Tips For Taxes….On Soda?

All it takes is a quick glance at your Facebook or Twitter feed to know that we are a nation obsessed with eating. There seem to be endless posts of gourmet meals, tips on how to eat “clean”, and even help with fitness programs. With all the eating Americans do, it is no wonder the rate of obesity is on the rise. The problem has reached such epic proportions, that the First Lady made it one of her causes. There are several options for weight loss programs, and some will hit you where it hurts the most; your wallet.

The first ever tax on soda and other sweets was put in place close to a year ago, in Berkeley, California. The idea was to raise revenue, while promoting healthy habits. The tax is in its infancy, so it is difficult to gauge results, unless you look south of the border. A soda tax in Mexico is about a year older than the one in Berkeley, and it seems to be working:

• A one peso (6.2 cents) per liter tax on sugary beverages was put in place in Mexico in 2013.
• This tax raised the cost of these types of drinks by about 10%.
• The sales of soda in the first year of the tax decreased close to 6%, although Mexican adults consume approximately 43 gallons per capita each year compared to 31 gallons in the US.

These results show what most of us know: when things cost more, people are more likely to consider making the purchase. When the product causes health concerns, maybe higher prices that prevent the sale is an effective way to improve health. The word “tax” just does not sit well in the minds of most people, and tying it to unhealthy habits is a strategic move for reducing obesity rates.

If you have questions about taxes, let the professionals at Nielsen Law Group provide you with answers. Whether you need help with a minor tax matter, are facing an audit, or simply want to know more about taxes, contact one of our experienced staff today. Call (480) 888-7111 or submit a web request here.