Tax soda, pizza to cut obesity, researchers say
A sin tax on junk food?
Yahoo-(Reuters) – U.S. researchers estimate that an 18 percent tax on pizza and soda can push down U.S. adults’ calorie intake enough to lower their average weight by 5 pounds (2 kg) per year.
The researchers, writing in the journal Archives of Internal Medicine on Monday, suggested taxing could be used as a weapon in the fight against obesity, which costs the United States an estimated $147 billion a year in health costs.
“While such policies will not solve the obesity epidemic in its entirety and may face considerable opposition from food manufacturers and sellers, they could prove an important strategy to address overconsumption, help reduce energy intake and potentially aid in weight loss and reduced rates of diabetes among U.S. adults,” wrote the team led by Kiyah Duffey of the University of North Carolina at Chapel Hill.
With two-thirds of Americans either overweight or obese, policymakers are increasingly looking at taxing as a way to address obesity on a population level.
Costly to collect such highly targeted taxes.
Much better to broadly tax consumption, so as to (a) raise revenue economically, effectively, equitably and easily; and (c ) to discourage unnecessary and excessive consumption.
Taxing consumption = encouraging savings
. . . = less demand for capital from abroad
. . . = lower capital account surplus
. . . = smaller current-account deficit.
Missed “(b) enable direct taxes on business and incomes to be reduced;
How about debt tax on consumption of foreign goods with money going to pay-off China?
Here’s a great way to reduce the amount of pizza consumed along with one of the more harmful ingredients in the dough (wheat gluten) And that would be to stop subsidizing agribusiness and wheat production. Of course this is impossible to even discuss among those on the corporate plantation. So instead we get advocates of higher taxes with no viable alternative even mentioned among mainstream “conservatives”.
Mr Konop,
Why do you keep insisting that the only way to pay off the Dubious Debt is to dramatically raise the cost of living of the least well-off Americans?
No one buys foreign goods because they’re foreign (OK, exceptions such as wine). They buy foreign goods because local ones are either too expensive or not good enough, or some combination of the two.
Why do you keep on insisting that punishing the consumer is a good idea?
David we all most pay our debts! China will learn the hard way unless the play boy fair they will be holding the bag.
American companies buy products made in China by Japanese, Korean, Taiwanese, Hong Kong, European and American companies.
As part of the deal, the Chinese government gets to keep the interest on the foreign exchange reserves ($2.5 trillion and rising) and debt (~$1.5 trn of the $2.5 trn) they hold, reserves that are in a currency that is falling in value.
Whipping poorer American consumers still doesn’t make any sense at all.
David,
It does if it pays down debt and creates jobs here. And it makes sense for China because if they do not do it they will be left with a bag full of nothing.
Mr Konop,
Please, think again.
Raising the cost of living first would reduce demand and thus lead to larger debts and few jobs.
If, as you insist on fantasizing, Americans suddenly become very low cost and extremely productive, and are the employee of choice for manufacturers, the many years needed to build world-class factories and infrastrucutre would guarantee very few jobs were created as compared to those destroyed for a decade or more.
Not smart.
David
If we follow your advice China will never get paid back. As someone who loans money for a living, it is only as good as the person ability to pay you back. This is the same reason why we are facing a global slow down.
OK, I’ll bow to your expertise on lending and credit risk; I’ve never worked in the financial industry myself, but I keep a pretty close eye on it anyway.
Back to the question: why punish American consumers, particularly at a time of high unemployment?
The only effect would be more misery.
David,
We must pay our bill, that is not a punishment it is reality. Second it would make U.S. industries more competitive and create jobs here. And it would increase margin for China which may increase wages in China.