Excise Tax

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Kristine A. Madsen - One of the best experts on this subject based on the ideXlab platform.

  • implementation of the first us sugar sweetened beverage Tax in berkeley ca 2015 2019
    American Journal of Public Health, 2020
    Co-Authors: Jennifer Falbe, Anna H. Grummon, Nadia Rojas, Suzanne Ryanibarra, Lynn D Silver, Kristine A. Madsen
    Abstract:

    Objectives. To identify lessons learned from implementation of the nation’s first sugar-sweetened beverage (SSB) Excise Tax in 2015 in Berkeley, California.Methods. We interviewed city stakeholders...

  • impact of the berkeley Excise Tax on sugar sweetened beverage consumption
    American Journal of Public Health, 2016
    Co-Authors: Jennifer Falbe, Charles E. Mcculloch, Nadia Rojas, Hannah Thompson, Christina M Becker, Kristine A. Madsen
    Abstract:

    Objectives. To evaluate the impact of the Excise Tax on sugar-sweetened beverage (SSB) consumption in Berkeley, California, which became the first US jurisdiction to implement such a Tax ($0.01/oz) in March 2015.Methods. We used a repeated cross-sectional design to examine changes in pre- to postTax beverage consumption in low-income neighborhoods in Berkeley versus in the comparison cities of Oakland and San Francisco, California. A beverage frequency questionnaire was interviewer administered to 990 participants before the Tax and 1689 after the Tax (approximately 8 months after the vote and 4 months after implementation) to examine relative changes in consumption.Results. Consumption of SSBs decreased 21% in Berkeley and increased 4% in comparison cities (P = .046). Water consumption increased more in Berkeley (+63%) than in comparison cities (+19%; P < .01).Conclusions. Berkeley’s Excise Tax reduced SSB consumption in low-income neighborhoods. Evaluating SSB Taxes in other cities will improve understa...

  • higher retail prices of sugar sweetened beverages 3 months after implementation of an Excise Tax in berkeley california
    American Journal of Public Health, 2015
    Co-Authors: Jennifer Falbe, Anna H. Grummon, Nadia Rojas, Kristine A. Madsen
    Abstract:

    Objectives. We assessed the short-term ability to increase retail prices of the first US 1-cent-per-ounce Excise Tax on the distribution of sugar-sweetened beverages (SSBs), which was implemented in March 2015 by Berkeley, California.Methods. In 2014 and 2015, we examined pre- to postTax price changes of SSBs and non-SSBs in a variety of retailers in Berkeley and in the comparison cities Oakland and San Francisco, California. We examined price changes by beverage, brand, size, and retailer type.Results. For smaller beverages (≤ 33.8 oz), price increases (cents/oz) in Berkeley relative to those in comparison cities were 0.69 (95% confidence interval [CI] = 0.36, 1.03) for soda, 0.47 (95% CI = 0.08, 0.87) for fruit-flavored beverages, and 0.47 (95% CI = 0.25, 0.69) for SSBs overall. For 2-liter bottles and multipacks of soda, relative price increases were 0.46 (95% CI = 0.03, 0.89) and 0.49 (95% CI = 0.21, 0.77). We observed no relative price increases for nonTaxed beverages overall.Conclusions. Approximate...

Jennifer Falbe - One of the best experts on this subject based on the ideXlab platform.

  • implementation of the first us sugar sweetened beverage Tax in berkeley ca 2015 2019
    American Journal of Public Health, 2020
    Co-Authors: Jennifer Falbe, Anna H. Grummon, Nadia Rojas, Suzanne Ryanibarra, Lynn D Silver, Kristine A. Madsen
    Abstract:

    Objectives. To identify lessons learned from implementation of the nation’s first sugar-sweetened beverage (SSB) Excise Tax in 2015 in Berkeley, California.Methods. We interviewed city stakeholders...

  • impact of the berkeley Excise Tax on sugar sweetened beverage consumption
    American Journal of Public Health, 2016
    Co-Authors: Jennifer Falbe, Charles E. Mcculloch, Nadia Rojas, Hannah Thompson, Christina M Becker, Kristine A. Madsen
    Abstract:

    Objectives. To evaluate the impact of the Excise Tax on sugar-sweetened beverage (SSB) consumption in Berkeley, California, which became the first US jurisdiction to implement such a Tax ($0.01/oz) in March 2015.Methods. We used a repeated cross-sectional design to examine changes in pre- to postTax beverage consumption in low-income neighborhoods in Berkeley versus in the comparison cities of Oakland and San Francisco, California. A beverage frequency questionnaire was interviewer administered to 990 participants before the Tax and 1689 after the Tax (approximately 8 months after the vote and 4 months after implementation) to examine relative changes in consumption.Results. Consumption of SSBs decreased 21% in Berkeley and increased 4% in comparison cities (P = .046). Water consumption increased more in Berkeley (+63%) than in comparison cities (+19%; P < .01).Conclusions. Berkeley’s Excise Tax reduced SSB consumption in low-income neighborhoods. Evaluating SSB Taxes in other cities will improve understa...

