Fiscal argument against soda taxes

“As a revenue raising tool, the tax base for SSBs is extremely narrow, creating a volatile and unstable revenue stream. Revenues tend to be unreliable as sales numbers fluctuate, and if the tax is successful in directing consumers away from the taxed products the tax revenues will dwindle over time. This narrow scope also leads to nonneutrality, as consumers can often substitute taxed beverages with untaxed alternatives. Such substitution undermines the intended health benefits by allowing individuals to avoid the tax while diminishing overall consumer welfare and failing to achieve reductions in caloric intake.”

Tax Foundation | Soda Taxes Won’t Fix Global Health