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Revelation of a study, the first to demonstrate how being against taxes can influence consumer behavior.
Os consumers what is oppose to certain taxes are more likely to reduce consumption of taxed goods, compared to consumers who support the tax.
The conclusion comes in one that focused on the 2010 soda tax in the US state of Washington. And it is the first study to demonstrate how being against taxes can influence behavior of consumers.
The tax on soft drinks, created with the aim of reduce o deficit state budget, was in effect for just five months before being repealed by voters.
Researchers analyzed parish-level voting data and in-store sales data from NielsenIQ to track soda sales before, during and after the tax’s implementation.
The results showed a 53% greater reduction in soft drink sales in stores frequented by people who were against the tax, compared to stores frequented by supporters.
It is important to highlight that the increase of prices due to the tax was uniform in all stores, indicating that the reduction in consumption was due to behavioral opposition, and not just price sensitivity.
This answer “rebel” highlights the complexity of using consumption taxes as policy instruments, cites .
“When opposition is strong, we may well find that a consumption tax will raise much less tax than expected,” says study co-author Andrew Ching.
Policymakers may need to consider public opinion when creating fiscal policies, using polls and experiments to predict reactions.
The study also draws parallels with the tariffs proposed during the administration Trump, suggesting that opponents of these policies could reduce consumption to avoid contributing to government revenues.
This can unintentionally cause larger economic changes, such as reduced imports or increased domestic production.
