This study examines two states, which may not be representative of the entire country. However, these findings suggest that SSB taxes should not have a negative impact on state-level employment.
About the Study:
This study assessed the net employment impact from the implementation of SSB taxes in Illinois and California through simulation using the Regional Economic Models, Inc. (REMI) model. The analysis accounted for changes in SSB demand, substitution to non-SSBs, income effects, and government expenditures of tax revenues.