It looks like my prediction of a American Soda Tax may soon come true.
According to ABC News, “several of the nation’s leading health experts are calling for a tax on soda as a means of curbing America’s obesity-epidemic”.
But wait, here’s the good part:
Their paper, appearing in the most recent issue of the New England Journal of Medicine, calls for a tax on “sugar-sweetened” drinks in order to reduce the consumption of the drinks and lower health costs as well as fund government-run health programs.
FUND GOVERNMENT RUN HEALTH PROGRAMS
“A tax on sugar-sweetened beverages is really a double-win,” said Dr. David Ludwig, a co-author of the paper and director of the Optimal Weight for Life program at Children’s Hospital, Boston.
“We can raise much-needed dollars while likely reducing obesity prevalence, which is a major driver of health care costs, the paper states.
“Ultimately the government needs to raise more money to cover the deficit, and in terms of ways of raising that revenue, a tax on sugar sweetened beverages is really a no-brainer.”
So, there you go.
But will it help reduce the nation’s obesity problem?
According to the latest research, small tax increases will have little effect on behavior.
On the other hand, big tax increases should do the trick. Especially for America’s poor.
So, there you go, just like I predicted:
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