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Should Junk Food Help Pay for Health Care?

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Congress is considering a ten percent "fat tax" on junk food to help pay for the expansion of health care coverage. But as the Economist points out, defining junk food is tricky. While sugary drinks, fries, and burgers might be lumped under this umbrella of fatty foods, they vary on the junky spectrum. Should it be based strictly on fat, calorie, or sugar content?

Others have suggested a more direct, though controversial, approach to the tax: charging people based on BMI or body fat content. One Economist reader had the following to say:

The common denominator among smokers is cigarettes, so we tax cigarettes. The common denominator among alcohol-abusers is alcoholic beverages, so we tax alcoholic beverages. The common denominator amongst obese people is body fat content (not sugary drinks), so we should tax body fat content.

Do you think spiking up junk food prices would make a big difference on eating habits and health? Or would taxing by weight be more effective?

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50 Comments:

Taxing junk food or taxing by weight would affect lower income people - so it's not going to happen.

Way to much government.

I also agree that this would (unfairly) tax low-income people. Also, I think taxing based on BMI is ridiculous not only because BMI is a flawed indicator but also because genetics plays a significant role in weight. A better way to combat obesity is to educate people about cooking and eating and to make fresh, whole foods available and accessible. Of course, that wouldn't pay for healthcare. But it sure would keep it cheaper in the long run.

Obesity also seems to be related to poverty, for a lot of reasons, so I don't see how taxing it is useful, unless--how about a tax on junk food that pays for subsidies for fruits, veggies, and lean proteins, as well as classes to teach folks how to make fast meals at home from these ingredients. (Not to say that cost and cooking skills are the only issues involved in the poverty-obesity link, but at least it might help to equalize the per-calorie prices between healthy and unhealthy foods.)

A tax on sugar-y drinks would seem to make more sense since these beverages are literally empty calories without any nutritional value at all, and everyone can get the alternative (water) very cheaply.

People are obviously not going to stop eating garbage because it's bad for them. It would be nice if those who did such things as smoke and live at Burger Rot or McSodium were taxed to the hilt on these horrible habits. I'm in excellent health (knock wood), exercise 5x/week minimum and eat well. Why should I have to pay through the nose for health benefits?

Both of these options are bad. I agree with emgroff:
"...taxing based on BMI is ridiculous not only because BMI is a flawed indicator but also because genetics plays a significant role in weigh."

Taxing junk food (or sodas or fast food or whatever) is a terrible idea because there are too many people who would justify buying junk food with the excuse that their purchase is helping pay for others' health care (like the people who purposefully litter in stadiums so that the custodians will have a job to do...).

Whoa. I can think of many, many arguments against this. Full disclosure - none of this affects me personally except that I am really really sick of the moral panic around body size.

1) accurately measuring body fat is difficult and expensive. Inaccurately measuring it is cheap, but highly inaccurate (i.e. taxing based on BMI would be an incentive against healthy exercise, which often decreases body fat but increases weight due to muscle).

2) as monkeyboy mentioned, it's regressive. High body fat is correlated with low socioeconomic status, so this would disproportionately affect those least able to pay for it. I guess one could argue that better for poor people to eat less than eat junk food, especially if the person saying that isn't going hungry.

3) I know there's a lot of uncertainty as to how much body size and shape is influenced by genetics vs. behavior, but it's hard to deny that there are some conditions and medications that cause weight gain. Do we really want being stigmatized and taxed to prevent people from taking steroids to treat autoimmune diseases or those with serious mental health issues from getting treatment? Or even quitting smoking lest they gain the typical 10-15 pounds?

4) Large-scale studies in several developed countries (200K participants in the US, 50K+ in Canada and Japan) have shown that it's beneficial to be "overweight" or at least in the upper part of the "normal" range. Being underweight is as much of a hindrance to health as the highest levels of obesity. Where's the argument for taxing underweight people?

Large amounts of soda or packaged junk food isn't good for anyone, regardless of their body size. I can understand the reasoning behind making those foods less incentivized (though I think removing some of the implicit subsidies to them is a better place to start) and between tax deductions for things like gym memberships. Those are healthy behaviors that should be encouraged in everyone. But to start taxing people based on their size, which is a function of far more than just how many chips they eat and how much exercise they get? The idea makes me kind of queasy (but, hey, maybe that's the idea).

i don't care either way. i don't eat that crap. i'm also skinny-go figure.

