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A Fed Tax on “Bad” Foods?

May 13th, 2009 · 6 Comments

Last year New York Governor David Patterson proposed a new 18% tax on sweet drinks. He had to drop the proposal because it was unpopular with both the beverage industry and consumers.

Now, according to the Wall Street Journal, Congress is exploring a national surtax on sugary drinks:

The Center for Science in the Public Interest, a Washington-based watchdog group that pressures food companies to make healthier products, plans to propose a federal excise tax on soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. It would not include most diet beverages. Excise taxes are levied on goods and manufacturers typically pass them on to consumers.

Senior staff members for some Democratic senators at the center of the effort to craft health-care legislation are weighing the idea behind closed doors, Senate aides said.

Observation: It would appear that many of the same individuals who claim that tax increases on the rich do not have a constrictive effect on spending are metaphysically convinced that a surtax on bad foods will curtail consumption. 

They can’t have it both ways . . . or can they?

Tags: Tax Policy

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