SF's Sugary Drink Tax
instapanel.com
instapanel.com
But luckily, all their activity convinces me that the proposition will really work. The soda industry has spent FIFTEEN DOLLARS per SF voter on this. [1] This tells me that it's not just about San Francisco. They are scared that if it works here, others will soon follow suit, reducing their profits. So it seems they believe that this sort of tax will have a substantial impact on soda consumption. They're telling me that voting for E means a chance of improving the entire country's health. So I'm definitely in.
[1] http://www.sfgate.com/bayarea/article/Soda-industry-spends-7...
But what if the book industry spent $15/SF voter to stop some law that applied to books? Perhaps that law would be harmful to book publishers AND to society overall.
It's amazing how soda companies have come to be seen as evil so quickly.
Say, I see you work for Instapanel. Who paid for this? And who pays for Instapanel in general? The book thing seems like an odd enough comparison that I'm wondering where your interests lie.
[1] http://www.cdc.gov/chronicdisease/resources/publications/aag...
I went in strongly in favor of Prop E, I came out as convinced that obesity and soda are bad, but less convinced that this law was a good way to address the issue. I'll probably still vote "Yes" on Prop E, but it was fun to hear the other side out.
Regardless, I'm going to vote yes; it really should be a luxury, we made a mistake back when we let it become a default option.
That means there's no incentive for beverage makers to reduce sugars in popular drinks over time, to adjust people's palates towards something more normal.
Syrups added to flavor drinks are exempt. So maybe big drinks just adopt the tea/coffee model and involve a little more consumer stirring.
That said, maybe this breaks some new ground, and the model regulation improves upon it.
When I worked at Climate Corp, it was pretty interesting to hear the (nearly universally) Republican farmers argue for why there should be farm subsidies. About half wouldn't even try to justify it, and just said if the money's there I'll take it.
I'd respect those people more than the people who tried to argue it, as it's a case of don't hate the player hate the game (unless the player is rigging the game of course).
At least they are honest.
Sugar producers care more about the issue (because they get all the subsidies) than voters (for whom the subsidies are a small percentage of their tax bill). Plus, the subsidies represent a positive return on lobbying dollars, because there are a relatively small number of people to bribe. Sorry, I mean support.
This, however, was put on the ballot by local supervisors, and will be voted on by SF's population at large. That's a much harder dynamic to influence with money. Not that they aren't trying.
http://www.odwalla.com/products/smoothies/strawberry-c-monst...
Edit: Oops that does have added sugar so it will also be taxed.
Edit 2: So it will not be taxed because it does not use artificial flavors? So you can put as much sugar as you want in something as long as it does not contain artificial flavoring? So is this actually an artificially flavored drink tax?
Similarly, diet sodas - which do contain artificial flavors - are similarly exempt. You can read the ballot measure in full here:
http://ballotpedia.org/City_of_San_Francisco_Sugary_Drink_Ta...
So this has a bunch of High Fructose Corn syrup
http://www.foodfacts.com/ci/nutritionfacts/Beverages-non-mil...
Does that count as exempt?
What exactly does "natural fruit and vegetable juice" actually mean? Concentrated orange juice often has citric acid added to it.
Tropicana Orange Juice from Concentrate has added "natural flavors". Does that make it taxed?
http://www.tropicana.com/#/trop_products/productsLanding.swf...
Odwalla's Strawberry C Monster contains "cane sugar" as an ingredient. http://www.odwalla.com/products/smoothies/strawberry-c-monst...
My read would be that once you add cane sugar to something, it no longer contains "only fruit juice," but maybe that's not how it would work in practice. (hiou claims Odwalla's exempt, I don't know what that's based on though, maybe hiou meant one of the other Odwalla drinks that don't have added sugars, not sure).
Generally when you run an in-person focus group or user interview, you're combining the interview time with the "watching" time since you're there in the same room. With instapanel, it's definitely faster than doing the interviews yourself, but there's no forcing function to watch the videos.
Reminds me of how my dad stopped watching talks at Xerox PARC once they started webcasting them. Without needing to show up for the talk at a specific time, he could always say "I'll watch that later".
It's only SF so people will just drive to Daly City to stock up on soda. There are tons of other sugary products that won't be taxed - like milkshakes or candy. It's a tax at the distributor level, so small businesses will just get their soda from outside the city.
Are we so naive to think that until the entire country or the entire world decides to implement the same tax that nobody should attempt to make progress?
I assume your reference to "progress" is based on an assumption that the tax will produce the intended effect of forcing individuals to make healthier choices, but there's no evidence that this is the case. In fact, there's evidence that many consumers will just substitute in untaxed high calorie foods[1].
[1] http://www.rti.org/newsroom/news.cfm?obj=5C84B2F7-5056-B100-...
In other words, "support soda taxes because cigarette taxes!" is not an argument based on any hard data. If you're going to argue for the use of taxation to force behavior, as a starting point you should have real evidence that the specific tax in question has a high likelihood of producing the specific behavior you're trying to change. Relying on some other tax that may have influenced another behavior is simply specious.
[1] http://tigger.uic.edu/~fjc/Presentations/Papers/taxes_consum...
Also, if your view is "before you can do an experiment you must have hard data to prove the experiment will work" then it sounds like you aren't getting many experiments done.
> The study, published online in the American Journal of Agricultural Economics, found that a half-cent per ounce increase in sugar-sweetened beverage prices, which adds up to about ten cents on a typical 20-ounce bottle of soda, could reduce total calories from the 23 foods and beverages examined under the study.