  • higher retail prices of sugar sweetened beverages 3 months after implementation of an Excise Tax in berkeley california
    American Journal of Public Health, 2015
    Co-Authors: Jennifer Falbe, Anna H. Grummon, Nadia Rojas, Kristine A. Madsen
    Abstract:

    Objectives. We assessed the short-term ability to increase retail prices of the first US 1-cent-per-ounce Excise Tax on the distribution of sugar-sweetened beverages (SSBs), which was implemented in March 2015 by Berkeley, California.Methods. In 2014 and 2015, we examined pre- to postTax price changes of SSBs and non-SSBs in a variety of retailers in Berkeley and in the comparison cities Oakland and San Francisco, California. We examined price changes by beverage, brand, size, and retailer type.Results. For smaller beverages (≤ 33.8 oz), price increases (cents/oz) in Berkeley relative to those in comparison cities were 0.69 (95% confidence interval [CI] = 0.36, 1.03) for soda, 0.47 (95% CI = 0.08, 0.87) for fruit-flavored beverages, and 0.47 (95% CI = 0.25, 0.69) for SSBs overall. For 2-liter bottles and multipacks of soda, relative price increases were 0.46 (95% CI = 0.03, 0.89) and 0.49 (95% CI = 0.21, 0.77). We observed no relative price increases for nonTaxed beverages overall.Conclusions. Approximate...

Arantxa M Colchero - One of the best experts on this subject based on the ideXlab platform.

  • in mexico evidence of sustained consumer response two years after implementing a sugar sweetened beverage Tax
    Health Affairs, 2017
    Co-Authors: Arantxa M Colchero, Juan Riveradommarco, Barry M Popkin, Shu Wen Ng
    Abstract:

    Mexico implemented a 1 peso per liter Excise Tax on sugar-sweetened beverages on January 1, 2014, and a previous study found a 6 percent reduction in purchases of Taxed beverages in 2014. In this s...

  • beverage purchases from stores in mexico under the Excise Tax on sugar sweetened beverages observational study
    BMJ, 2016
    Co-Authors: Arantxa M Colchero, Barry M Popkin, Juan A Rivera, Shu Wen Ng
    Abstract:

    Study question  What has been the effect on purchases of beverages from stores in Mexico one year after implementation of the Excise Tax on sugar sweetened beverages? Methods  In this observational study the authors used data on the purchase of beverages in Mexico from January 2012 to December 2014 from an unbalanced panel of 6253 households providing 205 112 observations in 53 cities with more than 50 000 inhabitants. To test whether the post-Tax trend in purchases was significantly different from the preTax trend, the authors used a difference in difference fixed effects model, which adjusts for both macroeconomic variables that can affect the purchase of beverages over time, and pre-existing trends. The variables used in the analysis included demographic information on household composition (age and sex of household members) and socioeconomic status (low, middle, and high). The authors compared the predicted volumes (mL/capita/day) of Taxed and unTaxed beverages purchased in 2014—the observed post-Tax period—with the estimated volumes that would have been purchased if the Tax had not been implemented (counterfactual) based on preTax trends. Study answer and limitations  Relative to the counterfactual in 2014, purchases of Taxed beverages decreased by an average of 6% (−12 mL/capita/day), and decreased at an increasing rate up to a 12% decline by December 2014. All three socioeconomic groups reduced purchases of Taxed beverages, but reductions were higher among the households of low socioeconomic status, averaging a 9% decline during 2014, and up to a 17% decrease by December 2014 compared with preTax trends. Purchases of unTaxed beverages were 4% (36 mL/capita/day) higher than the counterfactual, mainly driven by an increase in purchases of bottled plain water. What this study adds  The Tax on sugar sweetened beverages was associated with reductions in purchases of Taxed beverages and increases in purchases of unTaxed beverages. Continued monitoring is needed to understand purchases longer term, potential substitutions, and health implications. Funding, competing interests, data sharing  This work was supported by grants from Bloomberg Philanthropies and the Robert Wood Johnson Foundation and by the Instituto Nacional de Salud Publica and the Carolina Population Center. The authors have no competing interests. No additional data are available.

  • changes in prices after an Excise Tax to sweetened sugar beverages was implemented in mexico evidence from urban areas
    PLOS ONE, 2015
    Co-Authors: Arantxa M Colchero, Juan Carlos Salgado, Mishel Unarmunguia, Mariana Molina, Juan Riveradommarco
    Abstract:

    In 2014 an Excise Tax to non-alcoholic sweetened beverages (SSB) was implemented in Mexico. The objective of this paper is to study whether and to what degree these Taxes passed-through onto SSB prices in urban areas overall and by region, type of beverage and package size. Prices were obtained from the National Institute of Statistics and Geography from 2011 to 2014. We applied a pre-post quasi-experimental approach using fixed effects models. In sensitivity analysis we applied other model specifications to test the robustness of the findings and we also present weighted estimations based on household purchases. The dependent variables are real prices of a specific beverage category; the main independent variables are dummies for each month of 2014, and the models adjust for time trends and seasonality. Results suggest that the SSB Tax passed along to consumers for all SSBs and we found overshifting for the carbonated SSBs. A greater effect is seen among the small package sizes, and we see heterogeneous effects by region. Estimating the effect of the Tax on prices is important to understand the potential effect on consumption.

