Promoting Consumption of Healthier Beverages While Supporting Jobs and Businesses
Following adoption of the nation's first soda tax in Berkeley, California, a PHI analysis demonstrated that after implementing the tax, 469 food sector jobs in Berkeley were created and revenues increased, contradicting soda industry claims that the tax would hurt businesses and cost the city jobs.
469 new food service jobs created in Berkeley, CA following adoption of the nation’s first soda tax
15% increase in food sector sales tax revenue in Berkeley over the same time period
Following PI’s work to demonstrate the success of Berkeley, California’s soda tax, the first tax on sugar-sweetened beverages in the country, PHI researchers looked at the impact of the tax on jobs and food business revenues.
The May 2017 PHI analysis found that a year and a half after passage of the Berkeley tax, food sector sales tax revenue rose by 15% in the city, and 469 new food sector jobs were created—an increase of 7.2%.
The findings directly rebut claims by the soda industry trade group the American Beverage Association, which states in its anti-tax campaigns that soda taxes will hurt businesses and cost jobs.