Answer to Question #71130 in Microeconomics for Summer Grant
Why are municipalities taxing sodas?
A sugary drink tax or soda tax is a tax or surcharge designed to reduce consumption of drinks with added sugar. Drinks covered under a soda tax often include carbonated soft drinks, sports drinks and energy drinks. The tax is a matter of public debate in many countries and beverage producers like Coca-Cola often oppose it. Advocates such as national medical associations and the World Health Organization (WHO) promote the tax as an example of Pigovian taxation, aimed to discourage unhealthy diets and offset the growing economic costs of obesity. Reference: https://en.wikipedia.org/wiki/Sugary_drink_tax