This article examines the health and financial impact of a tax on sugar-sweetened beverages (SSBs) on higher- and lower-income households. Using data from the 2006 Nielsen Homescan panel, researchers found that large taxes on SSBs have the potential to positively influence weight outcomes, especially for middle-income households. A 40 percent price increase would lead middle-income groups to consume 17 fewer calories per day of SSBs, and they would lose an average of 0.6 kg per year. Researchers also found that SSB taxes would generate substantial revenues. A 40 percent tax on all SSBs would raise approximately $2.5 billion in tax revenue.