As has already been noted here, BMI is junk science and shouldn't be used as any kind of indicator (nor can we seriously consider taxing people based on how obese they are, the logistics of that are mind-boggling, let alone the ethical implications). However, it's likely that the reason why obesity and poverty are so clearly correlated has to do with just how CHEAP crap food is. So the thought of artificially inflating the cost of food that isn't good for you to pay for subsidies on the food that IS good for you...there's something to be said for this. I'm not sure how it could be implemented, though. And unfortunately, there are many businesses out there who profit on selling people awful food at reasonable prices. Far be it from us to hurt any business's profits as long as there's public demand, right...? *rolls eyes*

The BMI tax is a horrible idea. Everyone's body is different, and some people are healthy eaters and big, while others are skinny and unhealthy and about to drop from heart disease.

But taxing fast food and junk food is a good idea - though it would be difficult to come up with an agreed-upon definition. How about an additional tax on restaurant meals in general? That way the poor aren't unfairly targeted - and almost all restaurant meals, including those that aren't e.g. fried, have more fat/calories/sugar/salt than food cooked at home.

Interesting idea, theoretically, but would NEVER work.

Yeah a BMI tax wouldn't work, for the reasons mentioned above. Pre-cancer, Lance Armstrong's BMI indicated that he was overweight (25.8), and while he's mainly known for his post-cancer victories, he was still fit as all heck beforehand...he just had a ton of muscle.

However, I do think it's a problem that calorie for calorie, junk foods are cheap. Yes, it's not that expensive to buy bulk oats, brown rice, WW flour, and dry beans, but fresh produce can be pricey. (And sadly, a good deal of Americans would have no idea what to do with oats, brown rice, WW flour, and dry beans). On the other hand, unhealthy fats and processed sugars and starches are pretty cheap per calorie.

While I do accept the concept of a "junk food tax," I think our resources would be better spent ensuring that safe areas to exercise and easy accessibility to healthy foods and fresh produce are available to all.

high sugar/fat/salt foods have negative (and costly) health impacts on everyone who consumes them, not just on the people who happen to get fat. higher bmi is not a direct index of higher health costs. it just happens to be the most visible and the most permissible to stigmatize. and, as others have mentioned, there are people who are fat without eating any junkfood. taxing them because their bodies have higher set points is just ridiculous and unjust.

One man's junk is another man's nirvana

I say yes if only to make it seem less attractive economically to people making food choices. I'm amazed at how cheaply you can buy a burger and fries. If taxes made these combo deals more expensive then (hopefully) more people would buy healthier foods.

A BMI tax may be the stupidest idea I have ever heard. As well as the facts mentioned above, BMI can fluctuate wildly on a monthly or even weekly basis as a result of diet, exercise, etc, so when would it be measured? There are a million reasons why it would be a terrible idea.

Junk food should not pay for health care, but a junk food tax would be a great idea to subsidize healthy food. If we can make healthy food the obvious economic choice for both consumers and producers/manufacturers, the health care costs will go down on their own.

Maybe we could tax foods with high-fructose corn syrup and produce that crosses state lines when it could be produced locally, and make sure those tax funds only go towards subsidizing the price of organic and locally grown foods. Make less-processed, local foods the cheapest and you will not only help people eat better, but also help the environment by cutting down on chemical processing, transportation, and unsustainable large-scale farming.

Another thing ... put five of us in a room together to talk about what is healthy food and what isn't, and twenty minutes later we'll be arguing about it.

The stuff a lot of people consider healthy, I avoid like the plague.

I eat at crappy places but am not overweight. I just substitute the fries for a side salad and use vinaigrette instead of ranch. And I usually drink unsweetened tea or water. I don't want to be taxed because other people are overindulgent. Take some personal responsibility, people.

I think healthcare reform is a good thing, but gimmicky regressive taxes all suck, and that includes alcohol & tobacco taxes, and the various state lotteries. When exactly did Americans become whiny babies who need their taxes hidden inside a candy coating?

Taxing BMI is ridiculous for all the above cited reasons. Even as someone who occasionally consumes fast/junk food, I would not be opposed to a small additional tax on that. However, with the fact that junk food tends to be cheaper, a tax would place further, undo, economic pressure on lower-income families, which has the potential to cause other, apparently unrelated, issues.

Healthy food can be cheap - it just takes a bit more time and effort to find. If you want to be healthy on a very small budget, you can (I'm forced to do it now as I'm basically unpaid). It's a decision to do what is necessary to buy healthy food at inexpensive prices. People do it everyday. The line at Trader Joe's is a great example of a commitment to health at affordable prices. Why are we justifying those that choose not to? A better question is why are they choosing not to?

