Should we tax unhealthy foods?

March 31, 2015 by Michael Blanding, Tufts Now

What does a 20-ounce bottle of soda cost? If you said 99 cents, you are only partly right. While that may be the price on the sticker at the store, it doesn't take into account the cost to public health. One study, for example, found for every extra can of soda a person drinks per day, he or she is 30 percent more likely to become obese—increasing the risk of heart disease, diabetes and other diseases.

"Diet is now the leading cause of poor health in the country," says Dariush Mozaffarian, dean of the Friedman School, who notes health-care costs account for nearly one out of every five dollars in our national economy.

Yet when cities and states have tried to enact so-called snack taxes on soda, candy and other junk food, they've met resistance. Conservatives greet such attempts as evidence of the "nanny state" limiting personal choice, while hunger groups view the taxes as discriminatory against the poor, who consume more high-calorie foods.

That doesn't mean the policy of taxing foods should be abandoned, says Mozaffarian. In fact, as he argued in an editorial in the Journal of the American Medical Association last fall, it doesn't go far enough. Along with Boston Children's Hospital obesity researcher David Ludwig and Harvard economist Kenneth Rogoff, Mozaffarian expanded on the snack tax by proposing across-the-board food taxes combined with key food subsidies.

"We propose taxing pretty much everything with a food label or sold in chain restaurants," explains Mozaffarian, recommending a flat tax of anywhere between 10 and 30 percent. At the same time, he and his co-authors propose dramatically lowering the prices on unimpeachably healthy foods. "The modest tax would be used to subsidize minimally processed, mostly whole foods that the scientific evidence demonstrates are clearly healthy, such as fruits, vegetables, nuts, fish, vegetable oils and yogurt." The taxes would also support school lunch programs.

The radical step comes out of research Mozaffarian did on different strategies for improving diet, published by the American Heart Association last year. "It showed us that education and knowledge alone have a pretty minimal effect," he says. On the other hand, "there is strong evidence that taxes reduce consumption, while subsidies increase consumption."

It's Public Safety

He compares changing food choices to efforts to reduce fatalities from car accidents over recent decades. "Did we simply say, 'Car accidents happen; let's just educate people about the risks'? No. We instituted driver's licensing, car crash standards, antilock brakes, airbags, guard rails, speed limits and rumble strips, as well as seat belt, child seat and motorcycle helmet laws," he says. "The food system is just as complex—we need to use all the tools at our disposal to address the consumer, industry, food environment and food culture to be successful."

By providing subsidies for healthy foods, the proposal would avoid challenges that food taxes are punitive or regressive. "The subsidy in the beginning would be very large," he says. "Imagine an apple might cost 5 cents, a filet of salmon 25 cents. It would radically alter incentives for producers, retailers, restaurants and the public." While those bargains would be offset by modestly higher prices on processed foods, Mozaffarian believes that with healthier choices, the average grocery bill for families could stay the same or even decrease—while at the same time reducing family medical costs.

Originally, Mozaffarian and Ludwig considered taxing foods at different amounts depending on their healthfulness. However, economist Rogoff counseled that such a scheme would be too open to lobbying by for exemptions, undermining the system. Instead, the idea is to start with a simple flat tax, and later introduce scaled taxes to further increase incentives for food companies and restaurants to create healthier offerings.

"If Pepsi can sell an apple with 'Pepsi' on it and make the same amount of money as soda, they would be delighted to do that," says Mozaffarian. "I believe that over five to 10 years, it would transform the system."

Explore further: Taxes and subsidies could encourage healthier diet and lower healthcare costs

Related Stories

Taxes and subsidies could encourage healthier diet and lower healthcare costs

September 2, 2014
In a Viewpoint published today in the Journal of the American Medical Association, a team of Boston researchers call for the implementation of taxes and subsidies to improve dietary quality in the United States. The researchers ...

Healthy? No thanks: Diets of people worldwide are worsening

February 18, 2015
There may be more fruit, vegetables and healthy options available than ever before, but the world is mostly hungry for junk food, according to a study of eating habits in nearly 190 countries.

Taxing unhealthy food spurs people to buy less

June 19, 2013
Labeling foods and beverages as less-healthy and taxing them motivates people to make healthier choices, finds a recent study in the American Journal of Preventive Medicine. When faced with a 30 percent tax on less healthy ...

Nutrient-based tax could cut nation's medical bills

January 17, 2014
(Medical Xpress)—To reduce obesity-related disease in America, many policymakers and public health officials have proposed either taxing products that make us fat or taxing individual nutrients in fattening foods, like ...

Professors weigh effectiveness of tax on soda and other sweetened drinks

December 4, 2014
Several states and cities have and continue to propose a tax on soft drinks in an effort to curb obesity. In November, voters in Berkeley, California, were the first to approve such a tax. But Iowa State University researchers ...

Eating healthy vs. unhealthy diet costs about $1.50 more per day

December 5, 2013
The healthiest diets cost about $1.50 more per day than the least healthy diets, according to new research from Harvard School of Public Health (HSPH). The finding is based on the most comprehensive examination to date comparing ...

Recommended for you

New shoe makes running 4 percent easier, 2-hour marathon possible, study shows

November 17, 2017
Eleven days after Boulder-born Shalane Flanagan won the New York City Marathon in new state-of-the-art racing flats known as "4%s," University of Colorado Boulder researchers have published the study that inspired the shoes' ...

Vaping while pregnant could cause craniofacial birth defects, study shows

November 16, 2017
Using e-cigarettes during pregnancy could cause birth defects of the oral cavity and face, according to a recent Virginia Commonwealth University study.

Study: For older women, every movement matters

November 16, 2017
Folding your laundry or doing the dishes might not be the most enjoyable parts of your day. But simple activities like these may help prolong your life, according to the findings of a new study in older women led by the University ...

When vegetables are closer in price to chips, people eat healthier, study finds

November 16, 2017
When healthier food, like vegetables and dairy products, is pricier compared to unhealthy items, like salty snacks and sugary sweets, Americans are significantly less likely to have a high-quality diet, a new Drexel University ...

Children's exposure to secondhand smoke may be vastly underestimated by parents

November 15, 2017
Four out of 10 children in the US are exposed to secondhand smoke, according to the American Heart Association. A new Tel Aviv University study suggests that parents who smoke mistakenly rely on their own physical senses ...

Serious health risks associated with energy drinks

November 15, 2017
A new review of current scientific knowledge on energy drinks finds their advertised short-term benefits can be outweighed by serious health risks—which include risk-seeking behavior, mental health problems, increased blood ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.