The “soda tax” has begun to heat up around many parts of the world, especially in Europe and the US. There are many sides to the soda tax argument. One side says the tax will help reduce obesity by increasing the price of sugary drinks, a large source of the obesity according to pro tax side. The opposing argument is that there should not be regulations or taxes on what people drink because it is a person’s choice of what they put in the body. Put those arguments to the side and focus on the most important component of the proposed tax, the economic component. The way to determine the legitimacy of this proposed tax is to look at the economics behind it and determine how and if the tax will help or hurt the economy. How can the tax be justified?