If you are trying to discourage something harmful, taxes work best when there is a tight relationship between the “dose” that gets taxed and the “response” of concern.Taxes on cigarettes and carbon are well-targeted given tight links to lung cancer and climate change, respectively.
It becomes a big factor that contributes to obesity and diseases in America.
To induce people not to binge on unhealthy food, an increase price on fast food is necessary since people are sensitive about money.
Siting in the restaurant and ordering a regular meal, cost people more time and money than purchasing fast food.
However, at the same time, fast food brings many unhealthy dangers to people.
We find that a US tax on sugar-sweetened beverages would be highly regressive, imposing more than four times as much burden, relative to income, on people in the bottom fifth of the income distribution as on those in the top fifth.
Another issue is how well sugar consumption tracks potential health costs and risks.
Americans are getting fatter and fatter every year.
It is estimated that as many as one in five Americans is obese.
If the price of unhealthy food were brought up to match or exceed the price of healthier alternatives, people who use the money generated by fast food purchases to subsidize the prices of healthy food, such as fruits, vegetables and fresh fish.
By making the unhealthy food more expensive, healthy food will be cheaper in comparison, which would result in an increasing number of people choosing healthy food.