Junk food is convenient, fast and feeds laziness. Why shouldn't this be taxed? We should be encouraging people to promote a healthy lifestyle as a part of their life/habits - it's worth the extra effort to live healthily. We shouldn't be promoting the values that junk food symbolizes.

I can buy plenty of fruits and veggies for the same price as a big mac meal. Dollar menu? Bananas run for less than a dollar a pound. Buying organic may be a luxury, but buying healthy (non-organic) is not.

I agree with cupcakemuffin's idea: "Obesity also seems to be related to poverty, for a lot of reasons, so I don't see how taxing it is useful, unless--how about a tax on junk food that pays for subsidies for fruits, veggies, and lean proteins, as well as classes to teach folks how to make fast meals at home from these ingredients."

A BMI tax?!?!

Great, because there is not enough shame and fear surrounding body shapes and sizes already.

Wouldn't it be easier to remove the government funding that makes the corn that goes into the junk food cheap?

But that won't work since it would cut into the processed food industry's profits, fail to give free money to the health industry, and remove demand from the health industry.

Taxing BMI is the most politically stupid thing any politician can do. I want to see the politician who has the cojones to say that we should tax people's BMI. I can hear the lawsuits coming now.

The only thing taxing will do is raise revenues for the gov't and I'm all for it. And it's not too much gov't because they are not telling you what to drink. Listen, if millions of people are willing to pay the ridiculous markup of junk food when they go to the movies, a sports game, amusement parks and $5.00 coffee with foamy milk, they can pay up to 10% more tax on junk food.

Being married and being religious are also linked to better health, so let's also tax single people who don't attend church services regularly. Plus I'm pretty sure we've always been at war with Eastasia.

I think taxing by weight is wrong because skinny people can also be unhealthy (my family is full of skinny people with heart disease).

I think junk food/soda should be taxed just to encourage people to not eat that crap. And yes it might affect lower income people. I am one of those low income people and I think that government nutrition programs already guide people towards healthy foods (you can use SNAP at farmer's markets but not at McDonalds) so it's just another step in the right direction.

If we can find a way to tax junk food that lets us subsidize healthier food for people, then I would be all for that. Trying to determine what qualifies as junk food would take far more work, but I'm sure that given enough effort we can come up with something (perhaps based on if the calories are all from fat and sugar, if it's refined grains or whole grains, use of high fructose corn syrup, etc...).

If the formula/rules that are used to determine if something is subject to the tax starts to lead to even small changes, like using whole grain buns instead of white buns on a burger, regular sugar over corn syrup in products, and so on to get products healthy enough to not be taxed (though not subsidized), that would be great. And if subsidies lead to the point that McDonalds can offer some healthy, more local alternatives for the same price as a Big Mac on their menu, then I think everyone would be happy.

Sure, people are going to still eat more Big Mac's than they should (and I love nothing more than a good cheeseburger, which the Big Mac isn't, but still), at least people will have a good, healthy alternative that's affordable at the same locations. It's still better if people were able to cook at home and prepare food that way, but healthy options are a good start.

What a super idea, gang!

Here are some other great ideas:

A tax on people who have cancer -- they must have made mistakes in their lifestyles so they're using up medical resources that should properly go to others.

A tax on organic food -- since foodies don't really have an effective lobby, it's an easy way to raise revenue without endangering re-election for the pols who vote for it.

A tax on coffee -- everybody drinks it, and it can subsidize a national heathcare plan -- single payer option, of course!

A tax on couples who have children -- talk about using up the earth's resources.

A tax on anyone who goes on food Internet sites -- to help organic farmers who can sell the food to people who then get taxed to help achieve healthcare reform -- except for cancer patients, who should be taxed.

this is just backwards thinking. rather than tax junk food, make healthy food attractive by lowering prices of good, real food. provide incentives for farmers to grow diverse crops and for people to sell healthy foods.

but i guess this wouldn't help pay for the upfront costs of health care. it's just another example of how we seek treatment over prevention in this country. there would be less need for health care if we enabled all people to eat healthy foods.

i also have a problem with penalizing individual consumers this way when it's the system that is the problem. many individuals lack access to healthy food and knowledge. any shift in the eating habits of Americans will require a systematic change.

I'm pretty ok with taxing soda, if nothing else. It's part of changing a norm that drinking soda on a daily (if not more frequent) basis is part of normal/healthy lifestyle, I mean, look at how many schools have vending machines in them! And yeah, soda is possibly one of the most unnecessary things ever. Junk food is cheap and popular in lower SES homes because you have to eat. But soda? You can turn on a faucet and drink water, you can't turn on your faucet and call it dinner.

