Soda Tax

A few thoughts on taxing soda and fruit drinks:

From the comments section for an Op-Ed piece NYT

Via the Economist…

“In a 2007 New York Times piece, Michael Pollan, author of The Omnivore’s Dilemma, writes that the difference (in price per calorie) between fruits and vegetables on one hand and processed food on the other has increased dramatically in the US. Between 1985 and 2000, fruit and vegetable prices in the US increased by about 40%, while the price of soft drinks dropped by 23%. These seem like large changes in relative prices. According to Pollan, the change in relative prices is in large part due to the US farm bill, which provides generous subsidies for corn and soy, which are prime ingredients in high-density “processed food.” Corn syrup, for example, is the primary ingredient in most soft drinks. The farm bill provides virtually no help to farmers growing fresh produce. If that is indeed the case, US government policy truly seems schizophrenic here – bemoaning and trying to combat obesity on one hand and indirectly encouraging it through the farm bill on the other hand. We might want to tax rather than subsidise junk food (Dubois 2007).”
http://www.economist.com/blogs/freeexchange/2009/09 -Dan


It is the word “tax” that throws people into a tizzy. I think of it, instead, as a “user fee”. Think about it this way: parks get some money from general state and federal funds, but those who use the parks also pay an additional fee for the privilege. Roads are paid for from general funds, but drivers also pay a user fee in the form of gasoline taxes. We all, in some way, shape or form, pay the freight for illness care and disability care in this country. It is only right that those who intend to wind up risking more than usual use of same should help pay for it. Soda tax, junk food tax, tobacco tax - I’d even stick a tax on risky sports like motorcycles, that result in a greater-than-average risk of catastrophic injury. If you want to smoke, drink, be fat, eat junk, or engage in risky sports, no one has the right to tell you not to. But you should help pay the freight for the additional services you’re going to use, sooner or later. It is not policing, it is not “nanny state” - quite the reverse. It’s asking people to be adult and responsible and pay up for the choices that they make. -Maureen