Economics meets politics wrote:
tax the fat wrote:The government needs to start throwing some ridiculous tax onto crap food.
Economics is a HUGE problem, here. The cheapest foods are the worst.
Nice concept, but I have trouble seeing how it would work in practice.
Would all ground beef subject to the crap food tax? What if it's 95% lean? What if it's grass-fed steak? White flour? Whole corn meal (good for making Doritos)? Refined sugar? Honey? The lobbyists and special interests would be all over a crap food tax to make it favor their products and create loopholes. You would get the kind of anomalies like they have in the UK where hard cider is taxed less than beer, so the cheap drunks just switch from beer to cider. Somebody would figure out some way of selling crap food that avoided the crap food tax.
I also can't see that it would be in any politician's self-interest to become the champion of taxing junk food.
there actually are numerous state and/or local excise taxes on crappy foods
interesting side note- where kit-kat bars are manufactured there is an excise tax on candy. therefore the company managed to contest that kit-kat bars are not candy because they have a wafer. it held up. kit kat bars=/= candy
similar thing with either pennsylvania or philadelphia concerning tastykakes. i dont remember the details on that but tastykake managed to avoid a certain excise tax on crappy food