Pros for Fat Tax - http:/econ.economicshelp.org By: T...

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http://econ.economicshelp.org By: T Pettinger April 13, 2011 1. Externalities of Unhealthy Foods. For Unhealthy eating has an impact on ourselves but also on the rest of society. Obesity related diseases cost the US 147 billion per year, 116 billion alone being spent on type two diabetes, which is caused by overeating and lack of exercise. If we choose to eat foods that make us unhealthy and obese, this creates external costs such as health care, sick days on the job and medications. The external cost of unhealthy food is not easy to calculate, but this is not a reason to avoid having a tax. The point is that at the moment society is effectively subsidizing the consumption of unhealthy foods, and ultimately it is the taxpayer who has to pay for this. Summary: The government should collect tax from unhealthy foods to pay for the health costs that they create. It is the same thing they do with gasoline and cigarettes, so why could it not apply to something just as harmful and unhealthy as cigarettes; e.g. Almost a two dollar tax on a pack of cigarettes, because of their risk on health. http://money.howstuffworks.com by Jacob Silverman April 15, 2011 2. How and what would they tax it on? For The second taxation scheme assigned various foods a rating, called an SSCg3d score. Researchers rated foods based on their levels of eight nutrients. Very healthy foods had negative scores, while unhealthy foods had positive scores. Foods with scores more than +8 would be taxed, resulting in an estimated 2,300 lives saved but a 3.2 percent increase in food costs weekly. Summary: This is the basic chart they would determine if a certain food is fat or otherwise unhealthy and then they would go on to find out how much tax would be applied. This is just one of the three solutions being looked at heavily right now.
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http://econ.economicshelp.org By: T Pettinger April 13, 2011 3. It is a tax on the poor. For The argument that it would be a tax just on the poor is far from true. How many people do you know have not eaten at a fast food restaurant? It’s just fast food that is bad though, many cheap foods in the supermarket are filled with fats, sugars and salts to enhance the flavor of a cheap food. Low incomes are more likely to consume unhealthy foods; therefore, this tax will increase inequality. However, if a tax on fatty foods saves lives, we should not avoid implementing it just because it is the poor who will mostly benefit. If we are really concerned about the impact on equality, the revenue from a fat tax can be targeted to
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Pros for Fat Tax - http:/econ.economicshelp.org By: T...

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