Vincent Requillart - One of the best experts on this subject based on the ideXlab platform.

  • Tax incidence with strategic firms in the soft drink market
    Journal of Public Economics, 2013
    Co-Authors: Celine Bonnet, Vincent Requillart
    Abstract:

    Healthier food diet is likely to prevent numerous non communicable diseases. Then there is a growing interest in evaluating the impact of food price Taxation on food consumption. However, strategic reactions of both manufacturers and retailers are missing in empirical analysis. Rather, passive pricing is assumed. We develop a structural econometric model, to analyze vertical relationships between the food industry and the retail industry. We apply this model to the beverage industry and consider Taxation of sugar. After selecting the ’best’ model of vertical relationships, we simulate different Taxation scenarios. We consider Excise Tax as well as ad valorem Tax. We find that firms behave differently when facing an ad valorem Tax or an Excise Tax. Excise Tax is overshifted to consumer prices while ad valorem Tax is undershifted to consumer prices. We find that an Excise Tax based on sugar content is the most efficient at reducing soft drink consumption. Our results also indicate that ignoring strategic pricing by firms leads to misestimate the impact of Taxation by 15% to 40% depending on the products and the Tax implemented.

  • Tax incidence with strategic firms in the soft drink market
    Journal of Public Economics, 2013
    Co-Authors: Celine Bonnet, Vincent Requillart
    Abstract:

    Abstract Because soft drink (SD) consumption is considered to be a contributor to the ‘epidemic’ of obesity, there is a growing interest in evaluating the impact on SD consumption of alternative Tax policies. In this paper, we propose a methodology to evaluate the impact of Taxation of a food market taking into account the strategic price response of both manufacturers and retailers. We apply this methodology to the French SD market and simulate the impacts of ad valorem and Excise Taxes. We find that firms behave differently when facing an ad valorem Tax or an Excise Tax. An Excise Tax is overshifted to consumer prices while an ad valorem Tax is undershifted to consumer prices. We find that an Excise Tax based on the sugar content of SD is the most effective at reducing SD consumption. Our results also indicate that ignoring strategic pricing by firms leads to misestimations of the impact of Taxation by between 15% and 40% depending on the products and the Tax implemented. In the short-term, that is, ignoring positive long-term health effects, a €9 cents/l Excise Tax has a small negative welfare effect (about €1/person/year).

Feng Liu - One of the best experts on this subject based on the ideXlab platform.

  • Excise Tax avoidance the case of state cigarette Taxes
    Journal of Health Economics, 2013
    Co-Authors: Philip Decicca, Donald Kenkel, Feng Liu
    Abstract:

    We conduct an applied welfare economics analysis of cigarette Tax avoidance. We develop an extension of the standard formula for the optimal Pigouvian corrective Tax to incorporate the possibility that consumers avoid the Tax by making purchases in nearby lower Tax jurisdictions. To provide a key parameter for our formula, we estimate a structural endogenous switching regression model of border-crossing and cigarette prices. In illustrative calculations, we find that for many states, after taking into account Tax avoidance the optimal Tax is at least 20% smaller than the standard Pigouvian Tax that simply internalizes external costs. Our empirical estimate that Tax avoidance strongly responds to the price differential is the main reason for this result. We also use our results to examine the benefits of replacing avoidable state Excise Taxes with a harder-to-avoid federal Excise Tax on cigarettes.

  • Excise Tax avoidance the case of state cigarette Taxes
    Social Science Research Network, 2010
    Co-Authors: Philip Decicca, Donald Kenkel, Feng Liu
    Abstract:

    In this paper we contribute new empirical results about consumers' decisions to avoid cigarette Excise Taxes, and a new applied welfare economic analysis of optimal Excise Taxation with Tax avoidance. We examine direct measures of consumer Excise Tax avoidance in novel individual-level data from the 2003 and 2006 - 2007 Tobacco Use Supplements to the U.S. Current Population Survey. We estimate reduced-form models and a structural endogenous switching regression model. In the structural border-crossing equation, the decision to cross the border depends on the difference between the endogenous home- and border-state prices. The reduced-form and structural results show that the probability of cross-border cigarette purchases responds in predictable ways to the economic incentives created by the distance to the border and state Tax differentials. To our knowledge, we are also the first study to extend the formula for optimal Pigouvian corrective Taxation to incorporate Excise Tax avoidance. Taking into account Tax avoidance implies the optimal Tax is substantially below the simple Pigouvian Tax that internalizes external costs. In illustrative calculations for 2003, we find that in 20 states the optimal Tax that accounts for Tax avoidance is at least 20 percent smaller than the simple Pigouvian Tax.