California Soda Tax Would Save Hundreds Of Millions In Medical Costs, Study Finds

Guess How Much A Soda Tax Would Save This State In Medical Costs?
A picture taken on September 8, 2011 in Paris shows cans of various sodas. After the French government announced on August 24 to tax these products as part of its austerity plan to reduce the national debt, professionals of the industry contested the measure, last of which the US giant Coca-Cola who suspended a 17 million euro (23.780 million US dollars) investment in France. French President Nicolas Sarkozy insisted on September 7 he was determined to push through a balanced budget amendment called 'golden rule' despite reports that he might drop the contested plan. AFP PHOTO JOEL SAGET (Photo credit should read JOEL SAGET/AFP/Getty Images)
A picture taken on September 8, 2011 in Paris shows cans of various sodas. After the French government announced on August 24 to tax these products as part of its austerity plan to reduce the national debt, professionals of the industry contested the measure, last of which the US giant Coca-Cola who suspended a 17 million euro (23.780 million US dollars) investment in France. French President Nicolas Sarkozy insisted on September 7 he was determined to push through a balanced budget amendment called 'golden rule' despite reports that he might drop the contested plan. AFP PHOTO JOEL SAGET (Photo credit should read JOEL SAGET/AFP/Getty Images)

A proposed tax on sugary drinks in California could save hundreds of millions of dollars in medical costs and reduce new cases of diabetes by tens of thousands, a University of California, San Francisco study found.

While a bill proposing a one-cent-per-ounce “soda tax” from state Sen. Bill Monning (D-Carmel) was shelved last May, he vowed to reintroduce the initiative on Jan. 6 when the legislature reconvenes.

"In my view it's not a question of whether, but a question of when," he said of the tax when his bill was first blocked.

While sugary beverage taxes have been controversial in the past -- a Field Poll last February found only 40 percent of California voters were in favor -- UCSF’s findings may garner more support for Monning’s bill.

Based on the prediction that a penny-per-ounce tax on sugar-sweetened beverages (SSBs) would lead to a 10-20 percent drop in their consumption, researchers estimated a 1.8 to 3.4 percent drop in new cases of diabetes from 2013 to 2022. Those 12,000 to 23,000 fewer cases would save between $320 million and $620 million in medical costs.

The study also predicted a 0.5 to 1 percent drop in incident coronary heart disease cases and a 0.5 to 0.9 percent drop in total myocardial infarctions, yielding an additional $14 million to $27 million savings.

"We see a lot of the data that shows the adverse consequences of sugar-sweetened beverages,” Monning told the Santa Cruz Sentinel, “But what's notable is (the study) goes straight to the correlation between a sugar-sweetened beverage tax, and consumption and better health outcomes."

The benefits of the SSB tax are especially promising for California’s low-income and minority communities.

“The magnitude of the health benefits are projected to be greatest for African Americans, Mexican Americans and those with limited incomes, populations with the highest rates of diabetes and SSB consumption in California,” the study authors wrote. “These findings suggest that reductions in SSB consumption as might be achieved from proposed taxes could have a marked population-wide health benefit for California and have the additional benefit of reducing race/ethnic and income disparities in diabetes and heart disease.”

San Francisco, however, may move ahead with its own citywide soda tax. In October, San Francisco supervisor Scott Wiener introduced a two-cents-per-ounce tax that would add 24 cents to the cost of an average can of soda. Supervisor Eric Mar introduced a nearly identical bill the following month, and city legislators will boil the initiatives down to one bill for voters to consider on the November 2014 ballot.

Before You Go

Arizona Raspberry Iced Tea
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These recognizable-anywhere cans are bad news: They contain 23.5 ounces, nearly three times the suggested serving size for the tea inside. With 90 calories per 8 ounces, finishing an entire can adds up to almost 270.

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Starbucks Bottled Mocha Frappuccino
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The 9.5-ounce Starbucks to go contains 180 calories.

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Jamba Juice Smoothies
Granted, Jamba Juice All Fruit smoothies are made with much better-for-you ingredients than a can of cola. However, it's still easy to mindlessly sip your calories when a 16-ounce size clocks in at least 210 calories.

Flickr photo by libookperson
Minute Maid Lemonade
Amazon.com
A 12-ounce can of the summer favorite clocks in at 150 calories, more than a can of Coke and the same as a can of Pepsi.

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Snapple Apple Fruit Drink
Amazon.com
There are 100 calories in every 8 ounces of this fruity pick, but the bottle is deceiving, since it packs 16 ounces.

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Sunkist Orange Soda
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There are 170 calories per 12-ounce can of this sweet drink.

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Dr. Pepper
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A 12-ounce can clocks in at 150 calories, more than a can of Coke and the same as a can of Pepsi.

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Dunkin' Donuts Strawberry Coolatta
Even the small size of this frozen concoction from the coffee chain is a diet danger, with 230 calories in 16 ounces.

Flickr photo by ReneS
Monster Energy Drink
Amazon.com
There are only 100 calories in 8 ounces of this pick-me-up, but who only drinks half a can? The whole thing will set you back 200 calories.

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Nesquik Lowfat Chocolate Milk
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An 8-ounce bottle of this sweet sip adds up to 170 calories. Beware of larger sizes that encourage bigger portions.

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Barq's Root Beer
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Each 12-ounce can contains 160 calories.

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