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What do we know about Sugar- Click to edit Master title Sweetened Beverage Taxes? style Click to edit Master subtitle style Kristine Madsen, MD, MPH Childhood Obesity Conference, 2019 Outline Strategic Research How sugar-sweetened


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Click to edit Master subtitle style

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Kristine Madsen, MD, MPH Childhood Obesity Conference, 2019

What do we know about Sugar- Sweetened Beverage Taxes?

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 Strategic Research  How sugar-sweetened beverage (SSB) taxes work  Evidence to date on SSB taxes  Revisit strategy

Outline

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Click to edit Master subtitle style

Click to edit Master title style Strategic research

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0% 5% 10% 15% 20% 25% 30% 35% 40%

Adult Obesity and Diabetes in the U.S.

10 20 30 40 50 60 70 80 90 100

Economic inequity, 2010

The need for a strategy around obesity

OECD Wealth Distribution Database NHANES and CDC data

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Industry is far more strategic

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“… 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... ”

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Some educational messages from Coca-Cola

“Each morning in the open air, take exercise to help keep fit.”

  • 1938
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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

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Center for Science in the Public Interest.

Big Soda Lobbying and Ballot Spending, 2009-2016

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What’s our long game?

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 Control of infectious diseases  Widespread vaccination  Reductions in smoking  Motor-vehicle safety

Learning from public health successes in the U.S.

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 Highly credible scientific evidence  Laws and regulations

Ingredients of success for public health programs

Isaacs SL & Schroeder SA. The American Prospect, 2001.

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World map by www.freeworldmaps.net

Passage of Sugared Beverage Taxes Pre-2009 Pre-2009

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Passage of Sugared Beverage Taxes 2011 Pre-2009 2011

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Passage of Sugared Beverage Taxes 2012 Pre-2009 2011 2012

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Passage of Sugared Beverage Taxes 2013 Pre-2009 2011 2012 2013

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Passage of Sugared Beverage Taxes 2014 Pre-2009 2011 2012 2013 2014

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Passage of Sugared Beverage Taxes 2015 Pre-2009 2011 2012 2013 2014 2015

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Passage of Sugared Beverage Taxes 2016 Pre-2009 2011 2012 2013 2014 2015 2016

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Passage of Sugared Beverage Taxes 2017 Pre-2009 2011 2012 2013 2014 2015 2016 2017

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Passage of Sugared Beverage Taxes 2018 Pre-2009 2011 2012 2013 2014 2015 2016 2017 2018

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Berkeley – First city to pass a tax in the U.S.

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Click to edit Master subtitle style

Click to edit Master title style How SSB excise taxes work

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Presumed mechanism of SSB excise taxes

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

TAX PASS-THROUGH

Consumer Beha havior

  • rs

$1.62

Pay tax & raise price for retailers Raise prices for consumers Buy fewer SSBs Consume fewer SSBs

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Presumed mechanism of SSB excise tax

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

TAX PASS-THROUGH

Impr proved d public lic h health ealth

$1.62

Consumer Beha havior

  • rs
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Click to edit Master subtitle style

Click to edit Master title style Evidence on SSB taxes

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Presumed mechanism of SSB excise tax

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

Impr proved d public lic h health ealth

$1.62

TAX PASS-THROUGH

Consumer Beha havior

  • rs
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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

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Presumed mechanism of SSB excise tax

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

Impr proved d public lic h health ealth

$1.62

TAX PASS-THROUGH

Consumer Beha havior

  • rs
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  • 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.
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Presumed mechanism of SSB excise tax

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

Impr proved d public lic h health ealth

$1.62

TAX PASS-THROUGH

Consumer Beha havior

  • rs
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Mean change in consumption in low-income neighborhoods

  • ver first 3 years
  • f 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.

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 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.

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Presumed mechanism of SSB excise tax

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

Impr proved d public lic h health ealth

$1.62

TAX PASS-THROUGH

Consumer Beha havior

  • rs

Cross-border shopping

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 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.

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Cross-border shopping

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 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

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Presumed mechanism of SSB excise tax

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

Impr proved d public lic h health ealth

$1.62

Cross-border shopping Substitution

TAX PASS-THROUGH

Consumer Beha havior

  • rs
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 Robust economic research: no overall loss of jobs due to tobacco taxes  No effect on jobs or economy in Mexico after 2 years  No 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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Click to edit Master subtitle style

Click to edit Master title style Revisiting strategy

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 Distributors internalize societal costs of their products  Tax is passed through to higher shelf prices  People buy fewer sugar-sweetened beverages  No overall loss of jobs  Revenues can create greater health equity (up next!!)

What we know about SSB excise taxes

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 California’s ban  “Alternatives” to excise taxes

  • Education
  • Sales taxes…

Preemption – the next fight

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Presumed mechanism of SSB excise taxes

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

TAX PASS-THROUGH

Impr proved d public lic h health ealth Consumer er Beha havior

  • rs

$1.62

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Presumed mechanism of SSB excise taxes

Ret etaile ilers Sh Shelf elf P Price Dis istr tributors

$1.50 $1.62

TAX PASS-THROUGH

Impr proved d public lic h health ealth Consumer er Beha havior

  • rs

$1.62

sales

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Important points about sales taxes:

  • 1. Generally smaller than excise taxes
  • 2. Small to no impact on behaviors
  • 3. Paid directly by consumers

?

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Be willing to take action!!

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 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 46