Advantages of a Body fat Tax
A Fat duty would make people pay social cost of junk food. Consumption of Fatty foods have exterior costs about society. For example , eating processed foods contributes to the challenge of obesity. Obesity is estimated to cost the UK economy about ВЈ6. 6вЂ“7. 4 billion dollars a year. (Blackwell-Synergy). These costs are due to NHS costs of treating disease associated with obesity, such as heart disease, angina, diabetes, cerebral vascular accidents. Time misplaced at work due to obesity problems.
Misplaced earnings by obesity related disease and premature death. Those who are obese are 25% less likely to be in employment, leading to reduce tax earnings and larger welfare investing in benefits.
A tax on oily foods tends to make people spend the cultural cost of these food types. Increasing the cost of unhealthy foods, might reduce require and play a role in reducing obesity levels. Making people pay sociable cost would achieve a more efficient allocation of resources. (see theory of tax upon negative externality) Encourage Healthier Diet. A tax upon unhealthy foods will encourage individuals to choose healthier foods which usually lead to superior health and will help reduce related disease. An ugly tax might also inspire producers to supply foods lower in fat and sugar. Fast food outlets would have an incentive to provide a wider array of foods. Raise Revenue. Through increasing taxes on fatty foods, the federal government could raise substantial sums of money. They will could use this kind of revenue to offset different taxes вЂ“ such as cure the basic level of VAT. Therefore , an ugly tax could possibly be revenue fairly neutral (no total increase in duty revenue). Fairness Neutral. Also a fat taxes could be value neutral. A few may state a fat duty is regressive (takes a better % of income coming from low profits families), but since other regressive taxes are reduced the entire impact on equal rights should be unchanged.
Cons of Fat Duty
Difficult to find out which food deserve an ugly tax. electronic. g. dairy products has high fat...