Will A High Soda Tax Reduce Consumption?

Because of well known health dangers, tobacco and alcohol taxes were raised to reduce buying incentive, which successfully reduced consumption. Why not tax sugar-related beverages that increase risk of obesity, diabetes, heart disease and overall poor health?

Obesity has increased significantly in America and type 2 diabetes is also higher among children and adolescents. Now, United States policy makers across the country are considering various methods to reduce consumption, according to the Yale Rudd Center for Food Policy and Obesity. If taxes are large enough, they could reduce consumption.

Public health campaigns are being launched to help consumers understand how beverages high in sugar, fructose corn syrup and even energy drinks can be dangerous to your health. Taxing can be one of the better strategies; in fact, countries such as Denmark, Finland, France and Hungary have taxes on certain foods.

However, Denmark abolished the fat tax that they had introduced introduced on butter, milk, cheese, pizza, meat, oil and processed food that exceeded 2.3% saturated fat. It had encouraged too much cross border trading and hurt Danish business.

According to Rudd Center, thirty four states have taxes on sugar-sweetened beverages but according to studies, it is not making a difference since the tax is too small. Some consumers are not even aware of certain increases. It is suggested that

Since the late 1970’s consumption of sugar sweetened beverages have doubled and the high caloric intake is of great concern in the medical profession. It is essential to curb poor eating habits early on before health conditions develop.

If nothing else, being overweight has its own consequences, which includes higher premiums when purchasing a life insurance policy. Guidelines concerning weight and build do concern life insurance companies and most have a desired weight ranges according to height and build.

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