Many lawmakers on both state and federal levels have proposed legislation to increase tax on “junk” foods, such as soda. Citing research that indicates over half of Americans are overweight or obese, some lawmakers believe that raising taxes on these items might encourage consumers to make healthier food choices.
One study published in the Archives of Internal Medicine, indicated that patients in fact ate fewer calories when soda or pizza was taxed at a rate 10% higher than other foods. One of the researchers at the University of North Carolina at Chapel Hill stated that such policies have reduced smoking in teens and adults. Researchers estimate that an 18% tax increase on junk foods could amount to a loss of five pounds per patient per year.
Some doctors at the San Francisco Department of Health support taxing junk foods at a higher rate, and propose analysis of current food subsidized by the federal government, such as corn. Corn subsidies help decrease the price of corn syrup, possibly leading to higher consumption of the sugary food.
Many are opposed to the government manipulating prices of foods to influence eating habits. In a poll by CBS News in 2010, 60% of respondents were opposed to higher taxes on junk foods. Only 38% were in favor of such taxes. 76% said such a tax would not help them loose weight, while 26% believed it would help them.
Others have proposed legislation to tax junk foods at a higher rate and use the tax money to subsidize healthier foods. Since the 1970’s, the cost of healthier foods, such as fruits and vegetables, have risen higher proportionally than the prices of junk foods. Some of the research indicates this might not work.
An editorial in the New England Journal of Medicine said that taxing unhealthy food to subsidize the lower prices of healthy foods could backfire. By lowering consumer prices of healthy foods, they may just use the money saved to buy more unhealthy food.