Trying to deal with the result of obesity problem in less efficient than dealing with obesity itself. Plus the whole question of whether medical care is a right (like it is in countries where it’s free, at least nominally) or a priviledge (USA) comes up. How is taxing junk food facist? How is it radically different from other government regulation?
[quote]Massif wrote:
If you are worried about funding your health system, how about you just use some of the $5.5 billion dollars that your government supplies the corn industry in federal subsidies?
Is there any economic data showing that high taxes lead to a reduction in demand? Also, not all fast food is bad for you. How do you make that distinction? I certainly wouldn’t trust anybody in government to do it.
Also, would you include it on shit food that you buy in a supermarket? It would be a bit unfair to hit Maccas with a tax for being unhealthy, but letting cheescakes get away with it.
FYI, Australia has a 10% Goods and Services Tax on all food that have been prepared by humans. That basically means everything but fresh fruit, vege and meat, and we are still as fat as a rhino’s ass over here.[/quote]
Frankly speaking, I never fully understood why in USA argiculture is so heavily subsidiesed. Corn definitely should not be subsidiesed.
However the main question is not how to fund health-care. The main question is how to have a healthier nation and hence reduce health-care costs.
Well, classical econ does tell us that higher taxes will reduce consumption of junk food and I think it’s common sense. In fact, I’d think that demand for junk food is rather elastic and that a lot of people eat it due to its low cost. As for real-life examples, I vaguely remember that increasing tobacco taxes reduces consumption.
When I mention junk-food, I include everything - fast-food, supermarket food, etc… Tax will depend on nutrition value of food. 2-3 different categories will suffice. We already have high taxes on tobacco and alcohol. Same can be done for any junk-food.
10% is not a significant tax, plus it doesn’t differentiate between healthy and un-healthy prepared food. I’m no economist, but to have an impact we probably need at least 40% tax. And such high taxes are not new in the developed nations - Israel, for example, has 100% tax on cars and electronics, I think.