FOOD TAXES: CAN YOU CONTROL BEHAVIOR AND HEALTH OUTCOMES THROUGH TAXATION?
FOOD TAXES: CAN YOU CONTROL BEHAVIOR AND HEALTH OUTCOMES THROUGH TAXATION?

Summary/Abstract: This paper discusses the over-consumption of unhealthy foods as a leading cause of the obesity epidemic in the United States. One possible solution that has gained significant attention in recent years is imposing health-related food taxes to reduce fat consumption. In considering the ramifications of a “fat” tax, we review the extant research on whether fiscal policy interventions can ameliorate obesogenic behavior. Food taxes can discriminate against those individuals on lower incomes as those individuals typically spend more of their overall income on food and access to healthier options is often limited. Further, the extant literature has been unable to estimate the effects of fat taxes on future consumption choices; namely, do consumers opt for healthier options or find less expensive, but equally harmful, substitutions? Ideally, health-related food taxes should be part of a more comprehensive approach to address the obesity epidemic rather than a standalone measure.

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