taxes on sugary drinks can lead to a significant improvement in the status of Americans everywhere and reduce health care costs, but the size of the benefit depends on the structure of the tax.
Many taxes on sugar-containing drinks are based on volume, that is, a tax can be, for example, 2 cents per ounce of the total beverage volume or 3 cents per teaspoon of sugar. This is aimed at reducing the consumption of the product by increasing its value. San Francisco introduced such a tax scheme.
However, the multilevel tax that applies in the United Kingdom, Chile, and France may have different levels for volumes, depending on the sugar content in drinks per ounce of its volume. There are also taxes based on the absolute sugar content of a product that exists in South Africa, Sri Lanka and Mauritius. They are calculated as tax per gram of added sugar. The last two types of taxes are considered more effective.