Why a High Soda Tax May Help Reduce Consumption

We have taxed tobacco and alcohol to make them more expensive due to well-known health risks, and this has reduced consumption. Why not tax sugary beverages like soda, which contribute to obesity, diabetes, heart disease, and overall poor health?

Obesity has significantly increased in America, and Type 2 diabetes is also on the rise among children and adolescents. According to the Yale Rudd Center for Food Policy and Obesity, policymakers across the United States are considering various methods to reduce consumption. Consumption may be reduced if taxes are high enough.

Public health campaigns are being launched to educate consumers about the dangers of sugary beverages, high fructose corn syrup, and even energy drinks. Taxation is one of the better strategies; in fact, Denmark, Finland, France, and Hungary all have food taxes.

Denmark, on the other hand, repealed a fat tax imposed on butter, milk, cheese, pizza, meat, oil, and processed foods containing more than 2.3% saturated fat. Because it encouraged excessive cross-border trading and was harming Danish businesses, the tax was repealed in 2012.

According to the Rudd Center, thirty-four states have sugar-sweetened beverage taxes, but studies show that the tax is ineffective because it is too low. Some consumers are unaware of certain price increases. It is proposed that

Consumption of sugar-sweetened beverages has more than doubled since the late 1970s, and the high caloric intake is causing great concern in the medical community. It is critical to address poor eating habits early on, before health problems develop.

Being overweight has its own set of consequences, including higher premiums when purchasing a life insurance policy. Life insurance companies are concerned with weight and build guidelines, and most have desired weight ranges based on height and build.

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