Taxing fast food makes sense too, but working in the public sphere, I'm all too familiar with how big of a migraine trying to define it would be. BMI tax is stupid as well given how flawed of an indicator the BMI is (my bf is technically underweight most days, but he's super healthy).

And seriously, am I the only person tired of hearing about how we need to make healthy food more affordable? It is affordable! It just takes time, effort, and some basic skills. Unfortunately, a lot of folks don't have all three of those things at their disposal on a daily basis. I would totally support anything that would help remedy "food desert" issues though, as I know that's a big deal in some areas.

@_greenbean - actually, part of prevention is changing the environment in which a problem flourishes. Taxing junk food would address (in theory, at least) the part of the obesity/healthcare issue that involves how readily available and wildly affordable junk food is. Making unhealthy food less affordable can be *one part* of efforts aiming to shift the eating habits of Americans. It's not a great idea as a whole solution to the problem, but it makes sense as a *part* of the solution.

Junk food tax--are you going to tax fruit juice, USDA prime beef, olive oil, etc? What makes one food "junk" and another not? How do you define it in a legislative way?

BMI is BS, as already pointed out. Athletes with any sort of muscle bulk would end up paying more, despite the fact they're among the healthiest people around. Manual laborers by the same token.

If someone is underweight, should they pay a surcharge on low-calorie, low-fat, healthy food? Being underweight also costs more to the health system, you know.

@joyyy...i totally agree with you and hope that it is in fact a "part" of the solution and not just a bandaid. i guess i should have made it clear that i'm not in opposition of this. i think it'll be helpful, but i hope its not the only planned solution.

I think that perhaps the Economist reader is merely using hyperbole to illustrate how intrusive government already is in affecting how we make our own decisions ...?

Wow, over 30 posts on the subject and nobody has rejected the premise of the initial question. How best to raise taxes so that the government can afford to pay for it's citizen's health insurance??? What if the govt. lowered taxes by getting out of the health care business all together? Health care is not a right, as much as we wish it was. It is great to have, but not guaranteed to everyone. Taxing you to pay for my health care is infringing on your rights (the govt. was originally set up to protect individual rights). Anyway, I know this is a wierd post for SE...Shake Shack rules!

The last thing we need is more taxes. Whatever happened to making an attempt to be responsible for one's own fate and an effort at self-sufficiency? Sadly, although the original intent of the Economist reader's remark was hyperbole, but there will be some taxaholic politician who will think this is a great idea. If they're so bent on providing government health care, why not force Congress members to use the program (since they voted themselves out of it), and cut enough government programs to coverthe cost? Let's start with cutting congressional salaries.

~45% of Americans pay $0 in income taxes. If the new health care bill passes, my federal, state, and city income taxes will total close to 70%. Instead of blindly raising my taxes, why don't we start to internalize some of the health hazards of our poor habits. Regressive taxes are only truly regressive if the benefactors are of a higher tax bracket but since so many of our uninsured are among the 45% who do not pay income taxes, a tax upon liquor, cigarettes, fast food, etc would actually go towards a health care program they could use. Currently, the cigarette tax pays for stuff like a new football stadium in Chicago, which should be criminal for a number of reasons. Liquor tax should be raised drastically, and I completely agree with a previous comment that we should be lifting the corn subsidies which would make "bad" food more expensive.

This is one of the stupidest things I've ever read. The right to privacy has been chipped away at a lot over the years but it still exists. Forcing individuals to periodically get on a scale for the federal government is a clear violation of those rights. As such, taxes based on BMI are a non-starter.

Also (to some posters here) -- please don't make this an illiterate economics discussion. There is already enough misinformation out there.

I think Big Tobacco needs to ante up way before Junk Food.

@sloppy - Like the misinformation that we have a right to privacy in this country?


To add to my earlier point... I think that the taxes should help pay for health care. As should the taxes on cigarettes and alcohol (paying for stadiums is a bad bad bad idea). There are already government nutrition programs trying to promote good/healthy eating.

My health insurance company used to offer discounts if we joined a gym or a nutrition program because those lead to better health. Thanks so skyrocketing costs of health care they've discontinued this part. So now I either have to pay for these things out of pocket or not do them at all. I think if we give people incentive to exercise (like not having it cost $900 a year to use a treadmill and yes I know I could run outside on the broken pavement through the streets of SWPhilly with my pepper spray in fear) and join diet programs then they'll do it.