> However, researchers found, the reduction in sugary beverages due to a soda tax would likely lead consumers to substitute for those beverage calories by increasing their calorie, salt and fat intake from untaxed foods and beverages.
> “Instituting a sugary beverage tax may be an appealing public policy option to curb obesity, but it’s not as easy to use taxes to curb obesity as it is with smoking,” said Chen Zhen, Ph.D., a research economist at RTI, and the paper’s lead author. “Consumers can simply substitute an untaxed high calorie food for a taxed one. And as we know, reducing calories is just one of many ways to promoting healthy eating and reducing nutrition-related chronic disease.”
Other studies[1] have come to similar conclusions, and note that much of the research predicting significant reductions in obesity are flawed because they failed to look at substitution.
If you are genuinely interested in implementing a tax ("experiment") that actually has a chance of producing the intended outcome irrespective of cost, the first study suggested that instead of taxing based on ounces, a tax based on calories would address some of the fundamental flaws in ounce-based taxes like those proposed in Prop E.
The news article you link to is about two attempts at this in the 1990s, looks broadly, covers places with a very different food culture than San Francisco, and treats obesity as the only relevant health issue from sugar. So I would call it interesting, but not necessarily relevant.
Moreover, you seem to ignore that this is a process. If the soda tax doesn't work, then people will try other things. But this is the thing on the ballot, and the question isn't, "Is this the best possible thing to do?" It's, "Shall we try this next?"
http://www.rti.org/newsroom/news.cfm?obj=5C84B2F7-5056-B100-...
> The study, published online in the American Journal of Agricultural Economics, found that a half-cent per ounce increase in sugar-sweetened beverage prices, which adds up to about ten cents on a typical 20-ounce bottle of soda, could reduce total calories from the 23 foods and beverages examined under the study.
> However, researchers found, the reduction in sugary beverages due to a soda tax would likely lead consumers to substitute for those beverage calories by increasing their calorie, salt and fat intake from untaxed foods and beverages.
> “Instituting a sugary beverage tax may be an appealing public policy option to curb obesity, but it’s not as easy to use taxes to curb obesity as it is with smoking,” said Chen Zhen, Ph.D., a research economist at RTI, and the paper’s lead author. “Consumers can simply substitute an untaxed high calorie food for a taxed one. And as we know, reducing calories is just one of many ways to promoting healthy eating and reducing nutrition-related chronic disease.”
http://ajae.oxfordjournals.org/content/early/2013/07/28/ajae...
Study name: Predicting the Effects of Sugar-Sweetened Beverage Taxes on Food and Beverage Demand in a Large Demand System
Study publication date: July 29, 2013
> I'm not going to read...
At this point I think it's fair to say that is precisely your problem.
https://news.ycombinator.com/item?id=8547734
Because I presume that's what you were referencing when you said, "Apparently you didn't read the study I linked to."
That study is titled "How Effective are Taxes in Reducing Tobacco Consumption?" and continues not to mention the word sugar. Probably because it is about tobacco.
You pointed to the efficacy of cigarette taxes in clear support of the Prop E tax ("Cigarette taxes are regressive and definitely represent progress. They were a big help in reducing smoking, and in turn reducing smoking-related health problems.").
I linked to multiple studies which found there was a strong likelihood consumers would simply substitute the taxed sugary beverages with untaxed foods that are just as unhealthy, calling into question the efficacy of such a tax.
I included a link to a study about cigarette taxes in support of my argument that "the problem with your comparison is that you assume the market for sugary drinks functions the same way the market for cigarettes does when, in fact, studies have not found the same type of substitution dynamic."
To make this simple for you:
1. Studies on sugary beverage taxes find strong substitution effects.
2. Studies on cigarette taxes do not find strong substitution effects.
Given this, your suggestion that taxes on sugary beverages are likely to have a similar level of efficacy to taxes on cigarettes is not congruent with the evidence. Instead of needing to explain this to you, you could have just read what I posted before responding to it. If you did that, you probably would have noticed what the lead researcher for one of the studies stated:
> “Instituting a sugary beverage tax may be an appealing public policy option to curb obesity, but it’s not as easy to use taxes to curb obesity as it is with smoking."
Good night.
> You pointed to the efficacy of cigarette taxes in clear support of the Prop E tax
No, I didn't.
You wrote "So a tax that is regressive represents 'progress'?"
I replied to that by giving an example of a regressive tax that represents progress. That's all. Your comment struck me as annoyingly glib, constructing a false contradiction through word games. Since cigarette taxes have been so successful, I thought it was a good counterexample to the false contradiction. Everything else you write is about what you read into my statement, not what I said.
But to address your point:
I agree that a sugary beverage tax in San Francisco could lead to substitution and no net health gain. But A) the circumstances are different enough (and the original sample size is small enough) that I'm happy to try it out to see what happens, and B) if it doesn't work like the proponents hope, I think that's fine because humans often have to try the obvious thing before they will try the less obvious thing.
I was questioning the validity of the arguments the parent commenter presented against Prop E.
Those are not arguments against the proposition based on its merits. They are arguments based on lack of universal implementation.
It doesn't matter how you feel about the actual proposition. I was claiming that the presented arguments were not convincing.
(I'm actually unsure how I feel about the proposition at this point, so I'm just curious to hear some more discussion about it.)
Wouldn't if be great if we can one day get back to having robotic milkmen deliver milk in re-usable bottles?
The only question I care about here is, "Is this going to improve the situation enough to justify the work?" So far, it looks like yes.