Fast food
The Associated Press

A gold mine for government?

Featured Topic | Posted 9 weeks 17 hours ago

Would you like a sin tax with that Big Mac?

Tobacco and alcohol have long been subject to "sin taxes" used by state and federal governments to pay for children's and health programs. Now a new sin may join the list: Fast food.

New Jersey Gov. John Corzine was recently reported as being open to a tax on the drive-thru joints as a way to help pay for the state's underfunded hospitals. Advocates have suggested such a tax might make unhealthy food less attractive. But critics, such as State Sen. Richard Codey, say a tax on fast food "is a tax on the poor."

Should fast food be taxed?

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Ben likes: The war on fat

Jacob Sullum/Reason

Before you dismiss this agenda as the pie-in-the-sky wish list of wannabe social engineers, consider the trajectory of the Twinkie tax, which has gone from reductio ad absurdum to serious policy proposal in just a few years. In a June 1994 newspaper ad that criticized proposals to sharply raise tobacco taxes, R.J. Reynolds said: "Today it's cigarettes. Will high-fat foods be next?" Anti-smoking activists traditionally responded to this sort of slippery-slope argument by insisting that cigarettes were unique, "the only legal product that when used as intended causes death." To suggest that anti-smoking measures might pave the way for attacks on cheeseburgers and ice cream, they said, was just silly.

Yet six months after R.J. Reynolds tried to scare people with the outlandish prospect of a tax on fatty foods, Yale University's Kelly Brownell endorsed the idea on the op-ed page of The New York Times, citing the precedent set by cigarette taxes. He said "taxing foods with little nutritional value" would deter consumption and help raise money for bike paths, running tracks, and nutrition education. "Fatty foods would be judged on their nutritive value per calorie or gram of fat," he explained. "The least healthy would be given the highest tax rate."

 

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Joel likes: Supertax me

Martin B. Schmidt/New York Times

If the low “cost” of eating fast food is adding to the obesity problem, the solution involves increasing the cost, even in a nominal way. How do we give individuals the incentive to pay a little more — increased physical exertion, lack of convenience — to get their food? This is where a drive-through tax comes in.

We could tax the drive-through purchases at, say, 10 percent, while leaving the purchase of walk-in meals alone. At the very least, it may entice some to park and walk rather than waiting in the car.

Now, this may seem an invasion of personal choice or another step toward a nanny state. Maybe. But there are other arguments to be made. We tax cigarettes in part because of their health cost. Similarly, the individual’s decision to lead a sedentary lifestyle will end up costing taxpayers. In 2001, the surgeon general issued a report noting that obesity and its complications cost the nation $117 billion annually, much of it through Medicare and Medicaid.

Imposing a drive-through tax would be one way of recouping future taxpayer outlays — perhaps revenues could go directly to government health programs. And who knows, it could help the environment, too: with one move, we could fight obesity and reduce emissions from all those cars idling in the line at Burger King.

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