FREE TO CONSUME
Sin Taxes on Sugar Sweetened Beverages
In the United States, junk food consumption is associated with rising obesity rates. In response to the obesity epidemic, taxing calorie dense foods with little nutritional value such as sugar-sweetened beverages (SSBs), is gaining popularity among researchers. A sin tax or excise tax, are taxes placed on items that society or the Government finds undesirable. A sin tax currently under consideration is a tax on sugar-sweetened beverages.
There are two primary reasons for the public to be concerned with sin taxes. Sin taxes on any consumable goods will increase the price for consumers. Also, citizens have the right to know how the government uses the revenue from the sin tax?
The two main functions of a sin tax are generating revenue for the Government and curbing consumption behavior. For a tax on SSBs to achieve the public health goal of reducing obesity, it must be the case that reduced consumption of SSBs leads to a switch to healthier alternatives rather than a switch to equally unhealthy products.
Reducing obesity requires changes in a range of behaviors and substances. Consumption of a lone food product is not the cause of the current obesity epidemic. Body weight is a result of behavior pattern and human physiology. Obesity depends on more than just one factor or behavior.
Sin taxes are often adopted in time of economic hardship, however such legislation only makes the economic situation worse. Increased prices on consumable goods incentivizes consumer saving. Consequently consumer spending is decreased. Sin taxes inhibit discretionary spending and potentially eliminate jobs in industries producing products upon which excise taxes are levied, resulting in slower economic growth. Past economic recessions show recovery through initiative and rebirth of consumer spending. Taxing disfavored products because the Government feels that these items are morally questionable is not constructive public policy.
A soda tax would not achieve the public health goal of lowering obesity. Sin taxes historically fail and impede economic growth. Consequently, sin taxes are improper use of the Governments taxing authority. Consumption behavior should not be manipulated by the Government, we should be free to consume.
