Berkeley Soda Tax Cuts Consumption

The Recently enacted soda tax in the city of Berkeley appears to be working.

            A new study by researchers at the University of California has concluded that the tax, a penny per fluid ounce on drinks enacted by voters in 2014, cut consumption within the city limits among low-income residents by 20%. Consumption rates were compared with nearby Oakland and San Francisco, which did not impose taxes on sugary drinks.

            Researchers believe the reduction in sugary drinks in Berkeley could help cut the rates of obesity and diabetes over the long run. But some economists, surprised by the relatively steep drop tied to a modest price increase, noted that the margin for error was relatively high.