@esarn - "45% of Americans pay $0 in income taxes." That's incredibly vague, care to share the source? I admit this is entirely anecdotal, but all of the uninsured people I know work and pay taxes, so that just doesn't sound accurate to me and I'd love to know what organization is putting out that number.

@ginger -- OK, replace right to privacy with the expectation of privacy from government intrusion that is implied by the fourth and ninth amendments..semantics.

@esarn - thanks! Sounds like that number is heavily influenced by the child-tax credit, which is interesting since I always feel a little jipped by the w4, where being married and having kids seems to equal a government stamp of approval of life choices and cash handout. I know kids are expensive and all, but it always peeves me a little that you get to pay less taxes because of it /soapbox :P

I also want to point out that the person that made the comment at the Economist, as well as 95% of people out there, don't use BMI correctly. BMI should not be used as an individual level tool to see if you are overweight or underweight, as all the examples given (Lance Armstrong, Football teams, etc...) have shown. BMI is a good population level tool where you can have large populations. So, comparing Portland to Seattle on BMI is a fine use, or two high schools, but not two people.

The media likes to use BMI because it's simple and anyone can calculate it, and there isn't a good alternative out there. When used by researchers to show that the average BMI is increasing, it has value, but basing a tax off of it would be a horrible idea.

I agree with 99% of the posts here: taxing BMI is stupid. Even the analogy the poster from the Economist is bad: products are bad, so we tax the product. The poster mistakenly tries to apply this same logic to BMI, not realizing that BMI is not a product one can buy, but a result of a product.

a junk food tax is interesting, although I think would be too hard to pin down on semantic definitions. I think we all here might agree that soda is pretty much empty calories and should be taxed as junk food, but I'll bet Coke would disagree. They might even point at their competitors products ... "Why aren't Lay's Potato Chips being taxed as junk food? They are worse for you!" (Lay's is partnered with Pepsi) ... and the potato chip makers might point at the candy makers, who might point at the donut makers, who cry fowl at the cake and pastry makers ... imagine the carnage of a hundred bakers holding hands as they march on congress, throwing eggs in protest (The police, when they show up to break up fights, promptly ruin the eggs by pouring ketchup on them ...).

Needless to say, the whole situation gets out of hand, and is a little crazy.

It sounds like congress is trying to squeeze a little cash from overweight people. A better idea:

Regulate the price of gasoline and raise it to $8 / Gallon.

People would seriously re-consider their modes of transportation and getting around. More people would walk and bike to work and to the store, turning them into healthier people. In addition, as demand for oil drops, we would greatly reduce the amount of foreign oil we import, dropping our national debt; and we would greatly reduce the amount of green-house gases cars emit in the air.

Three national problems - obesity, economic debt, and the environment - solved with one little solution.

You're welcome :D

(This post brought to you by the makers of humor and sarcasm)

I have to comment here. I am an obese man that has been unemployed for a while now, and I have very little money and have not had much money my whole life (growing up, my family of 10 had little money). What I don't understand is why people think that low-income people eat a lot of fast food. If this is true, then that means that the vast majority of people that have a low income are pretty dumb too or are too lazy to cook. Why should I spend $5 on a fast food "value" meal when I can buy a package of Knorr Noodles and Sauce for $1 at Wal-mart and also get more food? Also, for those of you that say that people should be eating more fresh food, vegetables, etc, here is what I say to you: do you realize how expensive produce is? For me to buy even just a couple items to make a salad would cost me enough money to feed me in other ways for at least a week. And, no, I don't just eat the noodles and sauce. Yes, a lot of what I eat is inexpensive, starch-based food, but I don't have much choice, financially. I do occasionally buy lean ground beef when on sale and make burgers at home. I can make 8 quarter-pound burgers with buns for about $5 and that will give me 4 meals. In closing, I just wanted to say that obesity does not mean eating fast food and that having a lower income does not mean eating fast food, but I do think that obesity and low income do somewhat go hand-in-hand.

I don't think a fat tax is very practical - there are several things wrong with Pigouvian taxes in general. They are hard to calculate because it is impossible to determine the exact amount of externality caused, in this case by obesity, and they affect different people in different ways! Here is an article about why a fat tax wouldn't work: http://www.mindreign.com/en/mindshare/Global-Economics/Fat-Tax/sl35291137bp387cpp10pn1.html

What a terrible idea. We haven't even addressed this country's poverty situation; until everybody can afford food, why increase the cost?

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